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Undeveloped plots enjoy record popularity on the real estate market

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In 2020, a new record for the sale of undeveloped plots was broken, according to a study by GetHome. 141.3 thousand of them were purchased, which means an increase of 17 percent on an annual basis. Experts explain that, in addition to the pandemic, the growing interest in them is driven by rising housing prices.

In 2020, over 141.3 thous. transactions concerning undeveloped plots – GetHome informed, citing data from the Central Statistical Office. It’s about 17 percent. more than a year ago, as well as a new record on the plot market – the company noted.


Increase in sales of undeveloped plots – what contributed to the results?

According to the data of the Ministry of Justice, only less than half of all transactions concern building plots. “These were also sold in 2020, the largest number in the history of our real estate market” – emphasized the report. The information provided by GetHome shows that last year there were 61.9 thousand jobs. transactions involving such plots of land.

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Based on GUS data, GetHome reported that the number of plots of land sold for housing development in 2020 is 24.4 thousand.

Real estate market analyst from GetHome Marek Wielgo estimated that the increase in demand for residential plots already took place in 2017, when it amounted to 29%. – COVID-19 was not the only factor contributing to the boom on the plot market – the expert assessed.

During the pandemic, he added, many Poles decided that it was safer to live or rest in a house with a plot of land than in an apartment in a block of flats. In many industries, the pandemic has also forced remote work, and the home provides greater comfort – noted the Wielgo.

The GetHome report indicates that this phenomenon is already visible in the construction statistics of the Central Statistical Office.

“In the first half of 2021, individual investors obtained permits or reported the construction of nearly 60.4 thousand apartments (mainly single-family houses). This is as much as 29 percent more than in the corresponding period of 2020.” – attention was drawn.

As it was added, the number of houses built systematically increased already in previous years.

Real estate – when will plot prices fall?

According to the company, for many Poles, a house is a cheaper alternative to rapidly expensive apartments, while single-family housing is developing most in towns surrounding large cities.

In its report, GetHome assessed that in the coming years we should not expect a drop in the prices of plots of this type, because in towns near large cities, the purchase of a building plot may already be too much of an expense compared to the purchase of a large apartment.

– Plots for single-family housing at a price of several million zlotys are not uncommon in Warsaw. Unfortunately, the supply of attractive plots of land is smaller than in previous years – said Wielgo.

Main photo source: Shutterstock

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