Lublin Cooling down in the residential market in Lublin, demand is piling up …

Demand in the real estate market in Lublin is piling up for small apartments, causing their prices to rise. Interest in houses and lots is lower than during the pandemic; There were offers to sell houses whose owners cannot afford to pay off their loans.

The owner of the real estate office of KNC City, Marek Bruszkiewicz, told PAP that the average price of an apartment in a good area of ​​Lublin is about 8,000 PLN/sqm. It stated that prices can vary considerably depending on location and build quality.

According to Bruszkiewicz, many offers for the sale of small, finished apartments (more than PLN 10,000 / m²) have entered the market. Flats in Śródmieście are more expensive, where as an example he mentioned a flat in a tenement house for PLN 14,000 / m²).

“The prices of small apartments rise when everyone else falls,” Bruszkiewicz noted. This is because, he explains, with the credit decline in recent months, the demand for small apartments is increasing. “People who used to be able to afford a 50 or 60 meter apartment can now afford 30 or 35 meter apartments,” he explains.

According to the entrepreneur, the difference between the price of a small apartment and a large apartment can reach PLN 1,000-2,000 / m².

When asked by PAP about the most popular neighborhoods among real estate buyers, he indicated: Czuby, Czechów, Wieniawa, Rury (LSM) and other locations near the university. According to the entrepreneur, the price differences between the neighborhoods do not exceed PLN 500/m², but the “cooling of the housing market” is likely to exacerbate these differences.

“Good housing is not cheap in good neighbourhoods. I would expect a slight decrease in poorer locations, but it will not be a phenomenon comparable to the years 2007-2008, when apartments in large blocks fell cheaper by PLN 1,500 / m². ” – He said.

“At the moment, developers are not starting new investments. They are finishing the old ones, they don’t want to add new apartments to keep the price,” he said.

Speaking about the trends in the real estate markets, he said he expects a slight increase in the prices of higher quality housing, with a standstill or a slight decrease in the prices of large-scale housing.

Karolina Lato, the owner of the Capital Finance and Real Estate office, noticed that with the outbreak of the war in Ukraine, the real estate market in Lublin stopped, but after several weeks of transactions, the number of transactions started to increase again.

According to Lato, there are many apartments for sale in the primary market, but fewer customers, because many people have no creditworthiness or are afraid of new obligations due to the economic situation.

On the other hand, in the secondary market, Summer said, apartments are still selling, large (70-80 m²) are slightly cheaper and small (up to approx. 50 m²) and ready-to-move-in apartments are more popular.

According to the owner of the office “Franczewska Nieruchomości”, Adrianna Franczewska-Krupa, the average price of an apartment on the primary market in Lublin is about 8,300 PLN / m², but there are also offers from 7,900 to 17,000. PLN / m²

She noticed a declining interest in new apartments, which translates into developers’ decision to refrain from starting the investment.

According to Franczewska-Krupa, the construction costs are unknown due to the rise in the prices of building materials, electricity, gas and the outflow of workers in connection with their departure to Ukraine. “Many developers who sold apartments for PLN 6,000 / m². it had to contribute to investments to bring about its implementation. This causes the margin to fall and discourages starting new projects “- she added.

Developers still have a stock of unsold apartments from previous years, Franczewska-Krupa noted. Demand is expected to increase around the turn of the year 2023/2024, provided the situation on the mortgage market improves.

The average price in the secondary market, according to Franczewska-Krupa, is about 8700 PLN / m².

In response to PAP’s question about house and land prices, Bruszkiewicz stated that he had not observed a drop in prices, although interest was lower than during the pandemic. According to the entrepreneur, building plots in cities near Lublin, such as Kalinówka and Jakubowice, cost PLN 200-250 / m².

Franczewska-Krupa also noticed a cooling in the housing and construction market. In the case of houses in a developer standard, she indicated that offers for PLN 650 thousand can be found. zloty. On the other hand, the prices of “turnkey” houses, depending on the location and standard, reach up to 3 million PLN.

He expects new opportunities on the secondary and primary market, both in the residential and apartment sectors. He believes that the situation on the credit market makes it easier for buyers to negotiate favorable prices.

In the summer there was a slight increase in the number of homes for sale. “Home sales slowed due to increases in loan repayments, construction and finishing costs. Recently, there have been offers of recently purchased homes, whose owners cannot afford to pay off their loans,” she said.

She drew attention to the growing number of cash transactions, which currently account for 20-30%. more than a year ago. “Instead of keeping money in their accounts, clients decide to invest their capital in real estate,” she explains.

According to a report by Expander and Rentier.io published in July, house prices fell in most cities in June compared to May; the largest, 10 percent decline, was registered in Częstochowa. However, house prices are higher than last year.

36,498 online sales offers from both the primary and secondary markets were analysed. This shows that in June, compared to May, house prices fell in 11 of the 17 cities analysed. The largest decreases occurred in Częstochowa (-10% per month) and Sosnowiec (-7% per month). Lower prices than in May were also recorded in the largest markets – in Warsaw (-2% m/m), Krakow (-1% m/m), Gdańsk (-4% m/m) and Wrocław (-1% m/m). /m). Prices in Lublin continued to rise significantly (+4% m/m).

As highlighted in the report, despite these declines, prices in all cities analyzed are still higher than they were a year ago. The leader is Szczecin (increase by 21% y/y). It is also much more expensive than in June 2021 in Poznań (18% y/y), Rzeszów (16% y/y) and Wrocław (16% y/y). In Warsaw prices rose by 12 percent. year on year and in Krakow 11 percent. yyyyy The lowest annual growth rate was observed in Sosnowiec and Katowice. The prices there are 6 percent. higher than last year (PAP)

Author: Piotr Nowak

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