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The ongoing turmoil in the global economy, slower growth in Poland and limited access to loans are impeding the sales of apartments in Poland. In fact, Q4 of 2011 may be the first quarter in two years in which the sale of apartments in major cities in the country could drop year-on-year, reports Parkiet.

Many Polish developers fear that 2012 will bring with it a further decrease in sales. The smaller demand could likely lead to a price war on the market, which would significantly lower the sector's profitability.

“We are observing that a number of our competitors are offering big discounts. This suggests that many companies are beginning to have problems with access to cash and are deciding to liquidate their deposits below production costs,” Tomasz Łapiński, board member of developer Ronson, told the daily.

But even if the pessimistic scenario for the housing sector comes true, the majority of developers should improve their financial results in 2012.

Indeed, new accounting rules allow developers to register revenue from sales only after transferring the apartment to the buyer. Therefore the profits of a lot of developers in 2012 will be based on sales made in 2011.

Poland A.M