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Everything you need to know before buying real estate is included in our Poland Property Pack
Poland's property market is experiencing robust growth with prices rising 14-19% annually across major cities.
The market remains strong due to persistent housing shortages and steady demand, though mortgage rates have decreased from their 2024 peaks. Foreign buyers face minimal restrictions on apartment purchases, and rental yields remain attractive, especially outside Warsaw.
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.
Property prices in Poland have increased significantly over the past 12 months, with national averages surging 14-19% and major cities reaching record highs.
The market remains robust due to persistent undersupply, although rental yields are steady and mortgage rates are gradually decreasing from their 2024 peaks.
| Market Indicator | Current Status (Sept 2025) | 12-Month Change |
|---|---|---|
| National Price Growth | 14.4% year-on-year | Moderating from 2024 highs |
| Warsaw Average Price | PLN 16,459-18,000/m² | +8-9% |
| Mortgage Interest Rates | 7.1-7.9% (5-year fixed) | Down from 8%+ in 2024 |
| Rental Yields (National) | 4-7% | Stable to slightly down |
| Sales Velocity | 2-6 weeks (major cities) | Strong demand continues |
| Housing Shortage | 1.5-2.2 million units | Persistent undersupply |
| 2025-26 Price Forecast | 3-8% (2025), 5-10% (2026) | Continued growth expected |
How much have property prices in Poland increased or decreased over the past 12 months?
Property prices in Poland have surged by 14.4% year-on-year as of June 2025, with some regions experiencing increases up to 19%.
This significant growth represents a continuation of the strong upward trend that began in 2023, though the pace has moderated slightly from the peak growth rates seen in early 2024. The strongest price increases occurred during 2023 and early 2024, but current data shows the market is finding a new equilibrium at these elevated levels.
Some premium city center districts in Warsaw and Kraków have actually seen price stabilization or minor declines in the most expensive segments, indicating that certain luxury markets may be reaching saturation points. However, the broader residential market across Poland continues to experience robust price appreciation driven by fundamental supply-demand imbalances.
Regional variations show that secondary cities and suburban areas are still catching up to the major metropolitan markets, with continued strong growth expected in these areas throughout 2025.
This price trajectory positions Poland among the fastest-growing property markets in Central Europe.
What's the average price per square meter in Warsaw, Kraków, Gdańsk, and other major cities right now?
| City | Average Price (PLN/m²) | 12-Month Change |
|---|---|---|
| Warsaw | 16,459-18,000 | +8-9% |
| Kraków | 15,100-20,139 | +10-28% |
| Gdańsk | 17,500 | +10-11% |
| Wrocław | ~15,000 | +9-11% |
| Łódź | 7,800-9,800 | +4-5% |
| Poznań | 10,800-12,300 | +5-6% |
| Gdynia | ~11,400 | +4-5% |
How do current mortgage interest rates in Poland compare to last year?
Current mortgage interest rates in Poland average 7.1-7.9% for 5-year fixed mortgages, representing a significant decrease from the above 8% rates that prevailed throughout most of 2024.
The Polish National Bank (NBP) has reduced its base rate from 5.75% to 5.25%, contributing to the gradual decline in commercial mortgage rates. This monetary policy shift reflects the central bank's assessment that inflation pressures are moderating and economic conditions support lower borrowing costs.
Financial analysts predict further rate reductions through late 2025, with expectations that rates could fall to approximately 4.75% by the end of the year. This downward trend in borrowing costs is improving affordability for potential homebuyers and investors, though rates remain elevated compared to the ultra-low levels seen in previous years.
The rate environment is creating a more favorable financing landscape for property purchases, particularly when combined with the stabilizing inflation outlook. Banks are also beginning to relax some lending criteria as the interest rate environment becomes more predictable.
It's something we develop in our Poland property pack.
What's the average rental yield in the main cities, and is it trending up or down?
| City | Gross Rental Yield (%) | Trend Direction |
|---|---|---|
| Kraków | 6.5 | Stable |
| Wrocław | 6.1 | Stable |
| Warsaw | 4.0-5.2 | Slight decline |
| Łódź | 5.8 | Down from highs |
| Gdańsk | 6.4 | Stable |
| National Average | 4-7 | Stable, no strong growth |
How quickly are apartments and houses selling once they're listed on the market?
