Authored by the expert who managed and guided the team behind the Poland Property Pack
Everything you need to know before buying real estate is included in our Poland Property Pack
Poland's property market continues its remarkable upward trajectory as we reach mid-2025, with prices hitting new record highs across major cities.
Despite a slowdown in sales volume and concerns about affordability, residential property prices in Warsaw, Kraków, and Wrocław have surged by 14.4% year-on-year, making Poland one of Europe's fastest-growing real estate markets.
If you want to go deeper, you can check our pack of documents related to the real estate market in Poland, based on reliable facts and data, not opinions or rumors.
Poland's residential property prices have increased by 14.4% annually as of June 2025, with Warsaw averaging PLN 16,459 per square meter and new apartments costing even more.
The market faces a significant housing deficit of 1.5-2.2 million units, keeping demand high despite record-breaking construction activity and elevated mortgage rates at 5.25%.
| Indicator | Current Status | Trend |
|---|---|---|
| Average Price (7 Major Cities) | PLN 13,404/m² | ↑ 8.12% YoY |
| Warsaw Central District | PLN 22,515/m² | Slight decline |
| Mortgage Interest Rate | 5.25% | Expected to decrease |
| Housing Deficit | 1.5-2.2 million units | Persistent shortage |
| Foreign Buyer Share | 30%+ in select projects | Increasing |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
How much have Poland property prices increased in the past year?
Poland's residential property prices have surged dramatically, with an annual increase of 14.4% as of June 2025.
The average price for existing homes in Poland's seven largest cities (Warsaw, Gdańsk, Gdynia, Kraków, Łódź, Poznań, and Wrocław) reached PLN 13,404 per square meter, while new apartments command PLN 14,265 per square meter.
Warsaw remains the most expensive market with central district prices hitting PLN 22,515 per square meter, followed by Kraków at PLN 20,139 per square meter. The rapid price growth has been particularly pronounced in Wrocław and the Tri-City area (Gdańsk, Gdynia, Sopot), which saw increases of 11.2% and 11.4% respectively in early 2025.
Despite the overall upward trend, the pace of growth has moderated compared to the explosive increases seen in 2023 and early 2024. Some central districts in Warsaw and Kraków have even experienced slight price declines, suggesting the market may be approaching a plateau in premium locations.
The price surge has created significant affordability challenges, with the average Warsaw resident now needing five years of saving half their salary just for a 20% mortgage deposit on a modest 57 square meter apartment.
Which Polish cities saw the biggest property price increases in 2025?
Wrocław and the Tri-City area (Gdańsk, Gdynia, Sopot) led Poland's property price growth in early 2025.
Wrocław recorded an impressive 11.2% annual price increase, driven by strong demand from both domestic buyers and foreign investors attracted to the city's growing tech sector and strategic location near the German border.
The Tri-City metropolitan area saw prices jump 11.4% year-on-year, with Gdańsk's central district now averaging PLN 16,233 per square meter. The coastal location, combined with a thriving business environment and limited housing supply, has made this region particularly attractive to buyers.
In contrast, Warsaw and Kraków experienced more modest growth or even slight declines in some districts. Warsaw saw prices fall in 14 out of 18 districts, though the central area remains Poland's most expensive at PLN 22,515 per square meter.
Smaller cities like Poznań and Łódź showed moderate but steady growth, with specific districts like Jeżyce in Poznań and Widzew in Łódź leading local increases of 3% and 5% respectively.
What are the current mortgage rates for property buyers in Poland?
Poland's mortgage interest rates stand at 5.25% as of June 2025, among the highest in Europe.
The elevated rates have significantly impacted affordability and dampened demand from first-time buyers. According to market data, mortgage applications have dropped considerably compared to the boom period of 2023 when the government's "Safe 2% Mortgage" program temporarily subsidized rates.
| Mortgage Type | Interest Rate | Typical Terms |
|---|---|---|
| Variable Rate | 5.25-6.5% | 25-30 years |
| Fixed Rate (5 years) | 6.0-7.2% | 20-25 years |
| Fixed Rate (10 years) | 6.5-7.5% | 15-20 years |
| Foreign Currency (EUR) | 3.5-4.5% | 20-25 years |
The National Bank of Poland is expected to begin cutting rates in the second half of 2025, with analysts forecasting a 100-basis-point reduction by year-end. This could provide some relief to prospective buyers and potentially reignite demand.
Despite high rates, Poland's mortgage market is showing signs of recovery, with a 52% year-on-year increase in mortgage inquiries in mid-2025, suggesting pent-up demand waiting for more favorable conditions.
It's something we develop in our Poland property pack.
Which property types are experiencing the fastest price growth?
New, energy-efficient apartments with smart home features are seeing the highest price appreciation in Poland's market.
Premium and luxury apartments over 90 square meters have experienced particularly strong price growth, with some Warsaw properties selling for over PLN 20 million in 2025. The luxury segment grew by 6.7% to reach PLN 3.5 billion in total market value.
