Apartment prices Warsaw. Prices in the capital exceeded 14 thousand. per meter! What's next? Predictions 2022

Apartment prices in Warsaw are hotly debated, and more precisely, their constant increase. Despite this, there is no shortage of people willing to buy an apartment in the capital. In the fourth quarter of 2021, the average apartment prices in Warsaw increased by as much as 13%. What's more, in recent quarters the demand has significantly exceeded the supply of apartments, which means that there are fewer and fewer developer apartments in Warsaw. How many apartments in the capital have recently been put up for sale? How much does a flat in Warsaw currently cost?

Contents

1. Apartment prices Warsaw Q4 2021 - how much does a flat in the capital cost?
2. Housing offer in Warsaw Q3 2021
3. Where can you buy a flat in Warsaw at the cheapest price?
4. Home prices in Warsaw on the secondary market
5. Home prices in Warsaw and the pandemic
6. Will apartment prices in Warsaw fall in 2022 or will they become even more expensive?

Apartment prices Warsaw Q4 2021 - how much does an apartment in the capital cost?

According to Expander's data, in Q4 2021 for an apartment in Warsaw up to 35 m² you had to pay PLN 14,167 (+13% ), 35-60 m² - PLN 12,182 (+12%), over 65 m² - PLN 11,842 (+14%).

Residential offer in Warsaw Q3 2021

In Q3 2021, Warsaw recorded the second lowest housing offer since 2015. Sales also fell significantly and home prices rose again.

Below is a detailed analysis carried out at the end of Q3 2021 by REDNET Consulting:

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Recall that at the end of the first quarter of 2021, there were about 10.7 thousand available on the primary market in Warsaw. flats. The most flats were offered by the following districts: Białołęka, Wola, Mokotów, followed by Praga-Południe and Ursus. According to the calculations of CBRE specialists, 6.7 thousand were sold in Warsaw in the first 3 months of 2021. flats. In the second quarter of 2021, for apartments in Warsaw that remained on offer, you had to pay 11,500/m². In the six months of 2021, the average growth rate of apartment prices on the secondary market was 6%. There was also a slight monthly increase in housing prices and a large number of positively considered mortgage applications.

Apartment price analysis - secondary market, Warsaw

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Where is the cheapest place to buy an apartment in Warsaw?

Even a dozen or so percent difference in apartment prices results from the location of the property. Still at the forefront of the most popular and desirable districts are: Śródmieście, Wola, Mokotów, Wilanów and Ochota. For the first four locations, the median price increase in the first half of the year was between 5% and 10%. Compared to the same period in 2020. The biggest difference in offer prices of flats was recorded in Wawer, where the average price increased by 17%. Invariably, the cheapest apartments in Warsaw are those in Białołęka. It is also worth considering the offer of apartments on the secondary market, although their prices are also rising very quickly.

Apartment prices in Warsaw on the secondary market

If we want to buy an apartment and not ruin the budget, we should consider buying an apartment on the secondary market in right-bank Warsaw. Here are the lowest prices per m². It's about, among others about Rembertów, Białołęka and Wesoła. It is a bit more expensive in Ursus, Targówek and Włochy. In addition, Metrohouse consultants recommend Bemowo, Bielany and Praga Południe.

On the other hand, according to analyzes carried out by the Metrohouse real estate agency, we pay the most for apartments in the center of the capital on the secondary market. The company's experience shows that Warsaw residents still want to live in the very center of the city. This is an unpopular trend in other European capitals. Wola is in second place. The high position is probably due to the intensive development of the district and very good communication with the city center. Over 10,000 per m² you also have to pay in Wilanów, Mokotów and Ochota. These are the districts that are considered prestigious and have always been popular with potential buyers. However, this is a slightly misleading opinion, because in reality the price range and standard of apartments in these districts can be very different. You can also live in a block of flats here.

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Home prices in Warsaw and the pandemic

Although with the outbreak of the Covid-19 epidemic, the predicted scenarios heralded a decline in home prices by as much as 10-20%, the weaker period on the real estate market turned out to be temporary. Already in May 2020, the situation began to stabilize slowly, and buyers were more and more boldly taking advantage of the opportunity to see the property. In the first half of 2021, the average price per m² on the Warsaw secondary market was over PLN 11,500. zloty. In the same period of 2020, you had to pay an average of PLN 10.8 thousand per m². PLN, which means that a 7% increase was recorded. Currently, you have to pay over PLN 14,000 for an apartment in Warsaw. PLN, which means an increase of 13%.

NBP data confirm that despite the fears emerging at the beginning of the pandemic, the demand for apartments is high and the entire housing market is quite stable, although demand significantly exceeds supply. There are at least three reasons:

History shows that long-term investors can expect housing prices to rise higher than inflation. On renting in large cities - although less than a year ago - you can earn an amount corresponding to 4-5% of the value of the apartment for a year. Besides, real estate is considered a safe investment. All this contributes to the high demand for housing during the pandemic

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Will the prices of apartments in Warsaw fall in 2022 or will they become even more expensive?

Since the interest in apartments in Warsaw is very high, there is no indication that prices will fall. A large part of investors treat the purchase of an apartment as a capital investment, because it is still a stable investment, despite the lower interest in renting during the pandemic. In addition, we have recently observed a great interest of investment funds in the housing market. They buy up entire estates to sell them later for a profit. This causes the shortage of new apartments on the market and they are becoming more and more expensive. Read more about investing funds HERE.

Despite the increase in apartment prices, there is a lot of interest in second-hand real estate on the secondary market. This means that both buyers and sellers can meet their needs and finalize the purchase and sale transaction favorably.

Price growth is expected to slow down a bit in the coming months, but prices will continue to rise. Mainly due to the rising prices of building materials and services, as well as the lack of plots for the construction of new housing estates. On the one hand, interest rate hikes can dampen demand and push prices down. On the other hand, the aggravation of the armed conflict in Ukraine may increase prices. The possible influx of a large wave of immigrants could significantly increase rental costs and, as a result, translate into an increase in investment demand for apartments.

Not without impact on the prices of apartments in Poland and in the capital will be tax changes related to the Polish Deal, but also a rapid increase in salaries. The "Apartment without own contribution" program will also be launched soon. All these elements will affect the situation on the real estate market in 2022.

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