The latest data from the Central Statistical Office of Poland (GUS) confirms previous analyst predictions regarding a gradual slowing and signs of stabilization in the area of new investments. However, new investments are still being launched and permits are being obtained.
In September this year, developers started construction of 11,795 new apartments, compared to an average of 12,997 new apartments per month in the first nine months of the year.
Newly Initiated Investments
After a very strong first quarter, where investment activity was driven by factors such as the good economic conditions associated with the implementation of the Safe Credit 2%, we have been observing a slow quarter-by-quarter weakening of the supply of new investments.
A slightly greater caution in introducing new projects is primarily influenced by the current high offer of available apartments and uncertainty regarding future demand.
“It seems that in the absence of significant changes in market circumstances, such as a decrease in interest rates and the accompanying increase in credit availability, the number of new investments will continue to shrink slowly, but should not fall below the average of about 10,000 introductions per month,” says Patyk Kozierkiewicz, legal advisor at the Polish Association of Development Companies.
Permits for Construction…
Investors are still interested in obtaining new building permits. Their number in September remained at a stable, relatively high level, including the consent for the implementation of 16,122 apartments. This is a result 45.9% better than in the corresponding period last year.
…and Occupancy
The only data showing a regression compared to last year pertains to apartments handed over for use. This is the aftermath of a collapse in new investments, which was observed throughout 2022 and at the beginning of 2023. As the construction process lasts approximately two years, initiatives ending now began during the investment downturn period, hence the reduction in the volume of apartments being handed over for use.
“We can already definitively state that this year will be the weakest in this regard since 2019,” comments Patryk Kozierkiewicz.
Source: https://ceo.com.pl/inwestycje-mieszkaniowe-w-polsce-hamuja-ale-nie-zatrzymuja-sie-we-wrzesniu-rozpoczeto-budowe-prawie-12-tys-mieszkan-84000