Family-sized apartments in suburban areas are also appreciating rapidly as remote work trends continue and families seek more space. Properties with home automation systems, expected to be in 18% of homes by 2025, command premium prices.
In contrast, older apartments built before 1990 have seen values stagnate or decline by 0.3-1.8%. Pre-war buildings without modern amenities are particularly affected, as buyers increasingly prioritize energy efficiency and modern conveniences.
The student accommodation sector is emerging as a high-growth segment, with an estimated shortage of 400,000 beds nationwide driving investor interest in purpose-built student housing developments.
How severe is Poland's housing shortage affecting prices in 2025?
Poland faces a critical housing deficit of 1.5-2.2 million units, one of the most severe shortages in Europe.
The country has only 420 housing units per 1,000 inhabitants, significantly below the EU average of 514 units. This structural shortage continues to drive prices upward despite record construction activity, with developers completing nearly 200,000 new units in 2024.
Warsaw alone needs an estimated 400,000 additional apartments to meet current demand. The shortage is exacerbated by factors including Ukrainian refugee influx (over 1 million since 2022), rapid urbanization, and an aging housing stock with 12% of dwellings standing empty due to poor condition or location.
The average apartment size in Poland is just 75.5 square meters, 21 square meters smaller than the EU average, while the overcrowding rate stands at 35.8%, nearly 20 percentage points above the EU average.
Despite developers obtaining 291,280 building permits in 2024 (a 20.58% increase), the supply pipeline cannot keep pace with demand, ensuring continued upward pressure on prices through 2025 and beyond.
What is the property price forecast for Poland in 2026?
Property prices in Poland are expected to continue rising in 2026, though at a more moderate pace of 3-5% annually.
Market experts from Cushman & Wakefield predict that prices will stabilize in late 2025 before resuming growth in 2026, particularly if the anticipated interest rate cuts materialize. The forecast 100-basis-point rate reduction could improve affordability and stimulate demand.
Key factors supporting continued price growth include Poland's GDP growth projection of 3.3% in 2025 and 3.0% in 2026, ongoing urbanization trends, and the persistent housing deficit. The country's economic fundamentals remain strong, with low unemployment at 2.7% and rising wages.
However, several risks could moderate price growth, including the widening affordability gap (prices have outpaced wage growth), potential economic slowdown, and the impact of new zoning reforms taking effect in January 2026.
Long-term projections suggest Poland will continue converging with Western European price levels, but the explosive growth rates of recent years are unlikely to be sustained as the market matures.
Are foreign investors still interested in Polish real estate?
Foreign investors are increasingly active in Poland's property market, accounting for over 30% of buyers in select development projects.
Ukrainian citizens lead foreign purchases, acquiring 380,000 square meters of residential space in 2024, followed by a surge in Belarusian buyers who purchased 111,000 square meters. This represents a significant shift from traditional Western European investors.
| Buyer Nationality | Market Share | Preferred Locations |
|---|---|---|
| Ukrainian | 40% of foreign buyers | Warsaw, Wrocław, Kraków |
| Belarusian | 15% of foreign buyers | Warsaw, Gdańsk |
| German | 8% of foreign buyers | Wrocław, Poznań |
| Other EU | 20% of foreign buyers | Major cities |
| Asian/Middle Eastern | 17% of foreign buyers | Warsaw luxury segment |
German investment has declined significantly, dropping to just 54,000 square meters purchased, while interest from Asian and Middle Eastern buyers is growing, particularly in Warsaw's luxury segment.
Poland's relatively affordable prices compared to Western Europe, with Warsaw averaging €2,200 per square meter versus €5,000+ in Berlin, continue to attract international buyers seeking value and investment opportunities.
It's something we develop in our Poland property pack.
How does Poland's property market compare to neighboring countries?
Poland's property market offers significantly better value than Czech Republic while experiencing similar growth to Hungary.
Warsaw's average price of PLN 13,404 per square meter (approximately €3,100) remains considerably lower than Prague's prices, making Polish cities more attractive for both residents and investors. Poland's 14.4% annual price growth in 2024 was comparable to Hungary's 13.4% but higher than Slovakia's more modest increases.
Despite rapid growth, Poland maintains its position as one of Europe's most affordable major markets. The housing saturation index of 420 units per 1,000 inhabitants is below the EU average but improving faster than neighboring countries.
Poland leads Central Europe in construction activity, delivering nearly 200,000 new units in 2024, positioning it among the top four European countries by construction scale. This outpaces neighboring countries significantly.
However, Poland has the highest mortgage rates in the region at 5.25%, compared to more favorable rates in Czech Republic and Slovakia, which partially offsets the price advantage for leveraged buyers.
Get fresh and reliable information about the market in Poland
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What impact did government mortgage schemes have on prices?
The government's "Safe 2% Mortgage" program significantly inflated property prices before its discontinuation in 2024.
The subsidized mortgage scheme, which offered loans at 2% interest rates versus market rates of 9%, created a surge in demand that pushed prices up by double digits in many cities. When the program ended, sales volumes dropped by 31.18% year-on-year, though prices continued rising due to supply constraints.
