Real estate market in Poland in 2009 - December 2009

Summary:

• The word that describes last year on the real estate market best is lethargy. There were no spectacular price changes. The overall number of transactions reflects the condition of the market. In 2009 37% of real estate agents finalized less than one transaction a month. In 2008 53% of agents finalized at least one or two transactions and 36% finalized 3 to 5 (Szybko.pl and Expander poll).

• 2009 brought a breakthrough because of the introduction of the "Rodzina na swoim" program.

• The average prices of apartments in 12 largest Polish cities fell by 4,9%. Lublin, Olsztyn and Opole where the prices rose were exceptions.

• The percentage of the fall in house prices in Warsaw, Wroclaw, Cracow and Bialystok that took place in 2009 is comparable with the fall of apartment prices and oscillates around 7%.

• The average costs of renting an apartment fell by 8% in the 6 Polish largest agglomerations.

• The fourth quarter od 2009 brought the first sympthoms of improvement in the availability of morgages.

• The rates of the new mortgages came back to the level from the beginning of 2008.

• The tendency of fall of creditworthiness stopped in 2009.