Changes in the working model and the desire to have at least a little greenery in front of the house due to the pandemic mobilized Polish consumers to invest in houses. Those built by developers are becoming more and more popular. Why? Rising prices of building and finishing materials, labor and the lack of proven renovation teams are making consumers hesitant to build themselves.
The average price of large apartments in the largest Polish cities increased by 20%. compared to the same period last year. The high cost of purchasing real estate in our country has made Poland look more and more at different options.
When asked what real estate customers are looking for, it can safely be answered that they are increasingly inclined towards housing. Building in satellite towns adjacent to major cities is gaining popularity in the first place. In such a situation, more and more people are faced with the dilemma: build or buy from a developer?
The latest data from the Central Statistical Office shows that Poland started fewer construction projects in the first quarter of 2022 – the decrease is 5.8%. y / y This is the aftermath of inflation and rising costs of building materials. Horyzont Inwestycji experts predict that consumers may be inclined to buy turnkey homes from developers. The purchase is convenient, the customer has a price guarantee and confidence in quality.
Building houses more expensive
Inflation in Poland is almost 14 percent. – follows from the latest data from Statistics Netherlands. The prices of food, goods and services are rising. Rising prices also translate into the cost of building a home. This situation has led to uncertainty in the market. Many buyers prefer to buy a finished property from a developer at the expense of building a home from scratch.
† Building a house today involves enormous risks and uncertainty. As a proven developer, we have appropriate commercial contracts that guarantee us safety, even with such fluctuating building material prices. This is not the case with individual consumers. The amount contracted a year ago to build a house is only enough to partially cover the investment as prices are rising at an alarming rate. – explains Urszula Krukowska, sales and marketing manager at RealCo, a development company and investor of the estate in Michałowice near Warsaw.
The prices of building materials are rising month after month. This makes it more difficult to estimate the total investment cost. Only in April did material prices rise by 34 percent. compared to the same period last year.
Building your own is a huge challenge
Building a house yourself involves obtaining a number of permits, monitoring the prices of building materials or working with a renovation team. The biggest challenge is cost. Thermal insulation costs by half, OSB boards by 44%, dry construction by 45% and installations and heating by 27%. Consumers will also pay more for gutters and roofs — 45 percent, walls and chimneys — at 51 percent. The costs for furnishing the apartment have also increased.
† We see that more and more people are looking for a home away from the bustle of the city. Consumers work in home office or hybrid mode, they need a quiet and comfortable space to work. Buying a house from a developer is a guarantee of price, quality and it is not necessary to obtain numerous approvals. It is also certain that the investment will be built to the highest standards. – says Urszula Krukowska of RealCo.
Obtaining permits is time consuming. Many people who have decided to build a house also struggle with the lack of construction teams. Nearly 1.8 million people have returned to their home countries since the war started in Ukraine. For Poland, this means a lack of hands to work, because a large part of the workers came from the east.
Poles increasingly opt for the primary market
What makes Poland decide to buy a property on the primary market at the expense of the secondary market or build a house at its own expense? First of all, the fact that the property is new (27%) and modern infrastructure is an important aspect for any second buyer. †Residential areas offered by developers are usually built near schools and kindergartens, shops or local eateries.h. ” – summarizes RealCo’s representative.
According to market analysts, the trend towards buying turnkey homes – both homes and apartments – will continue for even longer. Certainly, until the prices of building materials stabilize. And that won’t happen anytime soon.
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