A year of price craziness

Definition of social construction is favourite for the title of "non-event of the year". The end of rising prices? At the moment, let's not rush to drawing such conclusions.

2006 is already behind us, a year of record price increases in the residential market. Demand in the market is significantly in excess of supply, and the atmosphere has led to further turbulence in the property market. Firstly, a step forward was taken as to the definition of social construction, which will effect the VAT rate from 2008, after which there were two steps back. Next, the screw was tightened on mortgage loans in Swiss francs. In the meantime, a broad stream of money from western investors started to flow into Poland, while construction workers headed in the opposite direction. Meanwhile, the price of land went up. We did not have to wait long for the effects of all of this. Property prices accelerated and broke new records. The leader was Wrocław, where the annual increase in the average value of a square metre was 74%. In Poznań the increase was "only" 29%.

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