Sale of housing and prices for apartments in Warsaw on July 1, 2021

During the analyzed period of time (Q2 2020 - Q2 2021), the number of offered housing in the primary and secondary housing markets in Warsaw decreased from 14,445 to 10,802 apartments. However, after the covid recession, sales began to increase quarterly again (from 5298 to 6021 apartments).

In total, 10,802 apartments were offered for sale on the real estate market in Warsaw in Q2 2021, of which 8,429 (78.0%) were on the primary market and 2,373 apartments (22.0%) were on the secondary market. As you can see, the supply of new housing prevails in the structure of market real estate in Warsaw. Moreover, in the II quarter of 2020, the picture was even more surprising - the supply of apartments in new buildings was 85%.

In the II quarter of 2021, 6021 apartments were sold in the capital of Poland, of which 4699 (78.0%) in the primary market and 1322 apartments (22.0%) in the secondary market. Sales percentages matched offers with amazing accuracy.

More about the primary real estate market in Warsaw (Table 1)

In total, in the II quarter of 2021, 8,429 apartments in new buildings were offered for sale. There has been a persistent trend towards a decrease in the number of apartments offered. The 2021 index compared to 2020 was 68.3%.

At the same time, new home sales grew quarterly from 2,631 in Q2 2020 to 4,951 in Q1 2021 and 4,699 in Q2 2021. In April-June 2021, 4,699 apartments (55.8%) were sold. Apartments with an area of ​​up to 40 sq.m disperse the fastest, the slowest - with an area of ​​​​more than 80 sq.m

The greatest demand on the primary real estate market in Warsaw is for apartments ranging from 40.1 to 60 sq.m. They offer the most. This is how the structure of new apartments sold in Q2 2021 looks like: apartments with an area of ​​up to 40 sq.m - account for 18.1% of sales; apartments ranging from 40.1 to 60 sq.m - 44.7%; apartments ranging from 60.1 to 80 sq.m - 26.4%; apartments with an area of ​​more than 80 sq.m - 10.8%.

Now about prices in the primary real estate market in Warsaw

Of course, the cost of housing in new homes depends on many factors. Residential real estate on the primary market in Warsaw as of July 1, 2021 was offered at an average of PLN 11,539 per square meter. There was a steady trend of quarterly price increases. By the II quarter of 2020, they grew by 107.6%. There were simply no apartments on the market below PLN 4,000/sq.m., with prices ranging from PLN 4,001 to PLN 6,000/sq.m., there were only a few offers. Less than half of the proposals in 2020 (and just over a third in 2021) were between PLN 4,001 and 6,000/sq.m and between PLN 6,001 and 8,000/sq.m. Thus, the capital market of developers formed the average price of offers of new housing in the amount of more than PLN 10,000/sq.m.

Selling prices are slightly reduced. The deviation of the average offer price from the deal (from PLN 11,539 to PLN 10,671/sq.m) was 8.1%. At the same time, the largest decrease in prices was in apartments with an area of ​​up to 40 sq.m - 13.6%. And the smallest reduction in price (if I may say so) was in apartments ranging from 40.1 to 60 sq.m - 4.4%. Well, in general, the most expensive square meter of new metropolitan real estate as of July 1, 2021 was in the smallest (up to 40 sq.m) and largest apartments (more than 80 sq.m).

                     Table 1. Home sales and average home prices in Warsaw on the primary market (RP) as of July 1, 2021 (PLN/sq.m)

About the secondary real estate market in Warsaw (Table 2)

In total, in the second quarter of 2021, 2,373 apartments were offered for sale on the secondary market. In contrast to the market for new buildings, there is a tendency to increase the number of offered apartments. The 2021 index compared to 2020 was 113.1% (from 2,098 to 2,373, with some spike in Q4 2020, apparently caused by getting used to Covid).

Resale sales grew for the third quarter in a row in 2020. However, in the 1st and 2nd quarters of 2021, they fell again. In April-June 2021, 1,322 apartments were sold (63.0% compared to April-June 2021). Apartments with an area of ​​up to 40 sq.m disperse the fastest, the slowest - with an area of ​​​​more than 80 sq.m

The greatest demand on the secondary real estate market in Warsaw is for apartments ranging from 40.1 to 60 sq.m. They offer the most. This is how the structure of sold apartments looks like in the second quarter of 2021: apartments up to 40 sq.m - account for 30.8% of sales; apartments ranging from 40.1 to 60 sq.m - 44.8%; apartments with an area of ​​60.1 to 80 sq.m - 16.8%; apartments with an area of ​​more than 80 sq.m - 7.6%.

At the same time, in comparison with the new housing market, the priorities of buyers have changed significantly. In the secondary market went into the course of small apartments. Apartments ranging from 40.1 to 60 sq.m have retained their figure, and large apartments (more than 60 sq.m) in the secondary market are in less demand.

In absolute terms, there are much more apartments on the primary market with an area of ​​40 sq. m or more than on the secondary market.

About prices on the secondary real estate market in Warsaw

Residential real estate on the secondary market in Warsaw as of July 1, 2021 was offered at an average of PLN 12,473 per square meter. There was a steady trend of quarterly price increases. By the II quarter of 2020, prices increased by 108.3%. And this index is slightly higher than in the market of new buildings. In absolute value, the price of proposals for the secondary housing is higher than the primary one by PLN 934/sq.m. There were simply no apartments on the market below 4,000 PLN/sq.m., with prices ranging from PLN 4,001 to 6,000/sq.m and from PLN 6,001 to 8,000/sq.m, there were only a few offers. The capital's market of owners has formed an average price of offers of secondary housing in the amount of more than PLN 10,000/sq.m.

Prices for the sale of secondary housing in comparison with the requests of sellers are reduced more significantly than when discussing with developers. The deviation of the average offer price from the selling price (from PLN 12,473 to PLN 10,513/sq.m) was 18.6%. The largest price reduction was in apartments up to 40 sq.m - 24.5%.

Thus, the average prices for new and second homes in Warsaw are practically equal (PLN 10,671 and PLN 10,513/sq.m, respectively). In general, the most expensive square meter of secondary metropolitan real estate as of July 1, 2021 was in the smallest (up to 40 sq.m) and largest apartments (over 80 sq.m).

Table 2. Housing sales and average housing prices in Warsaw on the secondary market (RW) as of July 1, 2021 (PLN/sq.m)