The cost of building ground got crazy because of Euro 2012
Released on = June 2, 2007, 2:21 pm
Press Release Author = Mariusz Lubowiecki
Industry = Real Estate
Press Release Summary = The cost of building ground got crazy because of Euro 2012
Press Release Body = According to analysts, the growth of value of building grounds is temporary and anybody who is about to purchase the land should wait through this fever.
Within few days, just after announcing Poland as one of the host nations of EURO 2012, the price of building ground near Wroclaw jumped to 20 per cent.
The growth of the value mainly concerns the grounds intended for investments. The vendors count on the fact that there are companies, connected with EURO, which will be willing to build e.g. new hotels. However, according to the president of WGN, investors being interested in the plots should wait through temporary fever, as sooner or later the cost of these grounds will be cut down to the current level.
\'\'The prices of the grounds may raise as these are underestimated grounds, not because of EURO-Mr Michniak claims.
Also Marta Kosinska, the analyst of the website service fast.pl thinks that if there is somebody who puts up the prices of the flat in connection with EURO, that is just speculation. \'\'There are no investments connected with EURO as yet so there are no reasons to change anything regarding the prices\'\', she underscores.
Is it more expensive locally or throughout the country?
Most of the specialists expect that the value of properties will be growing up faster as the result of EURO 2012, but it will be more local phenomenon. It will more concern the cities in which the tournament will take place. \'\'The value of houses, plots and other properties where the investment is connected with infrastructure of EURO 2012 will grow up. In Warsaw such a growth is expected in the area of second underground connection and ring roads which will improve communication between Warsaw and nearby areas. That is where the prices of ground will undoubtedly raise\'\', Mr Marcin Drogomirecki, from oferty.net expects.
The other thing is that people who will be buying estates on the purpose of investment may also contribute to the growth of the prices of the host cities. These areas will become more attractive. However, the size of these changes will not reach that level as in Barcelona before the Olympics in 1992. Within 6 years, before the event, the value of the properties there raised by 200 per cent.
The raise of the prices will not stop
Some analysts expect that championship will influence the whole market. It will result in increased demand for building materials and workers with whom there is already quite a big problem. It may cause the growth of the cost of development investors what will eventually be shifted onto the customer. \'\' EURO rejects the chance of fast growth of the number of flats as the building companies are more in charge of infrastructural investments. These contracts will be more lucrative\'\', Marta Kosińska admits.
There are also people who pay attention to the mechanism of self-fulfilling prediction. As people believe it will be more expensive it will happen so. Above all, properties will be more expensive as the market is led by the system of supply and demand. Looking at the current number of being built flats-in the first term of 2007, according to Central Statistical Office there were 26,700 new pieces of accommodation, which is 5 per cent less than a year ago-supply will not fulfill the need for new flats. \'\'The newest ideas of building flats by incorporated enterprise of Ministry of Treasure will not solve these problems\'\', Marta admits.
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