“The bigger the banners at the construction site, the greater the developer’s desperation.”
It is said that the larger the banners and advertisements at ongoing and completed investments, the more desperate developers are to sell further properties. For some investments, sales have even dropped by 70-80% in the third quarter – says Mirosław Król, a real estate market expert. Specialists acknowledge that the real estate market is waiting for changes. Some are still waiting for government programs to support the real estate market, and others for property prices to finally fall. “We must learn to distinguish between offer prices and actual prices” – adds Mirosław Król.
For the consumer, a small drop, for the developer, a huge one. Minor price adjustments are visible in the real estate market
The second half of 2024 is marked by records, but these are not records that please developers and real estate sellers. On the one hand, a record number of offers are hitting the market, but on the other hand, sales have not been this low for a long time. Some development projects are estimated to have downturns of up to 80%. The biggest problems are in large cities where prices have been constantly increasing for years.
“For consumers, a price decrease of one percent is not spectacular, but for the real estate market, it is a sign of a certain tendency. So far, prices have been rising, usually by several percent, and now we have a pause and slight adjustments. We should not expect prices to fall significantly. It is not yet time for developers to be forced to sell off apartments. However, more attractive offers are appearing, and with some, it is possible to negotiate prices, which was impossible recently.” – says Mirosław Król, a real estate market expert.
“The larger the advertisement on the building, the more desperate the developer is. These are not the times when one would blindly buy any piece of land, just to get a new apartment. Now the attractiveness of the location, price, and standard counts. The client with cash is more demanding, and those waiting for credits or government support do not rush with their purchases.” -adds Mirosław Król.
Prices in the real estate market should remain stable until the end of the year, with the possibility of slight drops. The year 2025 remains a mystery for both consumers and developers.
“Offer prices differ from the prices in notarial deeds”
How are property prices shaping up in big cities? The leaders are three agglomerations: Krakow, the Tri-City, and, of course, Warsaw. The offer prices per square meter are around PLN 17,000, with the note that developers’ prices in Warsaw and Krakow often do not fall below PLN 20,000 per square meter. On such markets, cheaper secondary market apartments disappear faster, but there are significantly fewer of these.
Is this a good time to buy an apartment? That is always a difficult question, because, on the one hand, everyone is banking on price drops, but consumer hopes are unlikely to be met given how stable the developers’ market remains. You should definitely talk to developers, ask about prices, negotiate, because the offer price and the price on the notarial deed usually differ significantly.” – adds Mirosław Król.
Experts add that in addition to a decline in apartment sales in cities, there has also been a decrease in the number of transactions for semi-detached and detached houses. This refers to both secondary and primary markets.
Source: https://managerplus.pl/deweloperzy-w-potrzasku-im-wieksze-reklamy-na-budynkach-tym-wieksza-desperacja-35460
