The building sector

Two years ago, Warsaw was the third largest building site in Europe after Berlin and Moscow. Poland is not longer going through such a building boom, although it would appear that this is a temporary lull caused by the domestic and global economic downturn. Apartment building is stimulated by relatively expensive, but available credit, tax relief and demand for improving the quality of life. Polish and foreign developers have appeared on the Polish market. Cooperative housing has also widened its activity. Today the housing market seems to be saturated. Those, who could have bought new apartments, have already done so. Prices went up, but the cost of credit is falling with falls in inflation. The government has promised to start work on making house-building market more competitive. This is to be achieved via cheaper credits subsidized by the state budget, amongst other things. Together with the return to economic growth the situation on the house building front should also improve. In parallel, an office building market has developed. In Warsaw alone over the past 10 years several dozen such buildings, financed mainly by foreign capital, have risen.

source: www.poland.gov.pl