The government program Safe Loan 2% is often mentioned as one of the reasons for the increase in apartment prices. However, it is not the only factor strongly influencing the setting of property rates. What other elements affect the housing market? What else impacts the costs associated with building apartments? These are questions RynekPierwotny.pl asked representatives of development companies.
Bartosz Kuźniar, Board President of Lokum Developer, said that apartment prices are dependent on several factors, the largest of which is the cost of production. The implementation process of a development project is complex and time-consuming, requiring a substantial financial outlay. Firstly – the purchase of land, where land shortages with building permits or covered by the local spatial development plan push up their prices.
Angelika Kliś, Board Member of ATAL, noted that the current supply of apartments greatly affects their prices. There are now far fewer offers on the market, especially for ‘ready-made’ apartments in the popular segment, with smaller square footage and in large urban centers like Warsaw or Krakow.
Maciej Jurczak, P. O. Sales and Customer Service Manager at PROFBUD, explained that prices for apartments on the primary market change very dynamically. This of course is due to several reasons. Firstly, the ongoing low supply, disproportionately decreasing in relation to high demand.
Katarzyna Unold, Managing Director of ACCIONA in Poland, stressed that currently, the biggest influence on apartment prices comes from rising land prices.
Tomasz Kaleta, Sales Department Director, Develia S.A., noted that currently, there are no market indicators that would suggest a fall in apartment prices.
Małgorzyna Wiśniewska, Sales Director at Cordia Polska, pointed out that many factors are currently influencing the formation of apartment prices. One of them is naturally inflation, which has been particularly felt in the construction industry in the long term.
Paweł Muchowicz, Sales Director of YIT Polska, expressed that the shaping of apartment prices is a complex process, with many factors playing a part. Among them, the main roles are played by the purchase price of the land, construction costs or margins.
Aleksandra Goller, Director of Sales and Marketing, Skanska Residential Development Poland, stated that apartment prices in Poland are increasing every year, influenced by many factors, such as labor costs, and also construction material prices.
Cezary Grabowski, Director of Sales and Marketing, Bouygues Immobilier Polska, emphasized that each of these factors has a real impact on apartment prices. The key to the total amount a client must pay for an apartment are mainly the costs of the general contractors associated with building the apartments, and these are constantly increasing.
Andrzej Gutowski, Vice President, Sales Director at RONSON Development, concluded that real estate prices are largely shaped by the current supply and demand imbalance created by subsequent support programs, with the Safe Loan 2% at the forefront.
Małgorzyna Ostrowska, Marketing and Sales Division Director at J.W. Construction, reminded us of the key influencers on apartment prices such as labor costs, construction materials, and the ongoing double-digit inflation that’s been seen since March 2022.
