The increase of interest rates, although postulated by many experts, comes as a bit of a surprise. How will this decision affect the real estate market?

It should be noted that the main factors stimulating the current boom in the real estate market include cheap loans and the unprofitability of investing cash in bank deposits. These factors are compounded by rising inflation.

At the same time, the influence of the Monetary Policy Council’s decision on the real estate market seems to depend mainly on the financial condition of the SECTORAL GROUPS OF PURCHASERS and their willingness to purchase apartments.

Certainly, any further increase of interest rates may make it impossible for those with lower creditworthiness and budget required to purchase apartments to buy them.

However, from the market’s point of view, the current increase is too low to stop the upward trend.

Meanwhile, new record-high price increases are being recorded. According to Rzeczpospolita Nieruchomości data, the biggest progress in the second quarter of this