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 has experienced dramatic price increases over the past five years, with apartment prices rising 70-140% in major cities while wages increased only 50-60%.
High mortgage rates averaging 7.8%, robust construction activity with 233,832 new dwellings started in 2024, and rental yields of 4-6.5% in major cities create a complex landscape where affordability challenges coexist with investment opportunities for both local and foreign buyers.
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 property market shows bubble-like characteristics with prices outpacing wages significantly, yet strong fundamentals including housing deficit, stable job market, and government support programs suggest continued opportunity.
The market faces affordability challenges with high mortgage rates but offers attractive rental yields and growth potential, particularly in smaller cities and suburban areas.
| Market Indicator | Current Status | Impact Assessment |
|---|---|---|
| Price Growth (5 years) | 70-140% in major cities | Bubble risk - exceeds wage growth |
| Mortgage Rates | 7.55-7.83% (EU highest) | Affordability challenge |
| Housing Supply | 1.5M unit deficit | Supports continued demand |
| Rental Yields | 4.0-6.5% in major cities | Attractive for investors |
| Foreign Investment | 17,330 apartments in 2024 | Growing interest |
| GDP Growth | 3.4% (Q2 2025) | Strong economic foundation |
| Construction Activity | 233,832 new starts (2024) | Supply response to demand |
How much have property prices in Poland risen compared to average salaries?
Property prices in Poland have surged dramatically over the past five years, creating a significant affordability gap that signals potential bubble conditions.
Average gross wages in Poland increased by 50-60% during this period, reaching approximately PLN 9,000 per month as of September 2025. However, prices for 50-square-meter apartments jumped by 70-140% in major cities like Warsaw and Kraków.
This disparity means Polish buyers now need 73 average gross monthly salaries to afford a typical apartment in Warsaw, compared to 57-64 salaries five years ago. The price-to-income ratio has deteriorated substantially, making Poland's housing market less affordable than many EU countries.
The rapid price appreciation has outstripped fundamental economic growth indicators, raising concerns about market sustainability. Despite strong GDP growth of 3.4% in Q2 2025, wage growth has not kept pace with housing costs.
It's something we develop in our Poland property pack.
What are current mortgage interest rates and how affordable are they for local buyers?
Poland currently has the highest mortgage interest rates in the European Union, creating significant barriers for local homebuyers.
Mortgage rates average 7.55-7.83% for both fixed and variable rate loans, more than double the EU average of approximately 3%. These elevated rates stem from Poland's central bank policy response to inflation pressures and economic volatility.
The high borrowing costs have severely impacted affordability for Polish residents. Mortgage applications dropped by over 30% year-on-year, reflecting widespread pricing out of potential buyers from the market.
For comparison, while Polish buyers face rates near 8%, their counterparts in Germany and France often secure financing at 3-4%. This rate differential makes Polish properties effectively more expensive for local buyers, even when nominal prices are similar.
Government programs like the "Safe 2% Mortgage" initiative aim to provide relief for first-time buyers, but these programs have limited scope and don't address the broader affordability crisis.
How many new housing units are being built and is supply keeping up with demand?
Poland's construction sector shows robust activity, but new supply still falls short of addressing the substantial housing deficit.
Developers started 233,832 new dwellings in 2024, representing a 23.7% increase over the previous year. However, completions fell nearly 10% due to earlier investment slowdowns and construction delays.
Despite this construction boom, Poland faces an estimated housing deficit of 1.5 million units. Demand continues outpacing supply, particularly in major metropolitan areas where job growth and urbanization drive housing needs.
The supply-demand imbalance is most acute in Warsaw, Kraków, and Gdańsk, where limited land availability and regulatory constraints restrict development. Ownership rates remain exceptionally high at 87%, leaving the rental market underdeveloped compared to Western European standards.
Construction activity focuses heavily on urban centers, with suburban and smaller city development lagging behind demand patterns. This geographic mismatch contributes to continued price pressure in desirable locations.
