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Poland's property market shows continued strength in September 2025, with apartment prices rising 8-11% annually across major cities.
Expert forecasts indicate moderate growth ahead, supported by economic expansion and institutional investment, though affordability challenges persist for domestic 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.
Warsaw leads with prices at PLN 16,459 per sqm, while rental yields range from 5.2% in the capital to 7.5% in smaller towns.
Interest rates at 4.75% are moderating demand, but institutional investors and foreign buyers continue driving market activity in major cities.
| City | Price per sqm (PLN) | Annual Growth | Rental Yield |
|---|---|---|---|
| Warsaw | 16,459 | 8.07% | 5.2% |
| Kraków | 15,099 | 10.58% | 6.5% |
| Gdańsk | 12,000-14,000 | Strong growth | 6.2-6.3% |
| Wrocław | 12,675 | 9.32% | 6.1% |
| Smaller towns | Varies | Moderate | Up to 7.5% |
What are current apartment prices per square meter in Warsaw, Kraków, Gdańsk, and Wrocław?
As of September 2025, Warsaw leads Poland's property market with secondary market apartments priced at PLN 16,459 per square meter.
Kraków follows closely at PLN 15,099 per sqm on the secondary market, showing the strongest annual growth at 10.58%. The primary market in Kraków commands PLN 15,686 per sqm with 6.62% year-over-year growth.
Gdańsk, part of the Tri-City area, maintains prices between PLN 12,000-14,000 per square meter and continues experiencing strong growth momentum. Wrocław offers more affordable entry points at PLN 12,675 per sqm for secondary market properties, with impressive 9.32% annual appreciation.
Primary market prices consistently exceed secondary market values by 10-15% across all major cities. Warsaw's primary market reaches PLN 16,383 per sqm, while Wrocław's new developments command PLN 14,257 per sqm.
The nationwide trend shows prices accelerated through 2023-2024 but moderated into 2025, with annual increases generally ranging between 8-11% in key markets.
How much rental yield can investors realistically expect in major Polish cities versus smaller towns?
Rental yields in Poland's major cities range from 5.2% to 6.5%, with Kraków offering the highest returns among metropolitan areas.
Warsaw provides gross yields around 5.2%, reflecting higher property prices but strong rental demand from corporate tenants and expats. Kraków leads major cities with 6.5% gross yields, driven by robust student and tourist accommodation demand.
Wrocław and Gdańsk offer competitive yields at 6.1% and 6.2-6.3% respectively, balancing moderate property prices with steady rental markets. These cities benefit from growing tech sectors and university populations.
Smaller towns like Radom deliver significantly higher gross yields up to 7.5%, with net yields often exceeding 6%. However, these markets carry greater vacancy risks and limited liquidity compared to major metropolitan areas.
The yield differential reflects the classic risk-return trade-off, where smaller towns compensate investors with higher returns for increased market risk and reduced property appreciation potential.
What are Poland's current interest rates and their impact on mortgage affordability?
Poland's central bank reference rate stands at 4.75% as of September 2025, following a recent 0.25 percentage point cut.
| Rate Type | Current Level | Recent Change |
|---|---|---|
| Reference Rate | 4.75% | -0.25% |
| Lombard Rate | 5.25% | Stable |
| Deposit Rate | 4.25% | Stable |
| Typical Mortgage Rate | 6.5-7.5% | Moderate improvement |
| Impact on Buyers | Constrained demand | Slight improvement |
How many new housing units are under construction and is supply meeting demand?
Poland's largest cities continue experiencing significant new housing construction, but demand remains strong enough that supply shortages persist gradually.
2025 witnessed a modest decrease in new building permits, though construction completions remain elevated as developers finish projects initiated during previous years. The historic supply backlog accumulated during 2020-2023 is slowly being reduced.
Build-to-Rent projects are accelerating rapidly due to institutional investor interest, while private development has moderated somewhat under the stricter credit environment. Major cities still face supply constraints in prime locations.
