There building all over the parks in Wroclaw too, thats Poland for you
Ok, I'm actually living in Wroclaw. Tell me exactly in which park did you see any building site? In fact I can't think about anything like that in past ten years...
As much as you would like it, nobody is going to produce anything at less than cost price, that includes the food you eat.
You are certainly right. But take into consideration that in bubble years 50% profit was normal thing for developers in Poland. They will not do anything for free for sure, but they certainly will take 15% profit...
Ask the french dairy farmers how this system works.
Farmers have subsidies which artificially keeps floor in that market.
Polish real estate market has "familily on their own" (nickname: "family on mine" :-) )
which is subsidy for interests on mortgage, which artificially keeps floor in real estate market. The problem is that due to budget deficit goverment plan is to limit that program in the next year.
Don't get me wrong, I don't say that there will be some big crash or something. I'm saying that it is highly unlikely to see another bubble growth in next two/three years.