Housing prices in 2023

What will be the prices of flats in Poland at the beginning of 2023? The prices of new and second-hand flats have decreased slightly. The cheapest flats are currently in Częstochowa, Szczecin and Toruń. New flats in Gdańsk and Katowice have also become cheaper. Where are the most expensive places to live? What is the current price per square metre of a flat?

In most cases, however, the decreases are small, the analysts point out in the report. On average, prices have fallen by 2.6 per cent since May 2022. The biggest discount is in Częstochowa, where the average price is PLN 5,946 per m2, 10 per cent less than in May 2022.

 

Where will you pay the most for housing?

According to research by Rynekpierwotny.pl, the average price per m2 in Warsaw in March 2023 was the highest, based on 90% of tracked new residential properties in Poland. It came out at PLN 13,870. Kraków and Wrocław ranked second and third with prices more than PLN 1,500 lower, with 1 m2 of a flat costing an average of PLN 12,242 and PLN 12,207. A new flat in the Tricity was cheaper. On average, one has to pay PLN 11,730 per m2. It was much cheaper in Poznań, where the average cost was PLN 10,326. On the other hand, we can buy a flat in Łódź - 1 of the 6 major Polish cities - for around 9,600 PLN per m2.

In Warsaw, Poznań and Wrocław, the average price of flats offered by developers increased slightly compared to the previous year. Slightly weaker increases were in Gdańsk and Katowice. Such high average prices for new flats are due, among other things, to changes in developers' offers. Inflation, rising interest rates and a lack of creditworthiness certainly have an impact on the high prices of flats. Developers have offered premium flats with high prices per square metre (even exceeding PLN 20,000) to the market in, for example, Warsaw and Poznań. As a result, the average price in these two cities increased significantly in March compared to January this year. However, the average price of a flat on the primary market has fallen slightly (1-2%).

Which city has the cheapest housing

 Housing prices have been falling slightly since the beginning of 2023 (although there was a slight increase in December 2022). According to a survey conducted by Expander and Rentier.io using data from 17 locations, housing prices have fallen by an average of 2.6% since May 2022, when they were the highest on record. Prices fell in 10 of 17 cities compared to December 2022 and in 14 of 17 cities compared to May. In Częstochowa, flats are cheaper by 10% compared to May 2022, and in Szczecin and Toruń by 6%.

The secondary market and housing prices

In most places, prices of second-hand flats are lower than prices of new flats from developers. This segment of the market has stabilised over the past three months. According to statistics from BIG Statistics Rynekpierwotny.pl, the average price per square metre in Katowice increased by 2% in February, and by 1% in Kraków and Wrocław.

The remaining cities showed no significant changes. In February 2023, the highest prices per square metre on the secondary market were recorded for flats in Warsaw (PLN 14,901 on average), Gdańsk (PLN 12,955) and Kraków (PLN 12,895). The cheapest flats are in Katowice and Łódź (PLN 7112 and PLN 7239 respectively). Perhaps this is because they are often in old tenements whose technical condition leaves much to be desired.

Forecasts for the property market and housing prices

The outlook for the property market in 2023 is difficult to predict due to the uncertainty of the current economic climate. However, with economic and demographic growth expected, there is potential for a positive outlook. Many experts believe that the market will remain strong and prices are likely to continue to rise, albeit at a slower pace than in recent years. In addition, new technologies such as automation and artificial intelligence could significantly impact the industry and lead to increased innovation and productivity.

Everyone is pinning their hopes on the government's new Credit 2% project (due to launch in July) to revive the housing market. It's a proposal for young people buying their first home to reduce instalments on a 10-year home loan to 2% (the budget will cover the difference). Together with increasing access to credit, it could make many able to afford to buy a flat again.