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Real estate market, primary, secondary and premium markets. Commentary by Katarzyna Rogoźnicka, Economic Advisory Center Kiżuk & Michalska

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Now is the buyer’s time rather than the seller’s, and there are not too many buyers anyway, said economic adviser Katarzyna Rogoźnicka, referring to the situation on the real estate market. In her opinion, the premium market has no problems.

– We have noticed a big downtime – Katarzyna Rogoźnicka from Szczecin Economic Advisory Center Kiżuk & Michalska commented on the situation on the real estate market in the Zachodniopomorskie Voivodeship.

– Properties are not selling or are selling less than last year. Many people who had creditworthiness several months ago now have less or no creditworthiness at the moment, she emphasized. She added that some real estate brokers suspended their activities last year due to the lack of buyers.

Developers “relentless” on the price

As she pointed out, prices on the development market have not fallen, but they are not rising either. For an apartment in Szczecin in a developer standard – she added – you have to pay at least PLN 8.5 thousand. PLN per square meter, and in the case of new investments in attractive locations, eg on the Odra River, prices start from PLN 12.5 thousand. PLN per square meter. – Here, developers are adamant, they do not lower the price, but there is a tendency to offer additional benefits, such as a higher standard, bathroom finishing or the entire turnkey apartment – said Rogoźnicka. On the secondary market, apartment owners decide to slightly reduce prices, and according to the predictions of some property appraisers, prices may soon reach the level of four years ago. Flats put up for sale usually cannot find buyers for a long time.

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“Cheap real estate? Unfortunately, this is wishful thinking”

According to the expert’s predictions, it is possible that more apartments from the secondary market will be available in the spring – their owners may decide to sell due to their difficult financial situation. – Recently, a gentleman who has two apartments was looking for advice from us – he rented one, treating it as a kind of security for the property retirementand lives in the other. He decided to sell the former because of the very high cost of the loan, he just wanted to get rid of this loan – said Rogoźnicka. She added that, on the other hand, there are currently clients who are looking for real estate for approx. PLN 200,000. PLN, although two years ago the average transaction price for a property in Szczecin was PLN 300-350 thousand. zloty. – And even for the same price as two years ago, we will not buy such a property as then. Especially for 200,000 zlotys. But clients have no money or creditworthiness, perhaps they are trying to find some ‘secret source’ of cheap real estate. Unfortunately, this is wishful thinking, she said.

Premium real estate without problems

There are no problems, she added, on the premium market, i.e. in Zachodniopomorskie, mainly apartments on the Baltic Sea. They are intended for buyers who are not only not afraid of the crisis, but often make money from it. Price 20 thousand. PLN per square meter for an apartment with a sea view is acceptable for these people, and in this case there are no predictions as to the fluctuations in the prices of these properties. According to the expert, when it comes to housing prices outside the “premium” group, the situation in the voivodeship is comparable to the whole country, excluding the largest agglomerations. – We are no exception. In my opinion, now is the time of the buyer rather than the seller, and there are not many buyers anyway. Therefore, they know that the seller needs them. Two years ago it was the other way around, Rogoźnicka pointed out. She added that sellers have “wishful habits from 2020” and the belief that there is a queue of people willing to sell an apartment, which means that they “expect amounts that are currently unrealistic”. – There are situations when an apartment in a tenement house for renovation was expected to cost about PLN 8,000 per square meter. Currently, however, as property appraisers admit, the maximum price for such a property is about PLN 6.5 thousand, the expert noted.

Read also: New property tax. Prime Minister’s Announcement

Main photo source: Shutterstock

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