“A new standard on the market.” Developers sensed it immediately
The apartments that developers are introducing to the market are getting smaller and smaller. Not long ago, it was 55 sq m, now the widest offer concerns apartments of 51-52 sq m. This “new standard on the market” is not due to Poles’ love of cramped spaces, but to high prices.
In August, over 3.6 thousand new apartments were put on the market – about 750 fewer than in July this year and 800 more than in August 2023. In August, developers sold about 2.8 thousand apartments in the seven largest cities in Poland. A slight slowdown in prices is visible. Since July, they have increased slightly in the Tri-City and Wrocław, and decreased in Warsaw, Kraków, Poznań and Łódź, but in none of these cities did the change exceed 1 percent.
Fewer apartments are coming to the market
– A year ago, August was an exceptionally busy month for developers. The banks’ offer included the “Safe Credit 2%”, which triggered a real avalanche of demand for apartments. This year, the sales offices of development companies have clearly emptied out. It is no wonder that they have started to increase supply again – commented Marek Wielgo, an expert from the RynekPierwotny.pl portal.
It is also worth noting a certain pattern – in all cities where apartment sales fell in August (in Warsaw, Krakow, Lodz and the Upper Silesian-Zagłębie Metropolis), developers delivered fewer apartments to the market than a month earlier. Conversely, in the Tri-City and Poznan, the increase in sales could have been the result of an increase in supply. Only Wroclaw broke this pattern, where more development agreements were concluded in August, despite the decrease in the number of apartments that appeared on sale.
Smaller and smaller apartments on offer
So prices have stabilized, but we are not dealing with the reductions that customers have been waiting for. The pool of apartments to choose from is also larger than a year ago at this time, when interest in buying increased significantly due to government subsidies. In addition, developers are offering various types of bonuses and even discounts of several percent. It is still not known whether a program of subsidies for loans will be launched. Minister of Development Krzysztof Paszyk assured that there is money for it, but the draft bill has not yet been presented. It is known, moreover, that there is no consent in the coalition for a subsidy program, so it may end with announcements.
There is another regularity that describes the real estate market in recent months: the apartments sold are getting smaller.
– An interesting phenomenon is the clearly visible smaller average square footage of apartments introduced for sale. It is about 55 sq m. It should be noted that apartments introduced in August and September are 3-4 sq m smaller than the premises already on offer. As a result, developers offer apartments with an average area of 51-52 sq m, which is clearly becoming a new standard on the primary market – said Katarzyna Kuniewicz, head of research at Otodom Analytics.
