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The residential market remains very robust. Land prices are also rising. In May 2019, the largest number of apartments completed was recorded in Warsaw. In Rzeszow, the largest number of units was commenced.
Increase in the number of apartments completed
New home completions are up on a year ago after the first five months of 2019 (and by a double-digit percentage); so are home starts. By contrast, the number of planned homes for which building permits were issued (or notifications submitted) declined slightly compared with January-May 2018.
Here are the exact numbers for January-May 2019:
- 79,300 new dwellings were completed, an increase of 12.6% year on year. It is worth noting that the number of homes built by developers jumped by more than 20%, to 49,100;
- the construction of 96,400 homes got underway, up 5.5% y-o-y;
- building permits were issued (or notifications submitted) for 107,000 planned homes, down 2.1% y-o-y.
Data from Biuro Informacji Kredytowej showed a major rise in home loans approved in May 2019, both In volume and especially in value terms. The total value of loans jumped by nearly 25% year on year, while the number of loans, at 21,800, was up by more than 14% y-o-y.
Land prices continue to rise
Also on a strong upward curve are the prices of land for multi-family residential development. The trend is evident in most of the country’s big cities, and in some neighbourhoods of Warsaw and Wroclaw prices are up by more than 20% year on year, according to calculations by Emmerson Valuation. Big cities are where margins on multi-family residential projects are highest, which is why demand from leading developers remains high there, even despite rising prices.