Land market prices fall

Colliers International summarized the activity on the Polish land market in the previous year. According to the analysts, properties in Katowice saw a reduction of prices of all sectors of the land market.

It is a continuation of trends observed in 2011. In comparison to transaction prices in 2011, overall prices decreased by 7% in Katowice last year as it was in the suburbs of Warsaw. The prices reduction was the trend observed in 2012 on all major markets in Poland.

Investors in Poland most willingly bought land for office and residential development – about 85% of all transactions. Katowice was the location where the office land grew cheaper the most. The prices were down by 12% (in Wrocław by 11% and in the Tri-city by 10%). Colliers does not expect any dynamics of transactions on the Katowice land market in 2013.

However, it is worth to mention three land transactions concluded in the City in the last two months. Murapol has purchased a 2,8 ha plot for net PLN 8 million on Bażantów St. The contract was signed with Forest Hill, a subsidiary of TUP, as the seller. Moreover, the City Hall of Katowice has sold two plots located in the City downtown. The subjected lands are situated in the junctions of Mariacka/Francuska and Warszawska/Mielęckiego streets and were bought by private investors for more than PLN 1 million and PLN 1,5 million respectively.