III. Housing Market Prices
III. Housing Market III.1. Primary housing market in Krakow In 2010, we observed a natural correction due to earlier investment limitations – the market waited for the surplus of completed houses Housing statistics to be absorbed. Additionally, developers positively assessed market developments in the following quarters, commencing construction The year 2010 was very interesting from the perspective of Krakow’s of 9,158 flats (an increase of 47.7 %) and obtaining a building permit housing statistics. On the one hand, compared to the previous year, for a another 12,180 flats (an increase by 95.3 %). The figures are we have observed a clear drop in the number of flats commissioned. similar to the ones in 2007 that led to record results of the con- The preliminary data from the Statistical Office in Krakow shows struction industry in the years 2008–2010. Thus, unless we observe that 4,710 flats were commissioned in 2010, while in the peak severe deterioration of other indices determining the demand and year 2009 – as many as 10,332 houses. A year-on-year decrease housing growth, i.e. credit availability, costs of investment comple- amounted to nearly 55 %. We cannot speak about a crisis, though, tion, inflation rate, unemployment indices and general economic since the number of flats commissioned in 2010 was lower than situation, in the years 2011–2012 an increase in the number of flats the average in the years 2004–2008 only by a few hundred flats. commissioned can be expected. Number of flats commissioned, for which building permits were issued, and construction of which was commenced in Krakow in the years 2007–2010 2007 2008 2009 2010 The number of flats commissioned 4,922 6,621 10,332 4,710 The number of flats whose construction was commenced 10,499 7,583 6,199 9,158 The number of flats for which building permits have been issued 11,168 12,051 6,238 12,180 Source: Statistical Office in Krakow 24 III.
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