Polish property bubble

• banks increased loan periods from 30 to 50 years to extend credit limits;
• an increasing uptake of debt in family budgets;
• increasing interest rates;
• the Polish economy showing signs of overheating in a reduction of the GDP growth rate to 1.5%; and
• a stagnation of prices and dramatic drop of sales in a long period of time with dynamically increasing supply of residential properties.

• House prices in Warsaw are down by 13.1%
• In Krakow, house prices are down by 17.9%
• In Poznan, house prices have fallen by 28%
• In Gdańsk, house prices plunged by 27%
• In Lodz, property prices plummeted by 35.7%

• a rapid increase of salaries - around 8% per year;
• low figures of both housing estate area and apartments per person, compared to other developed countries worldwide;
• money repatriated by Poles who have emigrated;
• rapid urbanization - the population of rural areas and small towns is declining rapidly, while the population of major urban areas is increasing quickly;