The stock market skyrocketed, but developers are calm. They are waiting for the new government’s programs

The stock market skyrocketed, but developers are calm.  They are waiting for the new government's programs

The Stock Exchange revived after the parliamentary elections. Shares of many companies, including banks, soared. Investors from development companies are complaining about this. Despite the good economic situation that we have been experiencing in the real estate industry for several months, the prices of listed companies remain stagnant. Investors are counting on better times to come.

Poland is still alive with elections. There are many indications that despite winning, Law and Justice will not be able to form a government, and the reins of the country will be taken over by: Civic Coalition, Third Way and New Left. The market reacted quickly to the results of the parliamentary elections. On Monday, the quotations of many listed companies increased, including banks with State Treasury participation, and the Polish zloty strengthened significantly against the dollar and euro. On Tuesday, the situation on the stock exchange looks similar, with the buying frenzy still going on.

The stock market came back to life. Shares of development companies without major changes

However, not everyone has reasons to be happy. The post-election increase in prices bypassed the real estate giants on the stock exchange. According to experts, apartment sales in the third quarter of this year were in line with expectations. In July, August and September, development companies from the capital market sold over 7.4 thousand. apartments.

When it comes to the results, there are no surprises. In the third quarter, most companies recorded year-on-year and quarter-on-quarter growth – comments Aleksandra Gawrońska, an expert from JLL, in the “Rzeczpospolita” daily.

Company managers unanimously admit that the market is rebounding because it is driven by both “Safe Credit”, the easing of the S recommendation and the prospect of interest rate cuts. Investors are optimistic about the coming years in the context of the announced election results. One of the priorities of all opposition parties were demands regarding the construction of apartments in Poland.

Are better times coming for housing? The new government will release land for construction

Each group has different proposals for the housing industry, ranging from a 0% loan, to the development of leases and the construction of premises for rent, to the release of land and the renovation of vacant buildings. However, the announcement of the construction of several hundred thousand apartments in the next few years through the National Housing Program resounds loudly. Estimated calculations show that the entire program will cost PLN 20 billion per year. According to politicians of this party, part of the financial resources would be covered by European funds.

The next quarter is the result of a frenzy of real estate purchases from the government program. Experts argue that little will change in this matter. Both apartment buyers, analysts and politicians will be surprised by the current boom and high prices of apartments due to the huge demand for premises. It is unlikely that buyers would refrain from purchasing apartments due to an announced or potential price correction or an increase in the offer. However, the effects of the change should be visible next year.

Change of government policy towards the EU. Undeveloped areas will be freed

According to Aleksandra Gawrońska, in the medium term, the key issue for the real estate market is primarily to increase the supply of premises, mainly by releasing more new areas, maintaining or limiting cheap housing loans and the pace of implementation of climate change policies.

Developers speak in a similar tone. Investors hope that in the case of a coalition of the current opposition parties, the government’s policy towards the European Union in the field of the Green Deal will change. If this happens, the so-called greenfields, i.e. undeveloped areas. As experts point out, the continuation of government programs, including the announced 0% loan, should significantly revive the real estate market.

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