The coronavirus pandemic and the economic crisis it caused were supposed to make flats will stand. None of these things. Prices are going up.
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In the case of consumer goods and services, the government tries to downplay the problem of high prices, pointing to the fact that the average earnings they grow even faster. Thus, the purchasing power is increasing anyway.
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The same cannot be said for housing prices. And this is the most serious purchase in the life of most Poles, which they often cannot afford from their own savings, but have to take out loans.
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See also: Delays at construction sites. Inflation hits contractors. Will there be a wave of bankruptcies?
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It might seem that wealth grows over the years and it will be easier to earn a living. It turns out, however, that the opposite is true. As the latest NBP report shows, the availability of flats for average wages has been declining for several years.
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“Despite the more difficult situation on the labor market caused by the outbreak of the pandemic, there was an increase (year on year) in wages in the enterprise sector. Their growth dynamics in voivodship cities, however, was lower than the increase in housing prices in these markets, which contributed to the deterioration of the housing availability index, informing about the number of square meters that can be purchased for an average monthly salary, “NBP experts point out.
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The above charts show that by allocating the entire one-month salary of the average Kowalski to the purchase of a flat, he will be able to afford him 0.7-0.9 square meters. Of course, it depends on the provincial city. It is harder in the biggest.
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From 2006 to 2013-2017 (depending on the city), this availability of housing increased, because wages increased faster than housing prices. Under the present government, that tendency has reversed and this relationship is worsening.
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Own M? Years of saving
So the question arises: how much monthly salaries do you need to have the equivalent of the price of a standard apartment in a particular city? From calculations money.pl shows that in Warsaw for a typical apartment (59 square meters) worth about 630 thousand at the developer’s (primary market). PLN you have to put aside 154 months (almost 13 years). Assuming the national net average.
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Long years of sacrifice are also waiting for the residents of Tricity and Wrocław, where average apartments (59 and 68 square meters, respectively) cost around PLN 577,000. zloty. And this amount consists of 141 times the average salary in the country (nearly PLN 4,100 per hand).
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The residents of Łódź and Kielce have to save almost half as much. There it is easiest to get your own M. With earnings at the level of the national average, we are talking about nearly 7 years. The average age in the country is about 8-9 years.
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It’s a theory. However, it is difficult to assume that in reality you can put your entire salary aside in order to buy a flat. For years. Therefore, for our calculations We also adopted the version that Kowalski saves PLN 1,000 from his monthly salary. With this assumption, it turns out that you have to wait … 52 years to buy an apartment in Warsaw.
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At the same time, in voivodships where flats are relatively the cheapest, this expectation would be shorter, but there is still a question of at least 30 years of saving.
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Developer perspective
Housing prices are constantly rising. Developers are rubbing their hands with increasing margins and profits. One of the biggest players in Poland is the Echo Investment group, which recently acquired another market player, Archicom.
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We asked CEO Nicklas Lindberg if the company saw signs of a decline in demand for flats due to the fact that not all buyers can afford to buy more and more expensive flats. He indicated that there are many customers on the market who are ready to pay more and more for their own M.
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– It is not our goal to sell as many apartments as possible at all costs. We must have an adequate profit. This is our main goal. This year, we are aiming for around 3,000 jobs. premises. And we want to defend our solid margins on all of them – emphasized Lindberg, summarizing the results for the first half of the year and outlining plans for the second half of the year.
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The CEO admitted that Echo Investment and Archicom had significantly increased their prices and this translated into a significant drop in sales. However, he believes that it is much more beneficial from the developer’s perspective.
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What’s next with housing prices on the market? Lindberg has no doubt that they will continue to grow.
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