Housing market fares better than before pandemic

“The situation of the housing market is already better than before the epidemic,” Heritage Real Estate (HRE) think-thank estimated, identifying this phenomenon as an instance of catching up and hard data showing an improvement in the real economy.

According to HRE scenarios, the situation in the coming quarters will be “good”, “very good” or even “too good”.

The first scenario, as envisaged by HRE CEO Michał Cebula, would see developers successfully satisfying Pole’s housing demands, which in turn would prevent the excessive growth of real estate prices.

“However, the risk of the third scenario unfolding is quite realistic. This would result in demand outstripping supply. Flats would become expensive to the point when the prices would cool down buyers’ ambitions,” he said, adding that no one would really want to see this about.

“Contrary to the common belief, developers wouldn’t like that either, at least those who look at the market in the long-term and responsibly. There’s meagre profit in raising prices only once in order to achieve a higher margin as it is done at the expense of the number of sold flats,” he said.

The CEO added that excessive spike in prices leads to tensions that inevitably would lead to the overheating of the sector. According to Mr Cebula, such a scenario is not doomed to happen.