The Polish real estate market is being drained by foreign pension funds. The Office of Competition and Consumer Protection warns, and developers claim that this is not a problem.
Buying a flat is becoming more and more challenging every month. Not only has real estate been gradually becoming more expensive for years, loan installments have increased, but apartments are rapidly disappearing from the market. How is this possible if they are so expensive? Prices are inflated not only by developers, but also by investment funds.
Apartments are worth their weight in gold
Not only is there a shortage of apartments, which developers take advantage of and the government notices, but the market is also being drained by Scandinavian, Dutch and German pension funds. As Jacek Furga from the Polish Bank Association says for “Dziennik Gazeta Prawna”, the problem is still particularly felt on the Warsaw market. In the capital, as much as 15% was transferred to funds in the last three quarters. all completed apartments. This decline means that supply cannot keep up with demand, which means that developers can continue to increase apartment prices. Currently, in three cities in Poland, the average price of a square meter in new construction has exceeded PLN 10,000. zlotys.
– We see a threat related to large-scale purchases of apartments by financial institutions. In the current phase of the business cycle, this may result in limited supply on the market and, consequently, in price pressure and exclusion of consumers, especially those with lower incomes, from access to housing – wrote the Office of Competition and Consumer Protection in response to a question from “Dziennik Gazeta Prawna”.
Apartment prices are rising because of funds? Developers deny it
The developers themselves have a different opinion. A representative of the Polish Association of Developer Companies claims that foreign pension funds report demand for apartments at a very early stage of the project, which allows for financing the entire project. It also suggests that it is the money from the funds that allows for more efficient completion of the investment. It also reminds that for people who decide to rent, it does not matter who owns the apartment, and it is for this purpose that funds purchase premises in Polish cities.