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Tuesday, July 23, 2024

Housing prices in Poland have increased nominally by 13 percent in the last 12 months

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Housing prices in Poland have risen nominally by 13 percent in the past 12 months, according to a report by Knight Frank. This is the third highest among 56 housing markets worldwide analyzed by the aforementioned firm.

According to the report, global housing markets recorded stronger growth in the first quarter of 2024, with the annual result reaching 3.6 percent. “This represents a significant improvement compared to the 2.2 percent growth observed in the second quarter of last year, when markets were absorbing the impact of the sharp rise in interest rates around the world that has been visible since the beginning of 2022,” it said.

“Although prices are rising at an annual rate of 3.6 percent, this is still below the long-term average trend of 5.6 percent over the past 20 years. Quarterly growth, although more volatile, is 1.3 percent, comparable with the past two quarters and slightly below the long-term average of 1.4 percent,” the release said.

Rising housing prices on the global market

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The report shows that 82% of the surveyed markets recorded annual price growth in Q1 2024. This is the best result since Q4 2022. On a quarterly basis, 67% of markets recorded price growth – the strongest since Q3 2022.

Taking into account inflationproperty prices fell by 0.4 percent in the 12 months to March this year. “Real annual price growth is now 3.3 percent below the long-term average of 2.9 percent,” it said.

It was reported that Türkiye recorded an increase of 9.9 percent in real annual price growth despite a 52 percent nominal increase, and Poland is one of six of the 56 countries analyzed (along with Turkey, Bulgaria, Columbia, Taiwan and Greece), where price increases reached double-digits.

Australian Market with a 7.5% increase in the last 12 months, has recorded a strong turnaround since last year when prices were under pressure from rising interest rates. Prices have fallen 1% in the past three months, however. “The United States posted strong growth of 6.5%, with prices rising 1.9% over the past quarter, supported by low inventory levels, even as borrowing costs weigh on the market,” it said.

According to the experts from Knight Frank, “an increase of 1.6% in Great Britain in Q1 means a further slowdown as high debt costs limit affordability.”

European markets account for eight of the eleven countries reporting price declines, with France (-5.2%) and Germany (-3.9%) are feeling the effects of the recent slowdown in economic growth and high inflation.

The report emphasized that Hong Kong has lagged other key global markets, with prices down 11.6% over the past 12 months. “A slower economy has led to a revaluation of the market,” it said.

About the study

The residential markets analyzed by Knight Frank are: Turkey, Bulgaria, Poland, Colombia, Taiwan, Greece, Mexico, Croatia, Estonia, Australia, Ireland, Iceland, Malta, Portugal, USA, Slovenia, Canada, Brazil, Cyprus, Netherlands, Singapore, North Macedonia, Japan, Spain, Ukraine, India, Hungary, Romania, BelgiumDenmark, South Korea, Sweden, Israel, New ZealandIndonesia, Italy, Great BritainNorway, Latvia, South Africa, Chile, Morocco, Malaysia, Sweden, Lithuania, Peru, Czech Republic, Austria, China, Germany, France, Slovakia, Jersey, Finland, Hong Kong and Luxembourg.

Knight Frank LLP is a London-based real estate advisor with over 25,000 employees in 600 offices in 60 countries.

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