The mere announcement of potential new schemes has caused market volatility, with many buyers delaying purchases in anticipation of future subsidies. The abandoned "Kredyt na Start" program and the newly proposed "Pierwsze Klucze" (First Keys) scheme targeting the secondary market have created uncertainty.
Government officials acknowledge that previous programs inadvertently fueled price inflation, with Development Minister Krzysztof Paszyk stating that "not a single złoty from this program will go to developers" under the new approach.
Market experts warn that while such schemes temporarily boost affordability for qualifying buyers, they ultimately contribute to faster price growth that benefits existing property owners more than first-time buyers.
Are first-time buyers still active in Poland's property market?
First-time buyers face significant challenges in Poland's market, with many priced out despite strong underlying demand.
The average first-time buyer in Warsaw needs to save for five years, putting aside half their salary, just to accumulate a 20% deposit for a modest 57 square meter apartment. This affordability crisis has pushed many young Poles toward renting, with 12.9% of households now tenants.
Despite these challenges, over 70% of apartment seekers in 2024 were planning to buy for owner-occupation rather than investment. Young professionals and families continue to drive demand, particularly for smaller, more affordable units in suburban areas.
Banks reported a 52% year-on-year increase in mortgage inquiries in mid-2025, suggesting significant pent-up demand among first-time buyers waiting for better conditions. Many are holding off purchases hoping for interest rate cuts or new government support programs.
The rental market has become the default option for many, with average asking rents reaching PLN 3,581 nationally and PLN 4,906 in Warsaw, forcing young Poles to spend increasing portions of their income on housing.
Which areas of Poland offer the best investment potential?
Wrocław and Poland's Tri-City area offer the strongest investment potential with double-digit price growth and robust rental yields.
Wrocław's 11.2% annual price appreciation, combined with its proximity to Germany and growing tech sector, makes it particularly attractive for investors. The city offers rental yields around 6%, with strong demand from both local and international tenants.
The Tri-City (Gdańsk, Gdynia, Sopot) combines 11.4% price growth with yields averaging 6.27% in Gdańsk. The coastal location, business growth, and limited land supply create favorable long-term dynamics.
Emerging opportunities include Poland's Silesian region, where massive green energy investments totaling EUR 1.5-2 billion are expected to drive property demand. The region's transformation into a renewable energy hub could create significant appreciation potential.
Łódź is developing as a logistics hub with over 630,000 square meters of warehouse space, attracting e-commerce giants and creating employment that drives residential demand. Despite being more affordable than major cities, Łódź offers yields around 5.8%.
For luxury investors, Warsaw's premium segment continues to attract international buyers, with record-breaking sales exceeding PLN 20 million for top properties.
It's something we develop in our Poland property pack.
We made this infographic to show you how property prices in Poland compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
What are the main risks facing Poland's property market?
The widening affordability gap poses the greatest risk to Poland's property market stability.
Property prices have significantly outpaced wage growth, with the house price-to-income ratio reaching critical levels. In Warsaw, residents need 24 years of saving half their income to buy an average apartment outright, creating unsustainable conditions.
High mortgage rates at 5.25% remain among Europe's highest, limiting buyer purchasing power. While rate cuts are expected, any delays could further dampen demand and potentially trigger price corrections in overheated segments.
Speculative investment activity, particularly in the luxury segment where prices exceeded PLN 24 million for individual apartments, raises concerns about market froth. Over 30% of purchases in some developments come from investors rather than owner-occupiers.
External risks include potential economic slowdown, with GDP growth projected to moderate to 3.0% by 2026. Rising construction costs and labor shortages could constrain supply, while geopolitical tensions affecting Poland's eastern neighbors create uncertainty.
The impending zoning reform in January 2026 could disrupt development patterns, while any sharp rise in unemployment would severely impact demand given current affordability constraints.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Yes a lot - Poland's property prices are definitely going up, with annual growth of 14.4% making it one of Europe's hottest markets.
Despite challenges including high mortgage rates and affordability concerns, the combination of severe housing shortages, strong economic fundamentals, and continued foreign investment ensures the upward price trajectory will continue through 2025 and beyond, though at a potentially more moderate pace.
Sources
- Global Property Guide - Poland's Residential Property Market Analysis 2025
- Cushman & Wakefield - The Housing Sector At The Crossroads 2.0
- Poland Weekly - Poland's Housing Boom 2025
- JLL - Residential Market in Poland Q1 2025
- Notes from Poland - Housing Shortage Analysis
- PwC - What's Behind the Boom in Polish Housing
- EY - Real Estate Guide Poland 2025
- Reuters - Poland Real Estate Market Report
- Investropa - Poland Real Estate Market Statistics
- Varso Invest - Foreign Property Investment in Poland
- Trading Economics - Poland Housing Index
-Can foreigners buy real estate in Poland?
-Can you get residency by buying property in Poland?
-What is the average house price in Poland?
-Average price per square meter for apartments in Poland
-What is the average apartment price in Kraków?
-Average apartment prices across Poland
-Kraków apartment prices per square meter