Poles are building themselves less and less often. It hasn’t been this bad for 17 years

Poles are building themselves less and less often.  It hasn't been this bad for 17 years

2023 brought a breakdown in the construction of single-family houses. There has not been such a bad situation on the market for 17 years – writes wnp.pl. According to experts, there may be some recovery this year.

The latest data from the Central Statistical Office (GUS), quoted by wnp.pl, show that last year Poles started building almost 70,000. houses for their own needs. This is one third less than at the turn of 2021/22. There has been no such poor data on the construction of single-family houses since 2006.

Construction of single-family houses. Will there be a recovery?

Bartosz Turek, chief analyst at HRE Investments, quoted by the portal, is of the opinion that 70,000 new constructions are extremely low considering our possibilities and needs – less than 2 houses per 1,000 inhabitants. However, the expert believes that this year there may be a revival in the single-family house construction market. PKO BP analysts think similarly. – We estimate that 2024 may be a year of great motivation to start building a single-family house – indicate representatives of the Economic Analysis Department of PKO BP.

According to experts, Poles may be motivated by changing regulations on spatial planning, in particular changes in issuing decisions on development conditions. The new legal regulations introduce a general plan – an act of local law that will replace the study of conditions and directions of spatial development. Changes in spatial planning may motivate investors thinking about building a house to accelerate the implementation of their plans in order to obtain development conditions based on current regulations. The motivation to start construction as soon as possible should also be the stabilization of prices of building materials, as well as the environmental policy of the European Union, which plans to introduce a ban on installing fossil fuel furnaces (including gas heating) in new buildings. This ban – as the bank’s analysts remind us – is to apply to new privately owned buildings from 2030.

The activity of individual investors may also be stimulated by the new mortgage subsidy program “Mieszkanie na start”, which the government plans to launch in the second half of this year.

An expensive undertaking

Purchasing a plot of land and building a house is an extremely expensive undertaking. The data quoted by the portal show that the average nationwide price of a square meter of a building plot is currently in the range of approximately PLN 200-250 (this amount is unreliable because the prices of land properties are influenced by many factors, including location and plot area). ). The prices of building plots in 2023 increased by approximately 0.5 – 2.5% depending on the voivodeship. compared to the previous year.

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