What is the average rental yield in major Polish cities?
| City | Gross Rental Yield | Market Characteristics |
|---|---|---|
| Warsaw | 4.0-5.2% | High demand, premium market |
| Kraków | 5.7-6.5% | Tourism + student demand |
| Gdańsk | 6.4% | Port city, growing tech sector |
| Wrocław | 5.8-6.2% | Business hub, university city |
| Łódź | 7.1-8.5% | Emerging market, lower entry costs |
| Katowice | 6.8-7.4% | Industrial transformation |
| Poznań | 5.9-6.7% | Western Poland gateway |
Kraków currently offers the highest yields among major cities, supported by robust tourism recovery and strong student rental demand. The city's historical significance and cultural attractions create consistent short-term and long-term rental opportunities.
It's something we develop in our Poland property pack.
How quickly are properties selling compared to previous years?
The Polish property market has experienced accelerated transaction speeds in 2025, reversing the slower sales periods of 2020-2023.
Properties in major cities are selling faster than during the pandemic years, driven by renewed buyer confidence and limited supply of quality listings. Well-located units in Warsaw and Kraków often receive multiple offers within weeks of listing.
Market liquidity has improved significantly as buyers adapt to higher interest rates and adjust price expectations. However, some submarkets show signs of longer sale times, particularly in oversupplied developments or secondary locations.
The average time on market varies considerably by price segment and location. Premium properties in prime areas continue moving quickly, while mid-market apartments may take 2-3 months to sell depending on pricing strategy.
Rising vacancy rates in certain developments suggest potential market timing challenges ahead, as some buyers adopt wait-and-see approaches amid economic uncertainty.
Don't lose money on your property in Poland
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What percentage of property purchases are made by foreign versus local buyers?
Foreign buyers represent a growing but still minor segment of Poland's property market, with Ukrainian nationals leading international purchases.
In 2024, foreigners purchased 17,330 apartments in Poland, with Ukrainians accounting for over half of these transactions. Belarusian citizens represent the second-largest foreign buyer group, followed by Germans and other EU nationals.
Despite this growth, foreign buyers represent less than 5% of total market transactions. Local Polish buyers continue dominating the market, supported by stable employment and government housing programs.
The Ukrainian buyer surge reflects both wartime displacement and longer-term migration trends. Many purchases involve families seeking permanent relocation rather than pure investment activity.
Foreign investment concentrates in Warsaw, Kraków, and coastal cities like Gdańsk, with limited activity in smaller markets. This geographic concentration creates local market dynamics that may not reflect broader national trends.
How stable is Poland's job market and wage growth affecting housing demand?
Poland maintains one of Europe's most stable job markets, providing fundamental support for continued housing demand despite affordability challenges.
The country's GDP grew 3.4% in Q2 2025, with unemployment remaining low and wage growth moderating after sharp post-pandemic increases. Average salaries now reach PLN 9,000 per month, with higher levels in major urban centers.
Skilled labor demand remains particularly strong in Warsaw, Kraków, and other tech hubs, supporting premium housing markets. Professional service sectors continue expanding, creating sustained income growth for educated workers.
Regional disparities persist between major cities and smaller towns, with urban areas benefiting from stronger wage growth and employment opportunities. This dynamic reinforces urbanization trends and housing demand concentration.
Despite overall stability, wage growth has not kept pace with housing costs, creating affordability stress for middle-income families. This disconnect may limit future demand growth unless addressed through policy intervention.
What government regulations, taxes, and subsidies are influencing the market?
The Polish government has implemented significant policy changes in 2025 aimed at improving housing accessibility while managing market growth.
Recent tax reforms clarified property definitions and extended filing deadlines for real estate tax returns, reducing administrative burdens for buyers. New affordable housing subsidies totaling PLN 4.28 billion were budgeted for 2025, targeting first-time buyers.
The "Safe 2% Mortgage" program offers reduced-rate financing for qualifying buyers, though eligibility criteria limit its broad market impact. Tax incentives promote energy-efficient development and sustainable building practices.
Government efforts focus on increasing housing supply through streamlined permitting processes and developer incentives for affordable projects. Municipal authorities in major cities are releasing more land for residential development.
Foreign buyer restrictions remain limited compared to other EU countries, maintaining Poland's openness to international investment while monitoring market effects on local affordability.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Poland versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How are demographic trends and urban migration shaping housing demand?
Urban migration continues driving housing demand toward major Polish cities, creating sustained pressure on metropolitan property markets.
