Development of property prices in Poland

Krzysztof Drachal

doi:10.18778/1429-3730.33.02

Authors

Krzysztof Drachal Faculty of Mathematics and Tnformation Science, Warsaw University of Technology

DOI:

https://doi.org/10.18778/1429-3730.33.02

Keywords:

demand, supply, Poland, property market, property prices, podaż

Abstract

This research is based on a simple supply-demand model constructed for Polish property market. The first aim is to analyse the average property price in Poland between 2006 and 2013. Costs of construction and average gross salary are taken as potential determinants of supply and demand. The modified version with an unemployment rate is also considered. Simple supply and demand functions are constructed in order to explain property prices dynamics by the forces of supply and demand solely. The model fails to be statistically significant. Nevertheless, the equation for property prices obtained in the first stage is statistically significant and well fitted. The probable sources of failure of the model as a whole are discussed.

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