Poland Survey: 12.9% of developers expect price increases, majority predict stabilization

A recent survey indicates that 12.9% of developers anticipate further price increases in the real estate market, while a substantial 77% expect prices to stabilize, according to data from redNet24 and tabelaofert.pl. The proportion of developers predicting price decreases has been rising for the past four months, though it currently stands at just 9.9%.

The Developers’ Mood Index, compiled by tabelaofert.pl’s analysis department, surveyed over 200 development companies across Poland. The index highlights a growing expectation among developers for price reductions, though these are likely to manifest as periodic discounts on select properties, according to Robert Chojnacki, founder of Tabelaofert.pl.

While some developers foresee price hikes, this view has remained steady at 12.9% for three months. The prevailing expectation, however, is that prices will hold steady. Chojnacki emphasized that maintaining current price levels is anticipated by 77% of respondents.

In terms of sales activity, the situation remains mixed. August saw a modest improvement in the sales rate indicator, which returned to positive territory at 0.14 points. Katarzyna Tworska, managing director at redNet24, attributed this uptick to the seasonal return of buyers post-holiday and increased market activity.

The proportion of developers expecting sales increases has risen to nearly 29%, the highest in four months. Despite ongoing uncertainties regarding the housing program, some developers remain optimistic. Ewa Palus, principal analyst at Rednet Property Group, noted that anticipated changes to the housing scheme may not be imminent, leading some buyers to proceed with purchases now rather than wait.

Current developer pricing and sales strategies suggest that market impact from proposed housing programs has diminished. Developers appear to be adapting to current market conditions, planning future projects based on existing price levels.

Customer sentiment mirrors this outlook, with 84% maintaining belief that prices will not fall. While the largest group of customers (47%) expects stability in the near term, a growing number (37%) anticipate price increases, up from 33% last month.

Source: redNet24, tabelaofert.pl and ISBnews