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You can scratch off population growth as the reason. My country's population peaked in 1999, while its urbanization fell by almost one percentage point during
by Tade0 5y ago
You can scratch off population growth as the reason.
My country's population peaked in 1999, while its urbanization fell by almost one percentage point during the last decade, yet housing is getting more expensive at an alarming pace.
Both people and institutions have been parking money in the real estate market for a while now and that is made abundantly clear by postings such as "For sale: ten studio apartments!" (in the range of 18-25m sq. - so technically most of them aren't legally apartments).
There's a large new building in my area - I tried to find any kind of information on it back when it was in construction. Turns out it consists purely of so-called "microapartments". They might have been sold out before even any foundation was laid.
This trend is worrying. Buildings take up space and last decades - you can't just build another in the same area and it's not profitable to tear down such an investment.
- KptMarchewa 5y ago>My country's population peaked in 1999, while its urbanization fell by almost one percentage point during the last decade, yet housing is getting more expensive at an alarming pace. Metro areas in Poland are absolutely growing. The problem with part of your argument is twofold. First, is the faith in official statistics. People moving to large cities for university/work almost never officially change their "zameldowanie" unless they get kids and want to find place in kindergarten. Second, is the growth in "metro areas" compared to "urban areas". "Villages" such as Józefosław or Nowa Iwiczna have experienced extreme growth since 1999, and prices there directly affect prices in Warsaw. The same effect works in all metro areas except for Silesia. You're 100% right in the rest of the post though.