With easier access to credit, Poles are buying more bigger three-room apartments and less small studios according to the latest research.
More and more buyers are interested in bigger, higher standard flats on Warsaw’s second hand market. The most sought-after properties are 31 m² to 50 m² in size and account for 41% of all real estate transactions, according to Puls Biznesu, citing data from the Polanowscy Real Estate Agency. Only 15% of sales are for flats smaller than 30 m², i.e. 6% down on the first half of 2006. On the other hand, large flats are increasing in popularity – 20% of buyers want properties more than 70 m². According to the Agency’s figures, two- and three-room flats are currently the most in demand, representing 37% and 29% of all units on Warsaw’s second hand market. Rising prices have increased the supply of available real estate and the increase in the average metric area of a flat in square metres has led to more and more three-room flats appearing on the market, i.e. approx. 40% of all offers in the first six months of 2007. According to data provided by the agency, the quality of flats up for sale is also improving. Flats in prefabricated concrete blocks currently account for 26% of all offers while just a few years ago they dominated the market. Flats located in brick buildings now represent the biggest category. More and more Poles are buying flats financed through bank loans – in H1 2007 they made up 71% of the total, as against 62% in 2006. In the opinion of agents, the increase in supply and the drop in demand caused by the upward curve in prices has meant that owners are now more inclined to negotiate. Currently, the actual price paid by the buyer is on average 3% below the starting price, whereas in the first half of 2006 the equivalent figure was 2%. The actual price is expected to fall even further in H2 and as a result the indicator may even rise to as high as 5% as large numbers of foreign investors try to sell their assets. This may happen if price growth per square metre in Warsaw is checked.
