Foreign buyers keeping housing market buoyant: report

Foreign buyers bought 46% more properties in Poland in 2018 and the average size is 15% larger, according to a report by a property investment fund.

Over 7,000 properties were purchased by foreigners last year, of which a third were taken up by Ukrainians, who bought over 110,000 sq m last year, which was an increase of nearly 30,000 sq. m on their purchases last year.

According to the authors of the report at HRE Investments, who sourced their data from the Interior Ministry, the latest trend in the market is that foreign property funds are buying properties with a view to letting them, with German companies to the fore in this respect. Corporate buyers from Poland’s western neighbours bought up 14,000 sq m of property in 2018, compared to 2.6 sq m.

There were concerns that the property boom in Poland, which has seen large increases in development over the past few years, may have been coming to an end. However, it appears that the output figures for Poland’s largest developers listed on the Warsaw stock market for the second quarter of 2019 do not indicate either a significant slowdown in development or a drop in prices.

Overall developer sales in H1 2019

Overall, the listed firms sold around 12,300 flats in the first 6 months of this year, which was 3.5 percent less than the same period in 2018, but the second quarter sales were healthier than in the first half of last year, with the keys of 6,160 flats being handed over.

Experts at RynekPierwotny.pl, a property website, consider that while the boom may be over, the market is still likely to be healthy going forward. Meanwhile, Bartosz Turek at HRE thinks it is likely that Belarusians may be the third largest group of buyers this year, as interest in purchases in Poland increases.

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