Developers in Poland are halting the construction of new apartments due to a lack of buyers

Warsaw - Developers in Poland are halting the construction of new apartments due to a lack of clients. Many customers are also canceling already signed contracts because of difficulties in obtaining mortgages or out of fear of layoffs during the current economic and financial crisis. Developers also have trouble securing loans for new investments themselves. According to experts, only those who have lowered their prices are selling.
    In January, according to the Polish statistical office, companies started the construction of approximately 2600 apartments, which is half as many as a year ago. However, in reality, no one is building. In statistics, construction sites that are inactive are counted as started investments.
    A decline in construction or sales is also reported by the companies themselves. The leader in the Polish development market, A.J.W.Construction, stated that it sold 530 apartments in the entire last year, compared to 2800 in 2007.
    Dom Development, a company listed on the Warsaw Stock Exchange, stated that it suspended four investments last year. The director of this one of the largest development companies on the Polish market, Jaroslaw Szanajca, told reporters that his company has not completed a single apartment in the last eight months. In the last quarter, the company sold 92 apartments, which is a quarter less year on year.
    According to experts, banks have the main influence on the results, as they have tightened the conditions for granting mortgages. In Warsaw alone, in the fourth quarter of 2008, 400 customers canceled contracts with a developer.
    Selling apartments is only successful for those who have lowered their prices. For example, the company Gant, which focuses on building affordable apartments, offered a fifteen percent discount at the end of the year.
    The consulting firm REAS believes that the market is saturated. A number of new projects that started construction during the boom two to three years ago await customers. According to REAS, there are currently 37,000 new apartments available in the six largest Polish cities, of which up to 3300 could be moved into immediately.