Prices of new apartments are rising again. These cities are at the forefront

In March, Warsaw and Poznań were the only metropolises where the average price per square meter of apartments offered by developers increased. This is another month of growth in these cities. In other metropolises, the average remained stable – according to preliminary data from BIG DATA RynekPierwotny.pl.

In Warsaw, over the last four months, the average price per square meter of new apartments has increased by as much as 8%. – the same as before for two years. In turn, in Poznań, which was considered an oasis of price stabilization for most of last year, the last five months have seen an increase of over 5%, while previously it took a year and a half.

– This does not mean that developers massively increased apartment prices. Currently, the biggest impact on their level is the change in the structure of the shrinking offer. The cheapest premises are disappearing, and at the same time mainly higher-priced apartments are appearing – says Marek Wielgo, expert of the RynekPierwotny.pl portal.

March rates in the largest metropolises

According to preliminary data from BIG DATA RynekPierwotny.pl, the average price per square meter of apartments offered by Warsaw developers increased by 1% in March, approaching the level of PLN 19.7 thousand. zloty. By 1 percent new apartments in Poznań also became more expensive. To increase to the level of 14.2 thousand PLN per square meter was influenced by the appearance of investments in the offer with prices ranging from PLN 17.5 thousand to PLN 29 thousand. PLN per meter. Premium apartments also appeared in Krakow, but their scale was too small to influence the average price, which remained at the February level – approx. PLN 17,000. PLN per square meter. March also brought price stabilization in other metropolises. In the Tricity, the average was 17.7 thousand. PLN per square meter, in Wrocław – PLN 15.3 thousand. PLN, in Łódź – less than 11.5 thousand. PLN, and in the cities of the Upper Silesian-Zagłębie Metropolis – approx. PLN 11.3 thousand. zloty.

Annual changes and oversupply in some markets

On an annual basis, Łódź was the only metropolis where the average price per square meter of new apartments did not change. In the cities of the Upper Silesian-Zagłębie Metropolis, the increase was 2%.

The RynekPierwotny.pl portal expert emphasizes that there is an oversupply of apartments in both of these metropolises – at the current sales rate, it would take over two years to liquidate the entire offer. In other metropolises, the average price per square meter was higher in March than a year earlier: by 3%. in Krakow, by 4 percent in Wrocław, by 6 percent in Poznań, by 9 percent in Tricity and as much as 10 percent in Warsaw.

The structure of the offer is more important than the raises themselves

The expert points out that the offer of Warsaw developers is rapidly decreasing in the number of apartments at more affordable prices, i.e. up to PLN 15,000. PLN per square meter.

According to BIG DATA RynekPierwotny.pl, their number decreased in the first quarter from 5.5 thousand. up to 4.7 thousand (by 15%). At the same time, there are more and more expensive apartments – with prices above PLN 20,000. PLN per meter – the number of which increased by 21%, to nearly 5,000.

– Fearing the potential economic consequences of the conflict in the Middle East, some development companies may change their business strategy. In conditions of uncertain demand, it is easier to implement projects with higher margins and direct the offer to more affluent customers, less dependent on credit, notes Marek Wielgo.

According to him, in the coming months two factors will remain key to the direction of price changes: the pace of apartment sales and the scale of new investments introduced to the market.

– If the offer continues to shrink and demand remains at its current level, the upward pressure on average prices may continue – even without significant price list increases. In turn, a possible revival of supply, especially in the popular segment, could limit this effect and stabilize average offer prices – sums up the expert.

If the offer continues to shrink and demand remains at current levels, upward pressure on average prices may persist – even without significant price list increases. In turn, a possible revival of supply, especially in the popular segment, could limit this effect and stabilize average offer prices.