Real estate prices rose drastically from 2002 to 2008 in

Poland Poland, officially the Republic of Poland, is a country in Central Europe. It extends from the Baltic Sea in the north to the Sudetes and Carpathian Mountains in the south, bordered by Lithuania and Russia to the northeast, Belarus and Ukrai ...

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

Warsaw Warsaw, officially the Capital City of Warsaw, is the capital and List of cities and towns in Poland, largest city of Poland. The metropolis stands on the Vistula, River Vistula in east-central Poland. Its population is officially estimated at ...

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

euro The euro (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the ...

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 Poland 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 Warsaw, 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: * banks increased

loan In finance, a loan is the tender of money by one party to another with an agreement to pay it back. The recipient, or borrower, incurs a debt and is usually required to pay interest for the use of the money. The document evidencing the deb ...

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

Kraków , officially the Royal Capital City of Kraków, is the List of cities and towns in Poland, second-largest and one of the oldest cities in Poland. Situated on the Vistula River in Lesser Poland Voivodeship, the city has a population of 804,237 ...

, house prices are down by 17.9% *In

Poznań Poznań ( ) is a city on the Warta, River Warta in west Poland, within the Greater Poland region. The city is an important cultural and business center and one of Poland's most populous regions with many regional customs such as Saint John's ...

, house prices have fallen by 28% *In

Gdańsk Gdańsk is a city on the Baltic Sea, Baltic coast of northern Poland, and the capital of the Pomeranian Voivodeship. With a population of 486,492, Data for territorial unit 2261000. it is Poland's sixth-largest city and principal seaport. Gdań ...

, house prices plunged by 27% *In

Łódź Łódź is a city in central Poland and a former industrial centre. It is the capital of Łódź Voivodeship, and is located south-west of Warsaw. Łódź has a population of 655,279, making it the country's List of cities and towns in Polan ...

, 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, housing development, subdivision (land), subdivision or community) is a group of homes and other buildings built together as a single development. The exact form may vary from country to count ...

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

urbanization Urbanization (or urbanisation in British English) is the population shift from Rural area, 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. ...

- 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
{{Financial bubbles Economic history of Poland Real estate bubbles of the 2000s