Warsaw, Poland July 3 , 2012 – The Polish residential real estate market is in a slow decline as people have expended their savings, credit has dried up, and the incentive program for young people in Poland to buy has expired.

Those selling the smaller apartments report that there are very few buyers. The buyer is that there are, are cash buyers and quite often foreign. Owners of larger apartments , which owners paid 15,000 zloty per square meter and more, are having trouble renting their apartments and there are no buyers. Those who bought with 110% financing as prices were rising now find themselves underwater.

 

 

Despite the declining prices, there are still a large number of projects under construction in Warsaw. But people who have been considering buying into these new projects are having some second thoughts.

There is a growing sensation that the end of the euro 2012 football championships may mark the end of the booming Polish economy. The money spent in building stadiums, roads and upgrading infrastructure created jobs that will now disappear.

There is no doubt that there are many more roads in the queue to be built. But the future of funding for these roads is really a question.

How much of an impact this real estate slow down is having on the rest of the rate economy is not known.

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But perhaps when one considers that one of the major wholesalers of home appliances has reported sales declines of up to 50% and more, the slow down is definitely having an effect.

This wholesaler says that he has never seen anything like this before and is very concerned as to what would have will happen after Euro 2012.

His fears seem to reflect the general feeling of the Polish population as they cut back on their vacation plans. See Vacation Cutbacks