Construction activity concentrates in Warsaw's outer districts, Kraków's expanding boundaries, and Gdańsk's Tri-City development corridors. However, city center availability remains limited, supporting price stability.
Overall supply-demand dynamics favor continued price appreciation, though the pace has moderated from peak 2023 levels as new completions gradually increase market inventory.
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What is the average time properties stay on the market before selling?
Polish property markets demonstrate strong liquidity, with city center apartments typically selling within 30-40 days in Warsaw, Kraków, and Gdańsk's premium districts.
Suburban and peripheral areas require longer marketing periods, usually 50-90 days depending on local demand dynamics and pricing strategies. Well-priced properties in established neighborhoods move faster than overpriced listings.
Time-on-market has shortened compared to historical averages, reflecting continued strong demand despite higher interest rates. However, the pace has moderated from 2023's post-pandemic peak when properties often sold within weeks.
Premium properties in Warsaw's Mokotów or Kraków's Old Town frequently receive multiple offers, while standard apartments in secondary locations require more patient marketing approaches.
It's something we develop in our Poland property pack.
How are foreign buyers and institutional investors influencing the market?
Foreign investors and Polish institutions account for an increasing share of transactions in Warsaw, Gdańsk, and Kraków, fundamentally reshaping market dynamics.
International buyers primarily originate from Western Europe and Ukraine, with Western Europeans focusing on investment properties and Ukrainians often purchasing for personal use. These buyers typically target city center apartments and new developments.
Institutional investors, particularly Build-to-Rent funds, are rapidly expanding long-term rental portfolios. This institutional activity stabilizes income yields and establishes pricing floors in target markets.
Foreign investment concentration in premium segments creates upward price pressure, while institutional demand for rental properties reduces available stock for individual buyers. Cash purchases from international buyers often outcompete domestic mortgage-dependent purchasers.
The institutional shift toward rental portfolios signals market maturation, bringing professional property management standards but potentially limiting homeownership opportunities for local residents.
What are the latest government policies affecting property purchases?
The Polish government introduced several first-time buyer support measures, including subsidized mortgage programs and primary residence tax breaks.
Rental income taxation remains at 8.5% with simplified regimes available for small-scale landlords. The government maintains preferential treatment for individual investors compared to corporate ownership structures.
No major capital gains tax modifications occurred recently, but authorities implemented stricter reporting requirements and enhanced scrutiny for foreign owners and offshore transaction structures. These measures aim to increase tax compliance and market transparency.
First-time buyer programs include reduced down payment requirements and interest rate subsidies for qualifying purchases. However, eligibility criteria limit benefits to lower-priced properties, excluding most premium urban markets.
Future policy discussions include potential short-term rental regulations and additional foreign buyer disclosure requirements, though no concrete legislation has been finalized.
How are rental prices evolving compared to property price growth?
Rental prices in Warsaw, Kraków, and Wrocław increased 3-4% over the past year, significantly lagging behind sale price appreciation of 8-11%.
The rent-to-price ratio compressed across major cities, particularly in Warsaw where this divergence is most pronounced. This compression makes rental yields slightly less attractive than during 2022-23, though still above Western European averages.
Kraków maintains the strongest rental growth momentum due to university enrollment increases and tourism recovery. Gdańsk benefits from corporate relocations and port industry expansion supporting rental demand.
Smaller cities experience more balanced rent-to-price relationships, with rental growth keeping closer pace with property appreciation. This dynamic explains why smaller town yields remain more attractive.
The growing gap between purchase prices and rental rates suggests potential yield compression, making buy-to-let investments more dependent on capital appreciation rather than rental income returns.
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.
What are expert forecasts for Poland's property prices over the next 12-24 months?
Most property market analysts expect mild continued price growth between 2-6% annually over the next 12-24 months, representing a significant moderation from current double-digit appreciation rates.
