Real Estate Market 2024 – Buyer Support Programs
The 2024 real estate market developed thanks to the government program Safe Credit 2%. The project was to help buyers buy their first apartment, house, build or finish building a house. Applications for credit subsidy could be submitted until the end of 2023, and the peak number of reservation agreements occurred in the first quarter of 2024.
At the beginning of 2024, Bank Gospodarstwa Krajowego suspended the process of accepting applications under the Safe Credit 2% program. It proposed a new financial support plan for Poles, namely Mieszkanie na Start. Borrowers hoped that the program would start in the fall of 2024, but the government planned its launch for 2025.
Real estate market 2024 – development investments
The turmoil regarding credit support has caused uncertainty and indecision whether to be interested in the secondary or primary market . At the beginning of the year, the sale of apartments on the primary market dropped significantly, but in June there was an increase in the number of sold apartments compared to May 2024. In turn, July 2024 brought another decline in the sale of new apartments, because the cheapest ones were sold and their prices increased.
The 2024 real estate market also saw the launch of as many as 50,000 apartments in developer standard in 7 major cities in Poland:
- Warsaw,
- Wroclaw,
- Lodz,
- Poznań,
- Katowice,
- Krakow.
New investments were also made in Szczecin, Bydgoszcz, Rzeszów, Kielce, Białystok and Lublin, among others.
And what are the prices of developer apartments? The most expensive ones were:
- Warsaw – approx. PLN 18,000 per m2,
- Krakow – approx. PLN 16,000 per m2,
- Wrocław – approx. PLN 14,000 per m2.
Prices this year have increased in Łódź (+12.7%) and Kielce (+11.5%), and decreased in Gdańsk (-0.6%) and Szczecin (-8.8%).
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What did the real estate market in 2024 look like for the secondary sector?
The 2024 real estate market also saw turmoil in secondary sector apartments. With the end of the Safe Credit 2% program, sales of these premises decreased significantly, so there were more offers than willing buyers.
Prices per m2 began to fall, but in the second quarter the situation slowly began to stabilize. The value of a square meter remained at the same level as in April 2024 in:
- Krakow,
- Poznań,
- Tricity,
- Upper Silesian-Zagłębie Metropolis.
The prices of apartments that have been waiting for buyers for a long time may gradually fall.
What are the factors influencing the real estate market in 2024?
Factors influencing the real estate market in 2024 include:
- Demand, which is influenced in particular by the growth of the population in a given place and the level of wealth of its inhabitants.
- Supply, which results from the availability of real estate on the market. When supply is limited and demand increases, prices generally increase. The way to stabilize this situation is to increase the availability of apartments, which is helped by new investments.
- The location of the property – e.g. in the center of a large metropolis, in a smaller town. This is important both when you invest privately, e.g. in a house, and for business, e.g. in warehouse space . The development prospects of a given place are equally important.
- The degree of infrastructure development – when a property is located close to highways, airports, expressways, metros, and service networks, its attractiveness increases. This means that its price may be higher.
- The economic and political situation – this is especially true for economic crises, e.g. caused by the pandemic, unemployment rate, minimum wage. They affect the general situation in the country, inflation and the household budget of Poles. Government financial support programs are also important, which can make it easier to make a decision to buy your own M.
- Credit opportunities – credit availability, repayment terms (interest rates, installment amounts, etc.). Favorable credit terms increase the chances of increased interest in apartments.
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