Speculators who bought off-plan to capitalize on the large gains seen by the Polish property market are now starting to sell up and move on.
A large number of investors who entered into initial purchase agreements for apartments under construction now want to sell those rights. Analysts believe that up to 20% of apartments bought over the past year in large cities were speculative investments. If large foreign investors also decide to sell their properties, the prices of new apartments may start to go down after two years of an unprecedented rally.
In related news, apartment prices rose in most cities in July after a brief period of stabilization. According to an Open Finance report, in Warsaw the average price was PLN 8,775 per square meter, up 2.7% from June. The average value of a mortgage loan in Warsaw was PLN 482,000.