No sharp correction appears likely unless major macroeconomic shocks occur, with city centers expected to remain more resilient than suburban developments. Some downside risk exists in overbuilt suburban areas where supply may temporarily exceed demand.
Warsaw's prime districts should maintain stable appreciation due to limited new supply and continued corporate demand. Kraków faces potential moderation as student housing construction increases, though tourism demand provides support.
Gdańsk benefits from port expansion and logistics sector growth, supporting continued moderate appreciation. Wrocław's tech sector development underpins steady demand, though rapid recent gains may slow.
Risk scenarios include economic slowdown, interest rate increases, or significant supply acceleration. However, fundamental demand drivers including urbanization and household formation support medium-term price stability.
How will Poland's economic outlook influence property values?
Poland's economy expanded 3.4% year-over-year in Q2 2025, with inflation declining to 2.8%, creating favorable conditions for sustained property demand.
Economic growth concentration in services and information technology sectors particularly benefits major urban property markets where these industries cluster. Wage growth in these sectors supports housing affordability for qualified professionals.
Controlled inflation allows central bank policy flexibility, potentially enabling further interest rate reductions if economic conditions warrant. Lower rates would improve mortgage affordability and stimulate buyer activity.
Poland's EU membership and strategic location continue attracting foreign direct investment, supporting long-term urbanization trends and property demand in major business centers.
If inflation remains controlled and interest rates stabilize, both domestic buyer and international investor activity should maintain healthy levels throughout 2025-2026.
What risks do experts identify in Poland's current property market?
Supply risk represents the primary near-term concern, with potential short-term oversupply in outer metropolitan zones where construction activity concentrated during recent years.
1. **Regulatory risks** include stricter short-term rental policies and enhanced documentation requirements for foreign buyers 2. **Affordability challenges** as wages rise slower than property prices, potentially excluding young domestic buyers 3. **Interest rate volatility** could impact mortgage demand and investor returns 4. **Economic slowdown** risks from global uncertainties affecting Poland's export-dependent economy 5. **Oversupply risks** in specific suburban developments and secondary city marketsPopulation inflows to major metropolitan areas mitigate oversupply concerns, while strong employment growth supports fundamental demand. However, increasing reliance on institutional rental rather than owner-occupation represents a structural market shift.
It's something we develop in our Poland property pack.
Where do experts see the best investment opportunities in Poland?
Student housing in Kraków and Wrocław offers excellent risk-adjusted returns due to stable enrollment growth and limited specialized accommodation supply.
Build-to-Rent opportunities in Tri-City and Warsaw provide institutional-quality investments with professional management potential and steady income streams. Compact apartments with reliable rental demand in established neighborhoods offer balanced risk-return profiles.
Secondary cities with strong infrastructure like Poznań and Łódź present better entry pricing with steady rental demand for the next investment cycle. These markets offer lower acquisition costs while maintaining reasonable growth prospects.
Large-scale short-term rental investments carry increased regulatory risk, though niche luxury and prime-located assets maintain value resilience. Commercial real estate in logistics and office sectors benefits from Poland's strategic European location.
It's something we develop in our Poland property pack.
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 demonstrates resilience with continued price appreciation across major cities, though moderation from peak growth rates signals market maturation.
Investment opportunities remain strong in student housing, Build-to-Rent, and secondary cities, while risks center on potential oversupply and affordability challenges for domestic buyers.
Sources
- Global Property Guide - Poland Price History
- NORD/LB Research Document
- Varso Invest - Apartment Prices in Poland
- InvestRopa - Average Rent Apartment Poland
- Varso Invest - Large Cities Investment Analysis
- Euroconstruct - Poland Residential Construction 2025
- Successful Investing Poland - Interest Rates September 2025
- National Bank of Poland - Interest Rates
- Knight Frank - Review 2024 Outlook 2025
- Simpl.rent - Poland Rental Market 2025-2026