The housing offer on the market is very diverse. A 2-room flat may have a different size, and it will fulfill exactly the same function, and it is the buyer who pays for it. According to the table of tables, the prices of real estate from the same developer, in the same investment, with the same functionality, may differ by up to PLN 2,000 per square meter. What does this result from and what is the current situation on the real estate market? Expert comments by Katarzyna Tworska, Managing Director of redNet 24, and Maciej Dymkowski, President of the Management Board of Tabelaofert.pl
Tab. 1. Areas for the same types of apartments in Warsaw
TYPE OF APARTMENT METRAGE
2-room apartment from 25 m² to 74 m²
3-room apartment from 41 m² to 89 m²
4-room apartment from 57 m² to 116 m²
5-room apartment from 70 m² to 154 m²
Source: Tabelaofert.pl
The data from the table of table offers shows that the sizes for the same offers are different, as shown in the table above. In Warsaw, 2-room and 3-room apartments differ from each other by nearly 50 m², 4-room apartments – by 60 m², and 5-room apartments – by over 80 m².
“The purchase of real estate is to meet the housing need of a specific person and his family. When buying, customers focus on the number of rooms, functional layout and price. Both small and large apartments with the same number of rooms will fulfill the same role. The offer is very diverse due to the needs of buyers and, of course, their financial capabilities. Our data shows, however, that smaller sizes in each type of apartment are more popular,” notes Maciej Dymkowski, CEO of the table of tables.
Same investment, different price per m²:
One meter of construction for a given investment costs the same, and the final price per square meter may be different. This is due to the fact that the final value is the function and rooms, not the area. As the table below shows, flats in the same investments meet this the same role, but with smaller sizes, are cheaper considering the price for the whole apartment, but a square meter may be more than two thousand more.
Tab. 2. Comparative analysis of offers in the same investments in the popular segment
2-room apartments Price
Investment 1
I 51.66 m² PLN 11,000 / m² PLN 568,260
II 72.52 m² 9 100 PLN / m² 659 932 PLN
3-room apartments
Investment 2
I 41 m² PLN 14,000 / m² PLN 586,600
II 72.2 m² PLN 11,800 / m² PLN 852,000
Source: Tabelaofert.pl
According to the data from the table of tables, the cost of a two-room property in the popular segment in the same investment, with a smaller area, will be 1.9 thousand. PLN more per square meter, but the final price will be much more favorable for the buyer than for a larger apartment. The situation is similar when we compare 3-room apartments of different sizes from the same developer. With less, the buyer will pay 2.2 thousand. PLN per square meter more, but the final price is much more attractive to him than a larger one, and in fact he pays less for an apartment that fulfills the same role. From the developer’s point of view, also small real estates fare better, because the selling price per square meter is higher for him.
How to deal with a slowdown in the market?
The highest inflation in the 21st century, further increases in interest rates, and thus a decrease in creditworthiness and the ongoing war in Ukraine slightly slowed down sales on the primary market. Is there a solution for developers that will prevent a market crash despite difficult economic conditions?
“Developers should adjust their offers to the conditions prevailing today at the design stage. It is clearly visible that smaller areas are currently within the financial capacity of Poles. Those who can afford to buy an apartment for cash or for a loan today will not decide to buy a property with two rooms on a large area, but rather a greater chance to buy a smaller one,” emphasizes Katarzyna Tworska, Managing Director of redNet 24, a company specializing in sale of development apartments.
