Secondary market for real estate - August 2009

There is an evident trend of decline in apartment prices on the real estate market in Poland in comparison to the last 12 months. It is caused by limited access to mortgages, the slowdown in economy and deterioration in labor market resulting in lower demand for apartments.

However, the quarterly data is surprising. 8 out of 15 analyzed locations have shown a trend of growth in apartment prices compared to May of this year. The largest price increases have been noticed in Opole and Torun (3.3% each) and in Sopot (3%). Prices have also risen significantly in Lodz (2%) and Lublin (1.1%). In Warsaw and Olsztyn the housing prices have not changed. The fall in prices has been noted in 4 of the 15 analyzed locations. The largest decline in prices occurred in Gdynia (4.3%) and Gdansk (2.3%).

On the one hand, we deal with decline in property prices on the annual basis and on the other hand, with slight increase in prices in the last quarter. The upward trend in property prices could have already been noted in May but June has brought slightly more optimistic figures. The same conclusion can be drawn on the basis of the data of August 2009. It indicates a slow stabilization on the real estate market. It is connected with the improving economic situation not only in Poland but also in the whole Europe and the world (the U.S. government intervention). It should be remembered, however, that the situation still remains uncertain. The coming months will show whether the growth in property prices is permanent.