Warsaw: in the capital of Poland prices for accommodation continue to fall in the 3rd quarter 2011

Prices for accommodation in Poland continue to fall

Polish real estate market is experiencing another phase of decrease. According to the Polish Radio, in the third quarter of 2011 prices for apartments, houses and other types of real estate property in Poland decreased by 1.5% compared with the price level for the same period in 2010.

The report was compiled by the Polish real estate portal Szybok.pl in collaboration with major real estate agency Metrohouse and financial Expander consulting company. It provides the data on the 15 largest cities of Poland.

The most significant drop in demand was recorded in the new apartment market segment. Leader in terms of buyer interest decrease for new apartments was a resort town of Sopot. Here in comparison with 2010 demand level declined by 4.2% compared with the last year.

Gdansk, the main port city of the country, is practically at the same level. Demand for new apartments in Gdansk and Gdynia, which is a part of the agglomeration, decreased by 3% in the 3rd quarter of 2011. Closes the "top drop list" another Polish metropolis - Lodz, where demand for new apartments was by 2.8% lower.

Even sharp decline of accommodation prices could not prevent the drop in demand. Thus, Sopot was a national leader of the price fall. House prices in Sopot in the 3rd quarter of 2011 decreased by 6.4% compared with the same period in 2010. In Gdansk, Torun, Wroclaw, Opole and Lodz housing prices fell by 3%.

Since the beginning of the global financial crisis real estate prices in Poland fell by 8-30% depending on the city. Currently, the average cost of square meter in the most expensive city in the country, the capital Warsaw, is about 2000 Euros. It is followed by the Trojmiasto (Gdansk-Gdynia-Sopot), where a square meter costs on average 1,500-1,600 Euros.

Ilya Kalachev

Photo: Dmitriy Zuev

Date: 30/12/2011