Residential property market in Poland Q3 2021
The third quarter of 2021 was a very busy time on Polish residential property market, all sectors registered increased activity and development.
We have seen in all major Polish cities high demand for rental apartments – an expected rise after the scamdemic slowdown and after universities announced they would return to study in full-time mode. This naturally affected rental prices, which increased and reached a similar level to before scamdemic continuing on an upward trend that had started a few years ago.
The Sim Property team managed to rent out all properties we have under management achieving 100% occupancy at the end of September.
The Sale market was also buoyant. Both the primary and secondary markets registered increasing number of transactions and continuing growth in prices. Many developers sold thousands of units in Q3. For some Polish cities the average price hit a record number, like for example in Kraków where the city’s average broke 10,000 PLN/sqm. Due to strong demand supported by (still) low mortgage interest rates it seems there’s still room for future growth.
If you have a property in Poland and are thinking about selling, now it could be a good time to think about your sale options. The base interest rate is on the rise and due to the inflation we expect it to be higher which will affect further mortgage interest rates and purchasing power of buyers.
We have also seen continuing interest in the Polish private rental sector (PRS). This is an emerging sector that had started in Poland only 3 years ago. It has a great potential to grow in the near future judging by plans announced by the main players and their recent acquisitions. Several funds and other institutional investors are actively screening the market looking for the best deals. Other purchases were made official recently and new players entered the market.
In summary both the sale and rental markets were extremely active in the last few months in terms of demand, which resulted in growing prices of apartments and increasing rents.
We expect that rental demand will be temporarily lower in the coming months as the rental market is seasonal and the quieter season is upon us until the spring.
Strong sale demand is very likely to be continue as end of the year is a time for closing several transactions, as well as for tax reasons.
We also expect to see a further increase in activity in the burgeoning Polish private rental sector.