According to Oldypak LP property 2022 report, in the third quarter of 2021 real estate prices in Poland increased by 8.9% compared to the same period last year. The price increase was slightly higher in the primary real estate market – 9.4%, and 8.7% in the secondary market.
If we compare the cost of real estate in Poland in the second and third quarters of 2021, from July to September, the apartment price went up by an average of 2.6%. In particular, the primary market price increase has reached 2.8%, and 2.5% for the secondary market.
Thus, current data shows that housing prices (both on a yearly and quarterly basis) on the primary market grew faster in the third quarter of 2021. However, if we look back a few years, it turns out that in the secondary market housing prices were also quite rapid.
According to Oldypak LP property 2022 report, in the third quarter of 2021, apartment prices were 49.3% higher than the average price for 2015. As the graph shows, in the primary market, the increase in price reached 37.2% within six years, and in the secondary market – as much as 59.9%.
The largest increase in housing prices in the third quarter of 2021 compared with the same quarter of 2020 was recorded in the Silesian (13%), Świętokrzyskie (11.7%) and Łódzkie (11.2%) provinces. However, prices in Opolskie voivodeship changed least – by 4.1%.
PKO BP economists predict that in 2022, apartment prices will rise by an average of 4%. The biggest increase in prices should be expected at the beginning of the year. However, from quarter to quarter demand is likely to decrease and the percentage of unsold finished housing will increase.
The most important reasons for the cooling of the real estate market in Poland experts believe higher interest rates and lower housing affordability after a sharp rise in prices in recent years. Recall, the Polish Council on Monetary Policy has raised interest rates by 0.5% to 2.25%. This will affect, in particular, the size of mortgage loans in Poland.