Friday, November 10, 2006
it's booming,
and it won't stop any soon!
Big Polish banks (well, actually it would be more accurate to say saying 'banks that operate in Poland') have made some forecast regarding residential real estate in Poland. As mortgages become more and more popular and affordable in Poland this product is gaining importance in banks' portfolio. So, they've found out that:
- In 2007 mortgage sales is to increase by 50% to 60%.
- The ratio of the total amount of mortgages to Polish GDP is only 7%, and EU's average is some 40%.
- Based on current income level of the households the borrowing power of Poles equals PLN 650 billion (EUR 170 billion). This is 13 times more than current debt level.
- Poland lacks residential real estate. Some analysts say that there is a lack of 1 million apartments, some say, that regarding poor technical conditions of existing houses, it is 8 million. Well, it's a huge demand. Assuming current level of construction, it's going to take at least 15 years to supply (In 2005 there were built only 59,700 new houses and apartments).
- In 2008 there can be a setback in mortgages sales because... there will be no more real estate available on the market!
Therefore, it's truly a developer's market we're now having!
