Land parcel prices on a downward curve

2009-11-16

Land values have declined in the majority of Polish cities in the last few months, the one exception being Gdansk where they have remained unchanged, according to Rzeczpospolita.
The drop in prices ranged from 3.4% in Wroclaw to up to 15% in Warsaw, and the price range also changed quite clearly during this period. Minimum prices of construction land are currently cheaper in all major urban centres when compared with the corresponding period of 2008. In the opinion of analysts this reflects not so much a correction as a realignment of prices on the land parcel market.
Supply shrank in Q3 2009 – down by 28% compared with the same period in 2008. The outlook is least promising in this respect in Poland's biggest urban centres, where a limited supply of undeveloped land is reflected in few buy-sell transactions. In the opinion of analysts cited by the newspaper, the last few months of 2009 may further accentuate the negative trend in average prices of construction plots, which, however, will not be translated into any major surge in demand.

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