Demand for apartments in the capital exceeds supply, availability is falling and prices are rising. At the end of mid-2021, for the first time in history, the price of an sq m of an apartment on offer in Warsaw exceeded PLN 12,000 (EUR 2,638) and was 7.8% higher than at the end of 2020, according to the data from redNet Property Group and CBRE.
As many as 12,800 premises found their owners, which is almost a third more than in the previous six months. At the same time, the number of apartments for sale decreased by 30.2%. Experts indicate that if the demand remains at such a high level in the coming months, the currently available premises will be absorbed by the market in six months.
In Warsaw, from January to June this year, developers introduced 9,892 flats to the market. This is 22.3% more than in the same period last year when the market was most affected by the effects of the pandemic. However, this was not enough to meet the demand. At the end of the first half of 2021, the offer included 11,300 dwellings, i.e. 30.2% less y/y and 21.1% less than six months earlier.
The price of a sq m of an apartment on offer in Poznań increased by 2% y/y and in Kraków - by over 12% y/y. The only market where the prices have not increased is Tricity (they fell by 2% y/y). However, when compared with the first quarter of 2021, the increase is visible in all markets.
Flats remaining in the developers' offer at the end of the second quarter cost 4% more than those which were on offer three months earlier. "If the demand remains at the current level, the prices of the apartments are likely to increase again in the next quarter," estimate analysts from JLL.
The second most expensive apartments are currently in Kraków (PLN 10,800 PLN or EUR 2,374 per sq m). The Tri-City fell to the third place (PLN 10.500 or EUR 2,308 per sq m).
At the same time, the developers' offer includes fewer completed apartments- in the second quarter they constituted only 10% of the total offers - the least since the first quarter of 2020.