Property market: new flats are coming

True, the development industry is not talked about as much as at the end of the last decade, but it is still doing well. The number of flats completed is rising, and new building sites keep appearing.

Flats, offices, commercial space

It should be stressed right at the start that new premises are not only flats. They also include space intended for offices, shops, catering premises, garages and a range of other types of property – both residential and commercial.

We are building on a grand scale

If we look at the number of construction projects started this year and last, there is clearly an upward trend. Comparing April, May and June of 2015 and 2016, we see respectively:

• 9.1 thousand in April 2015 and 10.8 in April 2016
• 8.2 thousand in May 2015 and 6.0 in May 2016
• 6.3 thousand in June 2015 and 9.2 thousand in 2016

Despite the fall when comparing May this year and last, over the whole of the second quarter the difference is decidedly positive. The increase is also visible when comparing permits issued.

Thousands of new flats

As it turns out, new flats are being completed more and more often (http://remax-gold.pl/nowe-mieszkania-katowice). If we made a comparison similar to the one above, it would turn out that in the second quarter of 2016 more of them were completed than in the same period of 2015. The increase is really considerable – from 2.6 thousand to 17.3 thousand, that is, more than a third more!

Forecasts for the future

The very fact that the number of started projects and permits for further investments has increased shows that even more flats will be completed. On the other hand, it is worth remembering that the average size of flats is slowly, gradually but consistently decreasing. What does this mean for investors?

First of all, you have to take into account that if you let flats to families, they may potentially want to move into a place of their own later. Is there anything to fear? Not necessarily. Stricter requirements for home loans mean that fewer people will "flee" from renting. What is more, renting gives them a greater sense of mobility (which does not at all mean they will use that mobility), and that is also important to them.

On the other hand, remember that new flats are an opportunity for you as an investor – after all, you can earn from more than one property!

READ ALSO – THE SIZE OF NEW FLATS IS FALLING!

New commercial premises

As already said, new flats are one thing, but the primary market also sees new office premises, retail space and warehouse space. They too are an opportunity for investors. All the more so as many companies care about having their headquarters in modern, prestigious-looking buildings. If you manage to buy premises meeting such conditions, you can count on considerable interest from tenants.