2018-03-26 | Trends on development market in 2018

After a good year in housing industry the following one is going to be full of changes. The end of the year confirms the tendency in price rise of apartments. In Q4 of 2017 in biggest cities approximately 19 thousand of apartments were sold that is more than in Q1, which was supposed to be record.

Warsaw remains a leader with its sale of 29 thousand apartments a year. The optimistic fact is achievement of   the record sale by almost each region. The most significant increase was in Łódź- over 36% dynamics  in combination with  a very high increase of  supply (almost 50%) is an unparalleled result . This kind of data gives optimism to 2018 year because more and more developers cannot keep the pace with a demand.

There is a widespread optimism  among potential purchasers. The economic data are optimistic as well, economy is growing and with it - remuneration and availability of mortgages.

The only danger might be seen in accessibility of plots for investments, prolonged administrative procedures and implementation cost rising dynamically.  The reason for this situation are mainly infrastructural investments. High expenditures on construction works and modernization of roads and expansion of the railway lines are plans for 2018 year and the following ones. The rule of demand and supply works here and such significant investments just “suck” the contractors out of the market, and the ones, who still have implementation capacities impose tough conditions.

Taking under consideration  the housing market in 2018 it is impossible to pass the MDM program. The interest of the program was so huge that funds of the last pool of the governmental program was allocated on the second day of acceptance of applications. The program has a huge impact on the shaping of the housing market for example by price growth inhibition. The termination of the program caused the increase of prices in Q3 of 2017.

By the sale dynamics and the traffic of volume the power of market is expressed.  Some retardation might take place, but the situation, thanks to maturity of developers, shapes optimistically.

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