In 2021, the total number of flats sold by developers nationwide hit a record high of 165,000, and property prices in Poland's six largest cities rose by 17 percent year on year, according to the study by the Polish Association of Developers.
Forecasts for 2022 suggest prices will continue rising, but at a slower rate than last year.
A shrinking supply of new flats will pose a problem in bigger cities where the total number of apartments available for purchase plummeted by 20 percent in December, compared to the same month of 2020, the Polish Association of Developers said in a report.
A shortage of building lots, coupled with red tape, is expected to be one of the main reasons for future price hikes in larger municipal areas.
In smaller towns, meanwhile, the real estate market will gather steam, though apartment prices will continue to climb amid soaring inflation, according to the Polish Association of Developers.
To address the problem, new rules are needed to ease the conversion of land into residential lots, the report said.
Despite the coronavirus pandemic, builders in Poland completed around 234,700 new dwellings last year, 6.3 percent more than in 2020, the country’s Central Statistical Office (GUS) reported in January.
There is still a shortage of around 2 million housing units in Poland, according to some real estate experts.
(pmi/gs)
Source: PAP