“A representative of fourteen leading companies in the domestic development industry, companies listed on the primary market and the catalyst of the Warsaw Stock Exchange signed contracts for the sale of a total of 6,014 buildings in the last quarter of last year, which is the result of not only an impressive 60 percent. Better for the year, but also one of the best comparable quarterly periods in history. With one exception that proves the rule, the other thirteen have shown pretty impressive year-over-year progress. “The year is counted not only in tens, but in five cases even in hundreds of percents,” we read in the statement.
Three companies: Develia, Victoria Dom and Ronson announced historically record annual sales results. In turn, of the four market leaders, including Dom Development, Atal, Robyg and Murapol, only the first of the mentioned companies approached the 4000 level. The contracted space, which everyone apparently exceeded two years ago, has changed.
Where do these results come from?
“The problem is that such a statistically significant increase in developer contracts is the result of a very low base for 2022, that is, the initial period of the cyclical economic slowdown, which was then canceled last year by the initiative of the previous government coalition, which, as As part of the pre-election campaign, another housing loan subsidy program was introduced in the form of a “safe 2% loan”. As a result, as RynekPierwotny.pl website experts point out, the prices of new apartments have increased. The average is over 20% in major domestic metros and the supply of developers has dried up dramatically,” we read further.
“The overall result of last year's contract, although above average in today's difficult economic times and certainly seems satisfactory, can lead to quite mixed feelings.” The overall result of 23,000 units sold is exactly 5,000 units worse than the record result. Last year, 2021, which in view of the strong demand stimulus in the form of 'BK2%', raises concerns about the continuation of the good sales streak of the primary housing market this year,” he added.
Investors are not sure about the government's policies
Despite the promising outlook for economic development of the domestic primary housing market, as evidenced by the new government's announcement to continue to strongly stimulate housing demand with another generous tranche of mortgage subsidies, this time under the banner.Starter apartmentsThe stock market index of development and real estate companies has been in a clear downward trend for almost four months. However, more interestingly, and rather disturbingly, it remains in stark contrast to the apparently “prosperous”. The material mentions the trends of the main WSE indices, WIG and WIG20 at the top.
“The question is, where does such a situation come from? It seems that stock market investors are not entirely convinced of the positive effect of the theoretically saving role of subsequent governments' housing policies, which involve the rather reckless addition of billions of zlotys. State money on preferential housing loans.. This type of way of development of the national housing sector, which includes constant stimulation of demand without active support for the creation of adequate supply, is a rather risky game that can lead to primary housing. In the near future, it will come to a dead end,” the experts of the portal write.
Also read:
Astronomical apartment prices in Warsaw. “RZ” journalist: And that's goodAlso read:
The money is practically gone. Minister on the future of 2% loans.
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