Collapse in housing. They have built so little even in a pandemic

As reported in the daily, the reduction in supply is an effect of a decline in demand due to unavailability credits, but also the desire to maintain margins. The current situation is influenced by shrinking demand for mortgage loans and a decline sale of apartments. In response, developers drastically reduced their investments.

According to the Central Statistical Office (GUS) data, in August the companies started the construction of only 5.2 thousand sq m. premises, by 63 percent. less than in 2021, which was a period of unprecedented boom. It is also about 38 percent. less than in July.

As the log reports, even during lockdown, i.e. in April 2020, the construction of 6.2 thous. apartments. This is the second time that companies have started to build fewer apartments per month than private home investors.

Production fell in the six largest agglomerations and smaller cities.

Construction stopped, sales stopped

As reported by Rzeczpospolita, the crisis in the housing sector will affect other segments of the economy, such as the production of furniture or building materials. There may be a recession. The flats will not become available because they will simply be lacking.

According to data from BIG DATA, developers in eight months of 2022 sold 22 thousand sq m of office space in the seven largest cities. 800 apartments, by 37 percent less than a year earlier.

In August alone, they sold less than 2.5 thousand. premises, which was a result worse than last year’s by as much as 45 percent.

Source: “Rzeczpospolita”

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