Poland’s property market set to perk up in 2014
The Polish property market will see improvements next year, as strong economic growth begins to boost demand and government programs promote home buying, according to a report by Property Investor Europe.
Warsaw, the country’s Capital, will introduce a program to provide grants to young people, in an attempt to make mortgage obtainment easier.
The program, named Home for the Young, is to be introduced in January 2014.
Low interest rates are also set to attract investors, according to residential advisor REAS.
The firm predict that they may drop to the lowest level since the beginning of the transformation period.
If all of the above occurs, “the year 2014 might bring massive investment in the Polish residential market,” said REAS.
This year however, the market is expected to weaken owing to slower economic growth and the end of the government’s ‘Family’s Own Home’ program.
Prices fell by 1.5% in 2012, and are likely to fall even further this year due to fears over unemployment and bank scepticism over mortgage loans.
Under the ‘Family’s Own Home’ project, over 30,600 apartments were sold last year – a 3% increase compared to 2011 in the country’s six main markets.
Developers could face liquidity problems as a result, say REAS – they may have to sell stock at significantly lower prices.
Development could also see an increase in consolidation.