Economic survey of Poland 2008: Bridging the housing gap
Despite a high level of homeownership, the housing market in Poland is suffering from an important shortage. The formal rental segment of the market is also underdeveloped, contributing to low labour mobility and persistent disparities in regional unemployment. Given the social, economic and political dimensions of the problem, various housing policies implemented since the beginning of the transition process have aimed to fill the housing gap. The housing market has been buoyant in recent years. Yet a brisk price appreciation has also occurred at the same time, while households’ exposure to interest and exchange rate risks has significantly increased and banks’ funding capabilities have shrunk. Although the market has not been directly affected by the recent global financial turmoil, recent information shows that a turn around is underway, with prices declining in several major cities as sentiment has plunged. This raises concerns about the capacity of the market to achieve a smooth adjustment in the face of a possible downturn.
Long abstract
