Poland's next property boom

Tim Hill:

a vast number of new apartments awaiting buyers are the wrong type of apartments. Studios and one-bedroom apartments are, as ever, in demand by young professionals getting onto the housing ladder, but the two-, three- and four-bedroom apartments currently in the supply chain are proving of little interest – a classic mismatch in the market.

andy b:

the banks need to start lending again to both individuals and developers.

scorpioThreads: 26 Posts: 196 Joined: Nov 15, 07	Edited by: scorpio Jul 29, 09, 10:47 / #
Interesting article entitled "Poland's Next propety boom" recently in the Warsaw Business Journal, written by Tim Hill who is the operations director for Mamdom. It still surprises me that these opinions never seem to reflect the prices of real property (land, forest, pastures, small and large farms, etc.). They only focus on flat prices in large cities. I do agree that property prices will start to rise again in all sectors, especially for agricultural properties and farms. Overall, Mr. Hill expressed a fair opinion.

andy bThreads: 6 Posts: 195 Joined: Nov 26, 07	Jul 29, 09, 12:04 / #
Hi Scorpio, I already posted a link to this article in the following thread: http://www.polishforums.com/real-estate-poland-20/it-good-time-invest- polish-real-estate-35288/ I hope you and Mr Hill are right, but as I commented in the other thread, for the property market to improve in Poland, the banks need to start lending again to both individuals and developers. On the same topic here is a news item someone sent me a few days ago: Less new homes next year POLAND The number of new homes built in Poland by the end of the year is to grow 5-10 pct on 2008’s figures, according to the Polish Association of Developers. The number of new residences is expected to come to 170-180,000, whereas the figure for 2010 is predicted to decline by 10-20. In 2011, according to the Association, the number of new dwellings will be down by additional 20 pct in comparison to the 2010 figures. According to data by the Polish Central Statistical Office (GUS) in H1 76,018 homes came onto the market – almost 10 pct more than H1 2008. In the first six months of the year, construction work on 67,840 units started – a 28.3 pct decrease y-o-y. The number of building permits was also significantly down in H1 2009, with 90,357 permits issued in the period – a 21.4 pct decrease y-o-y. (Source: PAP)

Wroclaw BoyThreads: 56 Posts: 5,267 Joined: Jul 3, 09 MEMBER	Jul 29, 09, 12:10 / #
scorpio: Overall, Mr. Hill expressed a fair opinion. Interesting, initially i was going to quote that Tim Hill never has a bad word to say against Polish property and that still is the case, never the less the article rang true on a number of issues. Especially: Firstly, a vast number of new apartments awaiting buyers are the wrong type of apartments. Studios and one-bedroom apartments are, as ever, in demand by young professionals getting onto the housing ladder, but the two-, three- and four-bedroom apartments currently in the supply chain are proving of little interest – a classic mismatch in the market.

SeanBMThreads: 41 Posts: 8,647 Joined: Mar 10, 08	Edited by: SeanBM Jul 29, 09, 12:13 / #
Tim Hill: a vast number of new apartments awaiting buyers are the wrong type of apartments. Studios and one-bedroom apartments are, as ever, in demand by young professionals getting onto the housing ladder, but the two-, three- and four-bedroom apartments currently in the supply chain are proving of little interest – a classic mismatch in the market. That has always been the case. andy b: the banks need to start lending again to both individuals and developers. Hit the nail on the head.

scorpioThreads: 26 Posts: 196 Joined: Nov 15, 07	Jul 30, 09, 08:29 / #
andy b: I already posted a link to this article Thanks for letting me know! I must have overlooked it, sorry about that. These types of articles only seem to focus on 'flats', and this alone doesn't truly represent the entire real estate market in any country. Each sector of the market must be analyzed separately, and not lumped into one. Flats, Building plots under 1 hectare, Farmland exceeding 1 hectare, Farms with buildings which include arable land, forests, commercial property, etc. Not all of these sectors perform equally.