Real estate prices rose drastically from 2002 to 2008 in

Poland Poland, officially the Republic of Poland, is a country in Central Europe. It is divided into 16 administrative provinces called voivodeships, covering an area of . Poland has a population of over 38 million and is the fifth-most populou ...

. Between June 2006 and June 2007 the average price of one square metre of residential area in

Warsaw Warsaw ( pl, Warszawa, ), officially the Capital City of Warsaw,, abbreviation: ''m.st. Warszawa'' is the capital and largest city of Poland. The metropolis stands on the River Vistula in east-central Poland, and its population is officiall ...

rose from 6,683 PLN (1,636 EUR) to 9,540 PLN (2,519 EUR), or 50% in

euro The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...

terms.Prices of flats in Warsaw
Real Estate Statistics - 2007: Retrieved 4 November 2013 A peak in prices occurred in autumn 2008 as the average price of a square meter of residential space in

started to drop by 5% in nominal terms or 10% per year in real terms. Recent history of Polish housing
House Price History in Poland from 2002 to 2013: Retrieved on 4 November 2013 In

, Poland's capital city, the average price per square meter declined from 9,000 PLN (2,500 EUR) in 2008 to 7,400 PLN (1,850 EUR) in 2013.Prices of flats in Warsaw in square meters
Retrieved on 4 November 2013 In early 2007, it can be argued that the Polish property market began to show the early signs of a

property bubble A real-estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real-estate markets, and typically follow a land boom. A land boom is the rapid increa ...

: * banks increased

loan In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that ...

periods from 30 to 50 years to extend credit limits; * an increasing uptake of debt in family budgets; * increasing interest rates; * the

Polish economy The economy of Poland is an industrialized, mixed economy with a developed market that serves as the sixth-largest in the European Union by nominal GDP and fifth-largest by GDP (PPP). Poland boasts extensive public services characteristic ...

showing signs of overheating in a reduction of the GDP growth rate to 1.5%; and * a stagnation of prices and dramatic drop of sales in a long period of time with dynamically increasing supply of residential properties. As of 2013, house prices in Poland have been falling since mid-2008. Compared to pre-crisis peaks: *House prices in

are down by 13.1% *In Krakow, house prices are down by 17.9% *In Poznan, house prices have fallen by 28% *In

Gdańsk Gdańsk ( , also ; ; csb, Gduńsk;Stefan Ramułt, ''Słownik języka pomorskiego, czyli kaszubskiego'', Kraków 1893, Gdańsk 2003, ISBN 83-87408-64-6. , Johann Georg Theodor Grässe, ''Orbis latinus oder Verzeichniss der lateinischen Benen ...

, house prices plunged by 27% *In Lodz, property prices plummeted by 35.7% The arguments for further real estate price rises or stabilization are: * a rapid increase of salaries - around 8% per year; * low figures of both

housing estate A housing estate (or sometimes housing complex or housing development) is a group of homes and other buildings built together as a single development. The exact form may vary from country to country. Popular throughout the United States ...

area and apartments per person, compared to other developed countries worldwide; * money repatriated by Poles who have emigrated; * rapid

urbanization Urbanization (or urbanisation) refers to the population shift from rural to urban areas, the corresponding decrease in the proportion of people living in rural areas, and the ways in which societies adapt to this change. It is predominantly th ...

- the population of rural areas and small towns is declining rapidly, while the population of major urban areas is increasing quickly; In addition, Warsaw has a population of only 2 million people – approximately 5% of the whole of the country – which is very low for a capital city.Property Investment Index By Country
Retrieved on Nov.4, 2013 Poland is also one of many countries with a rather high house price to income ratio (13.58) and an estimated rental profitability between 3.92% to 4.31% for residential units.

References

External links

Recent history of the Polish housing market
{{DEFAULTSORT:Polish Property Bubble Economic history of Poland Real estate bubbles of the 2000s

See also

References

External links