6.6 C
Sunday, February 25, 2024

Apartment prices. The latest NBP report

Must read

- Advertisement -

In the third quarter, just over 49,000 apartments were put into use, i.e. 15 percent year-on-year and 13.5 percent less compared to the second quarter – informed the National Bank of Poland (NBP). He also reported how apartment prices were rising in the largest cities.

In the report published on Thursday entitled “Information on apartment prices and the situation on the residential and commercial real estate market in Poland in the third quarter of 2023.” The National Bank of Poland reported that 62.4 thousand construction permits were issued. apartments, which means an increase of approx. 15.3%. compared to the second quarter of this year and less by almost 35.8 percent. compared to the third quarter of 2022

Increase in housing prices – NBP report

“On primary markets, nominal average transaction prices per square meter of new apartments (RPT) increased both q/q (quarter to quarter) and y/y (year to year), especially in Wrocław, Poznań, Warsaw, Gdynia and Kraków, however, they decreased in Łódź,” the report wrote.

- Advertisement -

These prices increased by 6.4%. kdk and 9.9 percent y/y in Warsaw, in Gdańsk by 2.3%, respectively. and 0.3 percent, in Gdynia by 4.2 percent. and 7 percent, in Kraków by 4.9 percent. and 5.5 percent, in Poznań by 5.3 percent. and 9.8 percent, in Wrocław by 2.8 percent. and 11.3 percent

In Łódź, nominal average transaction prices per square meter new apartments decreased by 0.9%. kdk and increased by 3%. rdr.

Apartment prices – NBP reportnbp.pl

On secondary markets, increases in the dynamics of nominal prices were observed compared to the second quarter of this year, particularly high in Łódź and Kraków. There was continued demand for older, better located, but smaller apartments due to the lower purchase cost.

Construction of apartments

Data from the National Bank of Poland show that in the third quarter of this year, the construction of 53.3 thousand was started. apartments, i.e. more by approx. 13.3 percent compared to the second quarter and less by approximately 15.7 percent. rdr.

“Again, the costs of housing construction, i.e. materials, labor, equipment rental, grew slightly more strongly quarter-on-quarter, which was related to lower construction and assembly production. Interest in the purchase of construction land returned and their prices increased. At the same time, an increase in transaction rates was observed. rental of sq m of housing and higher, than recorded in the previous quarters, increases in average nominal transaction prices of sq m of housing on primary markets,” the central bank indicated.

Apartments for rent

The central bank announced that the number of apartments offered for rent increased in 2023, which was, among other things, the result of putting into use apartments purchased in 2020-2022, when many investors decided to buy apartments for rent.

“The level of average transaction rental rates per square meter of apartments (excluding service and utility fees) increased slightly compared to the previous quarter in all groups of cities, which slightly increased the profitability of renting in large centers,” it added.

NBP pointed out that due to the height interest rates the monthly cost of the loan installment related to the purchase of an apartment has become similar to the cost of renting an apartment.

As reported, the professional rental market should continue to develop in the coming years due to the unstable situation on the real estate market, the attractiveness of apartment prices in Poland compared to other European countries and the high nominal costs of mortgage loans.

Housing loans

The report states that the value of disbursements of new housing loans in Poland in the third quarter of this year. was higher than loan disbursements in the same period of 2022, which was related to the increase in the creditworthiness of households. The value of new household contracts for PLN housing loans (excluding renegotiated contracts) according to NBP data was in the third quarter of this year. PLN 15.2 billion, i.e. higher by approx. PLN 4.2 billion (38% increase) compared to the previous quarter, and higher by approx. PLN 6 billion (65% increase) compared to Q3 2022 r.

NBP also informed that currently in the six largest housing markets in Poland, approximately 76 percent funds financing apartment purchases are households’ own funds. Credit demand increased in the third quarter of this year. mainly as a result of reducing the buffer for calculating creditworthiness by banks, in accordance with the recommendations of the Polish Financial Supervision Authority, and thanks to the launch of a 2% safe loan from July 2023.

Main photo source: Shutterstock

Source link

More articles

- Advertisement -

Latest article