Most apartments in major Polish cities are selling within 2-6 weeks of being listed, reflecting continued strong demand and limited inventory availability.
Prime city-center properties and well-priced units in desirable neighborhoods often move even faster, sometimes finding buyers within days of listing. New-build developments and affordable housing segments experience particularly rapid sales velocities due to persistent undersupply in these categories.
However, high-end properties and suburban homes in oversupplied segments can take 2-3 months to find buyers, especially if priced above market levels. The luxury market shows more price sensitivity and longer decision-making processes among potential buyers.
Properties requiring significant renovation or located in less desirable areas may experience extended marketing periods, but well-presented homes in good locations continue to attract multiple offers and competitive bidding situations.
The overall sales velocity indicates a seller's market in most segments, with buyers needing to act quickly on desirable properties.
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Are foreign buyers facing any restrictions or extra costs when purchasing property in Poland?
EU and EEA citizens can freely purchase all types of residential property in Poland without any restrictions or additional permits required.
Non-EU citizens face limited restrictions and can freely purchase apartments without any permits, but require government approval for buying land or houses that include land ownership. This permit process is generally straightforward for residential purposes and rarely rejected for legitimate homebuying intentions.
Foreign buyers do not face any additional taxes, surcharges, or discriminatory fees beyond the standard transaction costs that apply to all property purchases in Poland. The tax treatment is identical regardless of the buyer's nationality or residency status.
The permit requirement for non-EU buyers primarily applies to agricultural land and strategic properties, but standard residential real estate transactions proceed without significant bureaucratic hurdles. Legal representation is recommended to navigate the permit application process efficiently.
Overall, Poland maintains one of the more open property markets in Europe for foreign investment, with minimal barriers to entry for most residential property types.
What kind of taxes and transaction fees should I expect when buying property there?
Property transaction costs in Poland typically total 2-8% of the purchase price, depending on the property type and specific circumstances.
The main costs include a 2% transfer tax (PCC) on resale properties, or 8% VAT on new builds up to 150m² for apartments and 300m² for houses, with larger units subject to 23% VAT. Notary fees range from 0.2-2% of the property value plus VAT, while real estate agent commissions typically cost 1.5-3% plus VAT and are often split between buyer and seller.
Land registry fees are relatively modest at 200-300 PLN, and annual property tax is approximately 1.19 PLN per square meter for residential buildings. Bulk buyers purchasing 6 or more units simultaneously face an additional 6% PCC tax designed to discourage speculative investment.
Legal fees for property transactions typically add another 0.5-1% of the purchase price, and property surveys or technical inspections may cost additional amounts depending on the property's complexity and age.
It's something we develop in our Poland property pack.
How is inflation in Poland impacting real estate affordability and financing conditions?
Inflation in Poland has moderated significantly to 4.9% as of March 2025, down from much higher levels that peaked in 2023-2024.
The previous high inflation period severely impacted affordability as property prices outpaced wage growth, creating a affordability crisis for many potential buyers. However, the cooling inflation environment combined with falling interest rates is gradually improving financing conditions and purchasing power.
Mortgage costs remain elevated compared to pre-inflation periods, but the combination of stabilizing prices and falling rates is creating a more balanced market environment. Real wage growth is beginning to catch up with property price increases in some sectors and regions.
The improved inflation outlook is supporting central bank policies that favor lower interest rates, which directly benefits mortgage affordability and property financing conditions. Construction costs have also stabilized after the inflationary spike, helping to moderate new home prices.
While affordability challenges persist, especially for first-time buyers, the trajectory is moving in a more favorable direction for potential property purchasers.
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.
Is there an oversupply or shortage of new housing developments in the main urban areas?
Poland faces a significant housing shortage of 1.5-2.2 million units nationwide, creating persistent upward pressure on property prices across all major urban areas.
Construction production is growing at approximately 1.6% annually, but this pace remains insufficient to meet long-term demographic and economic demand for housing. Some markets like Warsaw and Kraków suburbs are beginning to show signs of increased supply coming online, but overall inventory levels remain critically low.
