War in Ukraine to have strong impact on Polish real estate market

The series of interest rate hikes that started in October has slowed down the Polish real estate market. Poles are afraid of more expensive loans, and the uncertainty related to the situation in Ukraine additionally caused many potential buyers to postpone the decision to buy a flat. Experts estimate that the conflict in Ukraine will have an increasing impact on the Polish real estate market in the coming months, both in terms of demand and supply. However, they expect changes in the real estate market at the end of May, when the government program "Flat without own contribution" will be launched.

"It seems that the conflict in Ukraine will have a big impact on the Polish real estate market. This is mainly due to the uncertainty that we have at the moment. As long as this uncertainty lasts on the market, customers will hold their purchasing decisions," Waldemar Wasiluk, vice president of the board of Victoria Dom, assessed.

Data from the Credit Information Bureau (BIK) confirm that the uncertainty related to the development of the situation abroad has already translated into a significant decline in demand for housing loans. In February this year. 30,420 potential borrowers applied for a housing loan,  compared to 47,720 a year earlier, which means a decrease of 36.3 percent. Banks and credit unions sent inquiries to BIK for housing loans for an amount lower by 29.2 percent compared to the same month a year earlier. However, analysts indicated that the February reading of the BIK index does not fully reflect the effect of the war in Ukraine, and its negative impact will be visible only in the following months.

(Newseria)