Falling sales dampen developers’ moods. They forecast prices

The market has entered a stabilization phase for good – this is the key conclusion of the July readings of both the Developer Sentiment Index and the Customer Expectations Index. Such a development of the situation in relation to prices is expected by almost 76% of representatives of surveyed developer companies, which is a slightly lower percentage than a month ago (80%). Despite the decline in sales of new apartments, a larger group of respondents are still those who expect price increases than their decreases (13.6% and 7.8% respectively). The Apartment Price Change Index therefore remained at the same level as in June (0.06).

What about real estate prices in the coming months?

– Prices will most likely not change dynamically in the coming months – predicts Robert Chojnacki, founder of the portal Tabelaofert.pl. – The slight majority of votes in favor of price increases can be explained by higher prices in newly introduced projects (compared to investments already underway). The growing number of promotions indicates that in some locations offer prices may drop, but it must be borne in mind that many promotions are of a non-price nature – for example, related to the payment schedule.

The situation is similar with regard to sales levels: almost 60 percent of surveyed developers expect sales to remain at similar levels to current ones. That is, low.

– Sales are at low levels, but most developers do not expect further deep declines in the coming months – analyses Katarzyna Tworska, Managing Director of REDNET 24.

He adds that the offer on the primary market has been rebuilt, buyers have a wide choice of apartments and there is a good chance that if they find an apartment that suits them, they will buy it.

– Especially since many buyers remember the period from 2023, when the developer’s offer was shrinking day by day. It is worth adding that sales results are also improved by widely conducted promotional campaigns – adds Katarzyna Tworska.

Other analyses conducted recently by the analysis department of the portal Tabelaofert.pl show that 52% of developers currently use promotional campaigns and discounts.

Poles like to have their own apartments

It is no secret that Poles value owner-occupied apartments. Long-term leases, very popular in some European countries, have not caught on here. This is due to many factors, including the lack of well-developed institutional leases. Large companies renting apartments operate only in a few of the largest cities. The remaining properties are rented from private individuals. It is rare for a tenant to stay in an apartment for years. In addition, municipalities have a small rental offer: it is aimed only at people in a difficult situation who demonstrate a suitably low income per person and are patient, because you have to wait several years to be allocated a municipal apartment.

We own 87 percent of the apartments

Poland is among the leaders in Europe in terms of the number of owner-occupied apartments.

87% of all households are owner-occupied properties, while the EU average is 69%. In the leading European economy – Germany – they account for only 47%. This is reported by the Polish Economic Institute.

Such a large share of owner-occupied apartments results from, among other things, cultural patterns, lower urbanization of the country and the housing model typical of the countries of Central and Eastern Europe.