LAW ENVIRONMENT IN POLAND HAS BEEN CHANGING VERY RAPIDLY
12 March 2019
Tomasz Diering, Manager at Audit Department, BDO, Poznan Office comments in "Time for Polska" Magazine available at the MIPIM Fair in Cannes from 12 to 15 March 2019: The Polish economy has recently been on a wave of stable growth. The good economic situation in the housing market, especially in the primary market, is a result of many factors, such as: banks' high interest in granting cash and mortgage loans, government programs relating to housing market: finishing the "MDM" program (apartments for the youth), starting "Mieszkanie Plus" program (which helps middle-class individuals to buy or rent an apartment), supplements of PLN 500 given by the government to parents of more than 1 child, which encourages them to invest, among other things, in real estate. On the other hand, developers are facing the problems of rising prices of materials and difficulties in finding subcontractors' services due to the difficult situation on the labor market. As a result, the pace of investments is slower and prices increasing. All these factors also cause reporting problems, as stakeholders receive information about the results later than expected. However, the developers' base of income in one reporting period is based on properties sold for example 2 years ago, i.e. built on cheaper lands. Also, the performance costs were lower, as they started to increase approximately 2 years ago.
Source: "Time for Polska" page 23