Real flat prices on the secondary market in selected cities in Poland

Abstract

The paper presents the shaping of average flat prices on the secondary market in selected cities in Poland in the years 2006–2020. In this period, the subsequent phases of price shaping were: price increase, correction, stabilisation and another increase. The aim of the research discussed in this paper is to assess the differences between housing prices made real on the basis of the following indices: inflation, salary growth, and increasing creditworthiness. The study also focuses on the assessment of the consequences of the above-mentioned differences for the shaping of the housing market. The analysis was performed on the basis of public data from Statistics Poland and the National Bank of Poland. The research demonstrates that despite nominal increases in flat prices, they are available relatively easily. This is thanks to increasing average salaries and buyers’ creditworthiness, and the fact the market is able to accept housing prices adjusted by the creditworthiness indicator at a record-high level.

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“…Inflation, increases in the price of building materials, increases in the price of building services, increases in the price of land for construction, increases in the income of the population, annual increases in the minimum wage, insufficient supply of housing are a set of factors that can significantly drive up prices (Zbyrowski, 2022). Rising interest rates, more expensive credit to buy property, depopulation of the population, uncertainty about the pandemic situation -are a set of factors that could slow down price growth or reduce prices (Kokot, 2022). Table 1 shows the average prices per square meter of a residential unit (unit prices) in the provincial capitals in Poland in each quarter of 2019-2021. that the radical impact incurred by the outbreak of the COVID-19 pandemic has shaped new consumer attitudes toward real estate.…”