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The Key Real Estate Market Moments of 2024 and 2025: Why Investing Now Might Be a Smart Move
The years 2024 and 2025 are shaping up to be crucial for the real estate market in Poland. Many potential investors are wondering whether to make a property purchase decision now or wait for market stabilization. However, all signs indicate that delaying might result in higher prices and increased risk in the future. Here’s why investing in real estate now could be advantageous.
Table of Contents:
Anticipated Market Activity Increase in Early 2025
Rising Land Prices and Developer Investments
Global Political Changes – Impact on the Real Estate Market
Risk of Further Property Price Increases
Uncertainty About Market Stabilization in 2025
Activation of KPO Funds
1. Anticipated Market Activity Increase in Early 2025
At the beginning of next year, we expect heightened activity in the real estate market. The introduction of programs supporting home purchases, such as a 0% loan, is widely discussed in Poland. Although there is still uncertainty regarding their implementation date, the mere fact that these programs are on the government’s agenda could lead to increased interest in property purchases.
Anticipations of new financing options may drive demand, which will soon translate into higher prices. Acting now could help you avoid the surge in buyers when the market heats up.
2. Rising Land Prices and Developer Investments
In the coming months, developers plan to increase land acquisitions for future projects, which will inevitably lead to higher construction costs and property prices. The completion of paused investments due to the pandemic and the activation of funds from the National Recovery Plan (KPO) will bring more capital into the construction market. Developers, aiming to protect their investments from further price increases in materials and land, will ramp up their activities, potentially leading to further price hikes in housing.
By acting now, you can avoid additional costs that may arise from the rising prices of land and materials.
3. Global Political Changes – Impact on the Real Estate Market
The year 2024 will bring significant international events that could impact the real estate market in Poland. The U.S. presidential elections and the potential end of the war in Ukraine or a ceasefire might trigger a surge in economic activity and capital influx into Europe. Poland, being a neighboring country to Ukraine, could become a key player in Ukraine’s rebuilding process, increasing foreign investor interest.
If the conflict concludes, expect rapid economic growth and a higher volume of real estate transactions, which could drive prices even higher. Acting now might be wise before global changes affect local markets.
4. Risk of Further Property Price Increases
High inflation and rising construction costs continue to influence property prices. Additionally, if a 0% loan program is introduced in Poland, demand for real estate could significantly increase, leading developers to raise prices to capitalize on the situation. The risk of further price hikes is real, especially since properties in Poland are already becoming more expensive.
5. Uncertainty About Market Stabilization in 2025
Although some investors are considering waiting until 2025 to see how the market stabilizes, this strategy might be risky. Uncertainty regarding government programs, rising construction costs, and global political changes make it difficult to predict long-term market conditions. Current conditions, though uncertain, might prove more favorable than those we’ll encounter in two years.
6. Activation of KPO Funds
In the coming months, Poland is set to receive funds from the National Recovery Plan, which will certainly impact infrastructure development and investment in the country. These funds, directed towards infrastructure modernization, may increase interest in properties in regions benefiting from these investments, further driving up real estate prices.
Summary
The year 2025 will bring numerous changes that could significantly impact the real estate market in Poland. Expected increased interest in property purchases, rising land and construction material prices, and global political shifts are just a few factors that suggest investing in real estate now could be wise.
Delaying your investment decision and waiting for further market developments could prove to be a risky and costly move. By taking action now – while some are holding off and not buying – you can avoid price increases and take advantage of the current favorable investment conditions, as well as a much wider selection of properties available for investment and purchase.
If you have any questions or doubts regarding the conditions for making an investment decision in real estate, consult an experienced investment advisor or real estate market analysts.
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