Poland lacks over 2 mln flats: report

Poland currently lacks around 2.1 million apartments and by 2030, the deficit will have risen to 2.7 million due to the increasing number of households, a 73-page report published by Heritage Real Estate (HRE) Think Tank entitled “How many apartments does Poland lack?” states.

“We believe that the housing deficit stands at 2.1 million units,” an HRE Think Tank spokesperson commented, adding that “by 2030, due to the rising number of households, it will be necessary to add about 600,000 apartments to that number.

“Although all the demographic forecasts indicate that the number of residents in Poland will fall, we need to remember that the number of households will rise.”

According to estimates by HRE Think Tank, the number of households will rise by 1.2 million over the course of the next 12 years.

HRE Investments head said that the number of households would increase because Poland is slowly moving away from the model of multi-generational families. “There are ever more singles, and if two people live together, they have one flat each just in case,” the HRE Investments chief commented.

The report states that one persistent problem that remains is to ensure accommodation for households with medium or low income, whose earnings make mortgages inaccessible.

“Public aid in this area is insufficient,” explained an HRE Think Tank representative. “Too little is being built in the social tenement and cooperative housing system earmarked for those households. Social housing is also lacking. The apartment deficit in this segment stood at at least 150,000-200,000 at the end of last year.”

According to the HRE Investments head, one of the possible solutions to the problem of insufficient access to housing could be to reduce the proportion of self-financing from mortgage agreements on the condition that the family is buying an apartment to meet their own needs and not to let.

The report states that every year, 120,000-180,000 apartments are built in Poland. However, they are generally located in the four or five provinces with the biggest agglomerations.

HRE Think Tank announces on its website that is a non-profit organisation publishing research reports on the real estate market.