Is this the end of real estate price increases in Krakow?
Last year on the Krakow real estate market brought unexpected profits, mainly for developers whose clients willingly took advantage of 2% loans. Huge sales of apartments on the primary and secondary markets led to an increase in apartment prices in Krakow by as much as 31%, which gives the city of Kings first place of the most expensive apartments in Poland.
It would seem that after the wave of customers interested in purchasing, the market will experience some stabilization that will allow for more reliable investments in 2024 - nothing could be further from the truth. In the coming months, the "Mieszkanie na Start" program will be launched, which has many similarities to the previous program, but also assumes additional restrictions, such as income criteria, age or the number of people in the household. This program is intended to benefit mainly young people and families with children. Banks declare great flexibility in the selection of loans when a potential client slightly exceeds the income or age criteria. How will this work in practice? We'll see.
The new loan program will certainly affect the prices of all available properties in Krakow, regardless of whether they meet the assumptions of the government program. So what can we expect? Further price increases that will block the purchase of real estate by customers who are not eligible for financing. This will have a direct impact on the rental market, many people, wanting to improve their living conditions, will decide to rent a larger apartment instead of buying it. There will be one effect: in the second half of the year, both sales prices and rental rates will soar up.