“Clients Are Afraid of 30-Year Commitments When They Can’t Be Sure About Next Week”
What does Donald Trump have to do with the Polish real estate market? Is the war in Ukraine still influencing people’s decisions to buy property? Does fear of war make people hesitant to purchase a home or build a house? Experts have no doubt that extreme geopolitical instability and constant uncertainty about the future are deterring clients from making real estate decisions.
“The first quarter of 2025 appears better than the first quarter of 2024, as more people are inquiring about properties, visiting them, and looking for offers and opportunities. However, we also see situations where clients withdraw from transactions,” admits Mirosław Król, a real estate market expert.
“I Heard That When War Might Break Out at Any Moment, You Should Save Money, Not Buy Houses”
Why are potential homebuyers backing out of their plans? Mirosław Król acknowledges that the current global instability often disrupts the plans of those looking to buy a home.
“Fear is a major factor limiting consumer decision-making. If we cannot be sure what will happen in the world tomorrow, how can we plan commitments for 30 years? As real estate advisors, we often have to reassure clients and convince them that abandoning investment or homeownership plans due to global events can indefinitely postpone their dreams—because we simply cannot predict the future,” says Król.
Poles are afraid of war. The decisions made by the U.S. president and his ambiguous stance on Ukraine greatly worry clients.
“This is a real situation. Two clients decided to put their purchasing plans on hold after Donald Trump had a dispute in the Oval Office with the Ukrainian president. I was told, ‘When war might break out any moment, you should save money, not buy houses,’” says Król. “It’s understandable that people are cautious and make thoughtful decisions regarding real estate purchases. However, sometimes this fear is excessive and causes people to miss out on truly great deals,” he adds.
Those with the Most and the Least Money Are Hesitating the Most
Who is most likely to postpone their investment decisions? Experts argue that purchasing real estate in uncertain times is particularly challenging for both investors and those who need significant loans to buy a property.
“If you are buying property as an investment, the potential threat of war naturally makes you want to keep liquid assets rather than tie up capital in real estate, which, while profitable, is not easily accessible. Those who need to take out large mortgages to buy a home are also hesitant,” Król explains.
“I also see cases where people who have a strong personal need to buy a home no longer pay attention to external factors. They understand that there is never a ‘perfect time’ to make such decisions. This might be the most rational way to view the real estate market,” he adds.
The first quarter of 2025 has brought a slight revival in the real estate market, but challenges remain. Many potential buyers still struggle to obtain favorable mortgage terms, while others delay their decisions in hopes of lower housing prices or a new government subsidy program. Currently, the proposed “First Keys” initiative is being discussed, but experts argue that it is not a solution to the difficult real estate situation.
Source: Manager Plus
