Wednesday February 13, 11:28 AM
Polish homebuilder JW Construction says house prices to rise 5 pct at end 2008
WARSAW (Thomson Financial) - Poland's house prices should hold steady in the first part of this year but gain around around 5 pct at the end of 2008, leading homebuilder J.W. Construction said.
'The company estimates that
the average price of real-estate will hold steady for the first few months of 2008 and then at the end of the year we will see growth of around 5 pct,' the company said in a presentation on its results.
'The extraordinary price growth of previous years will not return, but from 2009 housing and property will continue to get more expensive.'
JW Construction has benefited from double-digit growth of Poland's housing prices in recent years, due to rising wages and a booming economy which has encouraged thousands of Poles to take mortgages.
But many analysts have said price growth should slow this year, as new developments come on line and interest rates rise.
Last year net and operating profit at JW Construction rose 12 pct year-on-year and was just above the company's guidance, though the builder missed its target on sales.
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