About 180,000 new apartments can be expected to hit the market in 2023, but fewer construction starts will be made, which will become apparent in the housing market only two years from now, according to Development and Technology Minister Waldemar Buda.
“In 2023, it is not so much that there will be less construction, but there will be fewer construction starts. And this effect will appear only two years from now, because those apartments that will appear in 2023 will be apartments started in 2020, in 2021, and we will have an absolute top. It can be expected that in 2023 there will be about 180,000 apartments, so that won’t be really bad,” Buda told Radio Plus.
According to the minister, housing prices are not expected to fall,.
“In my opinion, these 180 thousand apartments can be sold. I don’t think they will be cheaper, because the price of housing today is influenced by many factors, first of all, the cost of labor, the number of hands to work, let’s remember that in the construction industry there were Ukrainians who went to Ukraine in large numbers due to the war, they had such an obligation, so there is a shortage of workers, a lot of construction materials have fallen,” he stressed.
He pointed out that housing prices have risen almost 7% on average in 2022.
“I would like to see prices stabilize, because they are still – remember – rising. 2022 is closing with an increase of almost 7% on average, in connection with this I would like to see housing stop getting more expensive, and this would be great news, unattainable for many years,” Buda said.
“The margin is about a dozen percent, this opportunity to go down is about a few percent. This is the opportunity for this reduction, while no one will sell below the cost of production. […] Even if this apartment were to fail to sell to him, they will certainly not sell at a loss,” the minister concluded.
Source: Radio Plus and ISBnews
