In the last quarter of 2009, we have seen increasingly positive signs in the sales market in Krakow, with the level of transactions increasing and some high value sales concluded in central Krakow.

Several recent articles in the Polish press have pointed to the possibility of price rises of up to 10% in 2010, based on several factors. Most notably, the increased supply which had been evident on the market in 2009, particularly newly completed apartments, is now beginning to fall. There is also growing evidence of Pole’s willingness to return to the banks for new mortgage loans. A slight improvement in the terms of the local banks’ mortgage offer has also been witnessed, and is expected to continue in 2010.

After a very busy period in September and October, the rental market has slowed down as we head into the winter season. Whilst rental prices stabilized between April-October 2009, there was a high level of new supply of properties on the market, particularly in high-standard central new developments such as Angel City. The market has absorbed most of this new supply, though prices for apartments still available currently are under pressure.

On the economic front, the signs are positive for Poland. GDP growth in the third quarter of 2009 stood at 1.7%, and was based on net export growth and private consumption. Economists are predicting GDP growth in 2010 of between 1.5 and 2%.

The zloty has continued to gain in strength in the last quarter of 2009, and is currently hovering around 4.1 to the EUR, 2.8 against the USD and 4.6 to GBP, with further gains expected in 2010.

PKG Real Estate was in the news in October when one of our properties, a stunning two level apartment in a historic building between the old town and the Jewish quarter, was featured in an article in the prestigious New York Times newspaper. You can read the NY Times article here

We would like to take this opportunity to thank all clients of PKG Real Estate for their business in 2009, and wish you all a healthy, happy and prosperous 2010.