Residents will pay more. Renovations of blocks of flats are becoming more and more difficult to finance

The period of annual meetings of housing communities, during which decisions regarding the most important investments and renovations are made, is coming to an end. This year, however, many of them may face an extremely difficult choice. Experts from the RynekPierwotny.pl portal indicate that the rapid increase in the costs of construction works makes it more and more difficult for some communities and cooperatives to carry out major modernizations.

– For many of them, large renovations may no longer be possible without a large loan. For some communities and small cooperatives, renovations have become unattainable at all, notes Andrzej Prajsnar, an expert at the RynekPierwotny.pl portal.

As the expert emphasizes, the first half of the current decade is best described by one word – inflation. Sekocenbud data shows that from the first quarter of 2020 to the first quarter of 2026, the average construction costs of houses increased by 59%, and multi-family buildings – by 56%. A similar trend also affected the renovation market.

– It seems obvious that in the same period the costs of necessary renovation works also increased significantly. At the same time, the price of district heating, for example, has gone up dramatically, says Andrzej Prajsnar.

The costs of all major renovations are increasing

Most often, people talk about the need for thermal modernization of older buildings, which allows to reduce energy consumption and lower heating bills. However, experts point out that the problem is much broader.

– No resident of apartment blocks needs to be convinced that this topic has become more important over the last few years. Contrary to appearances, the last bills caused by the severe winter are not the most important – says Prajsnar.

According to data from the Central Statistical Office, the prices of district heating increased by a total of approximately 82% in the years 2020-2025.

• 2020 – increase by 2.6%.

• 2021 – increase by 5.0%.

• 2022 – increase by 29.6%.

• 2023 – increase by 19.7%.

• 2024 – increase by 5.5%.

• 2025 – increase by 3.5%.

This increases the pressure to carry out thermal modernization, although the work itself has also become much more expensive. It is estimated that the cost of building insulation increased by approximately 50 percent during this time.

However, the list of problems does not end with community expenses. Also more and more expensive are:

• replacement of installations,

• modernization of elevators,

• roof renovations,

• painting staircases and facades.

Higher fees do not solve the problem

Although both wages and fees charged to residents have increased in recent years, experts say the possibilities for further increases in rates are limited.

The average advance payment in housing communities for management, building maintenance and renovation funds increased from PLN 2.94 per square meter. in 2018 to PLN 4.38 per sq m. in 2024. In turn, the average operating fee in cooperatives increased from PLN 3.39 per square meter. up to PLN 5.52 per sq m.

– The obstacle is the opposition of residents of multi-family buildings, as well as a possible increase in the level of arrears – notes an expert from the RynekPierwotny.pl portal.

The debt problem is already visible. Data from the Central Statistical Office indicate that at the end of 2024, 25% of the building administration had arrears. cooperative premises and 15 percent apartments located in housing communities.

Are you buying an apartment? It is worth checking the renovation fund

Experts from the RynekPierwotny.pl portal point out that the effects of long-term postponement of renovations may also be felt by people planning to buy a flat on the secondary market. A low renovation fund may mean that residents will have to pay higher fees in the future or have to finance expensive investments.

– It’s probable, but a lot depends on the individual situation. Let us remember that cooperatives and communities in debt for renovations often experienced a rapid increase in NBP interest rates in 2022, says Prajsnar.

The expert reminds that before purchasing a property, it is worth checking not only the rent amount, but also the condition of the renovation fund.

– People buying a used apartment should certainly pay attention to the balance of the mentioned fund and the level of monthly payments. If the building’s inhabitants have so far accumulated little and do not pay much into the renovation fund, the situation will eventually force a change in this policy. Then maintaining the apartment will become more expensive and its possible resale, unfortunately, more difficult. Buyers of premises on the secondary market are checking the maintenance costs of such “M” houses more and more carefully – sums up the expert of the RynekPierwotny.pl portal.