Can the developer lower the price of the flat?

Czy deweloper może obniżyć cenę mieszkania?

Can the developer lower the price of the flat? Many people in our country are looking for the perfect apartment for themselves, sometimes the secondary housing market does not offer anything attractive, then it’s best to look around for developer offers.  Facing the purchase of real estate from a developer. The first step is to recognize the prices in the market. However, it is worth knowing that the prices appearing in the advertisements posted by such companies are the offer price, which in short means that it may differ from the transaction price at which a given premises will be purchased.

Why is this happening?

Firstly, for a developer , building an entire building is one and the same cost. It does not depend in any way on the layout of the rooms or the view from the window, which is why almost every apartment in a given building usually has the same or similar price. Such a procedure opens the door for both the developer and the buyer to negotiate. However, nowadays there will be no big discounts on the part of developers. The real estate market is currently conducive to all kinds of investment, and the demand for apartments still exceeds the supply. Therefore, the developers themselves do not have much reason to lower the prices of their premises, because if a given person does not buy it, and another one will certainly find their place.

How much does the Warszawa developer down the price?

A lot of people ask themselves this question before trying to negotiate. There are many factors influencing the final price of an apartment. First of all, the current rates per square meter of living space in a given city. If they are at a level similar to the one offered by the developer, you shouldn’t count on a spectacular discount on his part. Another aspect and argument for negotiation is the location of the apartment, often premises that face a noisy street are slightly cheaper and offer the possibility of additional price negotiations due to the lack of interest in them. However, it is worth considering whether the persistent surroundings and noise are worth the money saved.

In the largest Polish cities, such as Kraków, Warsaw or Wrocław, the differences between the offer price and the transaction price differ only by 1 or 2%, which, with a flat price of PLN 500,000,000, saves only PLN 5,000. This is such a small amount that buyers often give up any price negotiations with developers. As a result, they are convinced that their services are worth as much as they originally valued them.

For which apartments it is easier to negotiate a low price

Studio apartments or the aforementioned locations with a “view” of the street mean better prices for buyers can be negotiated. In their case, developers are more likely to choose a price higher than the previously mentioned 1-2% of the original price. This is due to the lower popularity of apartments. Especially those with a small size. In Poland, there is still a tendency to buy flats for many years, which means that small, 30-square-meter premises are excluded from the scope of interest of many people. However, it is worth not to forget about them when we buy a flat with a view to renting it out. These types of studios are a golden deal, especially in student cities, where it is practically landlords who repay any loan for the purchase of an apartment .

Will it be possible to expect larger discounts on transaction prices in the future?

It is quite likely that you will. The currently observed greater demand for apartments was closely related to the government’s Apartment for the Young program, which ended in 2018. Increasing the amount of own contribution by banks when it comes to mortgage loans may have an impact on the fact that fewer people will be able to obtain financing for the purchase of an apartment through banks, which means that the demand for it cannot sleep, which in turn makes developers they had to adapt to the market by lowering prices or being more flexible to negotiate the transaction price.

How to get a big discount?

Developers are much more willing to reduce the price to buyers who present attractive terms for the purchase of a flat. They can include payment in full in cash. Transferring a larger own contribution to start with. Buyers buying several apartments at once can also count on additional discounts from the developer. A common practice, preferred by developers, is adding a garage or parking space to the apartment, instead of reducing the price of the premises itself. This solution is also worth considering. Especially if there are no parking lots in the area where you can safely leave your car.

Summarizing and answering the question of how much a developer gets off the price: each location has its own rules. It all depends on the popularity of the street. One thing is certain, however, apartments in the very center offer less negotiation possibilities than those located on the outskirts. However, there is no need to count on a greater discount than the maximum 10% of the offer price. Already 5% is a satisfactory result, which allows you to save a large amount of money, which can be finally spent, for example, on subsequent legal expenses when buying a flat.


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