The residential real estate market in Poland has started to recover as lending restrictions are being lifted by banks and the volume of properties on the market is increasing, according to a report by REAS.

In Q1 2010, the number of residential units launched for sale in Poland’s main cities of Warsaw, Krakow and Poznan was similar to the number sold, suggesting a balance in the market place.

The report stated: ‘Bearing in mind the harsh winter and the fact that the first quarter of the year usually registers the lowest number of construction starts, these figures have to be seen as a sign of optimism from the Polish developers.’

There was a +53.4% increase in the number of flats and single family houses that were started by developers during Q1 2010 compared to the same period of 2009, as construction began on 11,500 properties according to the Central Statistical Office. However there are currently around 4,500 completed but unsold homes in Warsaw, and 9,000 in other cities.

The banks’ rules for granting mortgage loans appears to have relaxed, with an improvement in confidence due to positive signals about Poland’s economic condition and price reductions have combined to help sales increase, although they could possibly be artificially high due to incentives and price reductions.

The report states: ‘After a period of cautious lending policy in the first half of 2009, clearly the banks decided to return to crediting purchases of residential units again on new, increasingly liberal terms. Today, the majority of potential clients do not have problems with getting a mortgage loan, especially for smaller, cheaper units.’