Migration to Warsaw, Kraków, and regional hubs remains strong, with young professionals and university graduates fueling demand for apartments and condominiums. Population growth stays stable in urban centers while rural areas experience slower development.
Demographic trends show continued preference for city living among educated workers, supported by employment opportunities and lifestyle amenities. This pattern reinforces demand concentration in already expensive markets.
Suburban growth around major cities is accelerating as buyers seek affordability while maintaining urban access. Commuter towns within 30-50 kilometers of Warsaw and Kraków are experiencing significant development activity.
The aging population in smaller cities creates potential opportunities for housing renovation and urban renewal projects, though these markets carry higher investment risks than established metropolitan areas.
What risks could trigger a downturn in the Polish property market?
Several interconnected risks could trigger a significant correction in Poland's property market, with oversupply and interest rate shocks posing the greatest immediate threats.
Main downside risks include:
- Developer oversupply - Rapid construction growth could flood markets with new inventory, particularly in secondary locations
- mortgage rate increases - Further central bank tightening could price out remaining qualified buyers
- economic recession - GDP contraction would reduce employment and wage growth supporting demand
- regional instability - Geopolitical tensions could affect foreign investment and economic confidence
- affordability crisis - Continued price growth without wage increases could eliminate buyer pools
- government policy changes - New taxes or foreign buyer restrictions could alter market dynamics
- demographic shifts - Population decline in smaller cities could create localized market collapses
High vacancy rates in some developments already signal potential oversupply issues, while slower salary growth compared to housing costs suggests demand sustainability concerns.
Global economic shocks or EU-wide financial instability could amplify domestic vulnerabilities, particularly given Poland's integration with Western European markets.
What opportunities exist in undervalued regions outside Warsaw?
Smaller Polish cities and suburban areas offer compelling opportunities for yield-focused investors willing to accept higher vacancy risks and longer investment horizons.
Cities like Łódź, Radom, and Lublin provide rental yields of 7-8.5%, significantly above Warsaw's 4-5% range. Lower entry costs and improving infrastructure make these markets attractive for capital growth potential.
Suburban zones around major metropolitan areas represent the sweet spot between affordability and growth prospects. Towns within commuting distance of Warsaw or Kraków benefit from urban spillover demand while maintaining reasonable purchase prices.
Industrial transformation in Silesia and other traditional manufacturing regions creates opportunities for property renovation and urban renewal projects. Government investment in infrastructure and business development supports these emerging markets.
University cities outside major centers offer stable rental demand from student populations, though seasonal vacancy periods require careful cash flow planning. Cultural and historical cities may benefit from growing domestic tourism trends.
It's something we develop in our Poland property pack.
How do Poland's price-to-income and rent-to-income ratios compare to other EU countries?
Poland's housing affordability metrics now rank among the worst in the European Union, despite historically being considered an affordable market.
The price-to-income ratio in Poland requires locals to spend 7+ years of average income for a standard apartment, exceeding levels in Germany, France, and other established EU markets. This represents a dramatic deterioration from more affordable conditions just five years ago.
Mortgage interest rates in Poland at 7.8% are more than double the EU average, making financing costs particularly burdensome for local buyers. Combined with high property prices, total housing costs now exceed those in many Western European cities.
Rent-to-income ratios remain more competitive for investors, with gross yields of 4-7% comparing favorably to markets like Germany (2-4%) or Netherlands (3-5%). However, for tenants and buyers, affordability lags significantly behind leading EU markets.
The affordability crisis positions Poland similarly to overheated markets like Portugal or certain German cities, suggesting potential for policy intervention or market correction to restore balance.
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.
Poland's property market presents a complex picture of bubble-like price appreciation alongside genuine economic fundamentals that support continued growth.
While affordability challenges and high interest rates create near-term headwinds, the housing deficit, stable job market, and government support programs suggest opportunities remain for informed investors and buyers willing to navigate current market conditions.
Sources
- Architektura i Biznes - Housing Market Analysis
- Warsaw Business Journal - Mortgage Interest Rates
- Global Property Guide - Poland Price History
- Mortgage Blog - Market Update
- Poland Weekly - Housing Boom Analysis
- Global Property Guide - Rental Yields
- Finding Poland - Foreign Buyers
- 9CV9 - Salary Analysis
- Cushman Wakefield - Market Outlook
- Trading Economics - Property Prices