The shortage is particularly acute in the affordable housing segment and new-build developments, where demand far exceeds supply in most major cities. Premium segments show better supply-demand balance in some areas, but middle-market housing continues to experience significant shortfalls.
Development pipeline data suggests that while more projects are being planned and initiated, the timeline to meaningfully address the housing deficit extends well into 2026-2027. Regulatory constraints, construction cost challenges, and labor shortages continue to limit the pace of new development.
This structural undersupply supports continued price growth and strong rental demand across Polish urban markets.
What's the unemployment rate and general economic outlook in Poland right now, and how does it affect housing demand?
Poland's unemployment rate stands at 5.4% as of July 2025, representing a slight increase from the previous year but remaining low by European Union standards.
The country's GDP is projected to grow 3-3.4% for 2025, supporting continued demand for housing from both domestic buyers and international investors. This stable economic growth provides a solid foundation for property market expansion and supports household income growth that enables property purchases.
The economic outlook is characterized as "stable" with moderate growth expectations, though some risks remain from global economic cycles and domestic inflation management challenges. Employment levels remain robust across most sectors, supporting mortgage qualification and property demand.
Strong economic fundamentals are contributing to sustained housing demand from both owner-occupiers and investors, with particular strength in urban areas where job growth is concentrated. The relatively low unemployment rate supports consumer confidence and borrowing capacity for property purchases.
Economic stability is also attracting foreign investment and international residents, adding additional demand pressure to urban property markets.
Are there government incentives, subsidies, or housing programs currently in place for buyers or investors?
Previous government mortgage subsidy programs ended in 2024, but a new "Housing Start" scheme may launch in late 2025 with price caps per square meter to support affordable housing development.
The "Rodzinny Kredyt Mieszkaniowy" (Family Housing Credit) program provides zero-deposit mortgages for first-time buyers, significantly reducing the initial capital requirements for property purchase. This program specifically targets young families and first-time homebuyers to improve market accessibility.
Local municipalities offer various programs including reduced property tax rates for certain developments, streamlined permitting processes for affordable housing projects, and land value capture mechanisms to support housing development. Some cities provide additional incentives for energy-efficient and sustainable housing projects.
The anticipated "Housing Start" program represents the government's recognition of the housing shortage crisis and commitment to supporting both demand and supply sides of the market. Details remain under development, but early indications suggest significant financial support for qualifying buyers and developers.
It's something we develop in our Poland property pack.
What do analysts and real estate agencies forecast for Polish property prices over the next 12 to 24 months?
Real estate analysts forecast property price increases of 3-8% for 2025 across major Polish cities, with prices expected to stabilize around the national inflation rate by year-end.
For 2026-2027, most forecasts project stronger price appreciation of 5-10% annually, assuming continued economic stability and persistence of the current demand-supply gap. These projections reflect expectations that the fundamental housing shortage will continue to drive price growth despite moderating from recent peak levels.
The forecasts assume that interest rates will continue declining gradually, improving affordability and supporting demand, while construction supply will increase modestly but remain insufficient to fully address the housing deficit. Regional variations are expected, with secondary cities potentially experiencing stronger growth as they catch up to major metropolitan markets.
Analysts caution that significant changes in interest rates, construction costs, or economic conditions could alter these projections, but the base case scenario supports continued property appreciation driven by structural market fundamentals.
The consensus view positions Poland as one of the more attractive European property markets for sustained growth potential over the next two years.
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 residential property market continues to demonstrate strong fundamentals with robust price growth, persistent supply shortages, and improving financing conditions.
While affordability challenges remain, the combination of falling interest rates, stable economic growth, and limited housing supply creates a favorable environment for property investment and ownership in Poland's major cities.
Sources
- Poland Price Forecasts - InvestRopa
- Poland Price History - Global Property Guide
- Average Rent Apartment Poland - InvestRopa
- How to Buy Property Poland - InvestRopa
- Property Purchase in Poland - Dudkowiak
- Polish Housing Market Growth - CIJ Europe
- House Prices Soar - TVP World
- Average Apartment Prices - Poland Insight
- Polish Mortgage Market Update - Mortgage Blog
- Poland Interest Rate - Trading Economics