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Everything you need to know before buying real estate is included in our Poland Property Pack
What will happen in Poland’s real estate market? Will prices go up or down? Is Warsaw still a hotspot for foreign investors? How is Poland’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Poland, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Rental yields in Wrocław will drop because of too many new apartments
Wrocław's real estate market is seeing a huge influx of new apartments.
In just a few years, the city has nearly doubled its number of new flats, jumping from about 4,500 to over 8,700 by September 2024. This boom in construction has led to more apartments than there are people looking to rent.
Real estate agencies are noticing a flood of new apartment listings, which means there's an oversupply. Wrocław's vacancy rate hit 17.3% in 2023, much higher than Szczecin's 3.1%. When there are too many empty apartments, landlords often drop rental prices to fill them, which cuts into rental yields.
Unlike Kraków and Poznań, where rents are climbing, Wrocław's rental prices have been slipping. This drop is directly tied to the oversupply of apartments. Developers are still planning more projects, which could worsen the oversupply.
For potential buyers, this means you might snag a deal, but don't expect high rental returns. The market is saturated, and with more apartments on the way, rental yields are likely to stay low.
Sources: Savills Report, Property Forum
2) Property prices in Kraków's historic districts will rise as cultural tourism grows
Kraków's historic districts are set for a property price boost thanks to a remarkable rise in cultural tourism.
In 2023, the city welcomed 12.18 million visitors, a significant jump of 45% from the previous year. This influx of tourists brought in estimated revenues of PLN 10.6 billion, showcasing the city's growing appeal. The European Games, held in Kraków in 2023, played a big role in this surge, with a 94% increase in visitors in July compared to the same month in 2022.
Kraków's historic center, known for its UNESCO-listed architecture, continues to be a magnet for those seeking cultural experiences. The city's commitment to enhancing its cultural landscape is evident in its investments in cultural institutions and infrastructure, such as the KL Plaszow Museum.
These efforts not only preserve Kraków's rich history but also make it a more attractive destination for cultural tourists. As more people flock to the city to explore its historic sites, the demand for property in these areas is likely to rise.
For potential property buyers, this trend indicates a promising opportunity. Investing in Kraków's historic districts could be a smart move as the city's cultural tourism continues to thrive.
Sources: Inside the Games, Krakow Convention Bureau
In this video, we can see that Kraków's rich cultural heritage and growing tourism appeal are enhancing the value of properties in historic districts. The video highlights the city's increasing popularity as a tourist destination and its impact on real estate investment.
3) Rental yields in Kraków will drop as property prices rise faster than rents
Kraków's property prices have skyrocketed recently, making it a hot topic for potential buyers.
In May 2024, home prices in Kraków jumped by 81.1% compared to the previous year, hitting a median of $480K. This isn't just a blip; over the past five years, Kraków has seen a 105% increase in property values, outpacing other major Polish cities. If you're considering buying, this trend is something to keep an eye on.
Despite these soaring prices, rental yields in Kraków have stayed pretty steady, hovering between 3.44% and 6.09%, with an average of 4.5%. This means that while property prices are climbing, rent isn't catching up as quickly. Real estate agencies are noticing a slowdown in rent growth, thanks to more properties becoming available and a rise in vacancy rates, which has nudged rental rates down a bit.
Looking ahead, experts predict that Kraków's property market will keep attracting investment. Flat prices are expected to climb even more in late 2024 and into 2025. If new government programs like “Apartment for a Family” roll out, we could see property prices soar even higher, leaving rent growth in the dust.
There's also a wave of new housing units set to hit the market in 2024. This could shake things up by reducing vacancy rates, but it might also mean lower rental yields as the supply of available properties increases. For investors, this could be a double-edged sword.
Sources: Global Property Guide, Redfin, Property Forum, Knight Frank
4) Rental yields in Warsaw will rise as more international businesses move in
Rental yields in Warsaw are climbing, with the average gross rental yield expected to hit 6.03% by late 2024.
Why the rise? Well, international businesses are flocking to Warsaw, drawn by its strategic location and business-friendly vibe. This influx is making the city a hot spot for companies eager to expand.
As these businesses set up shop, expats and international employees are pouring in, driving up demand for rental properties. This surge in new residents is a key factor in the increasing rental yields.
Warsaw isn't just sitting pretty; it's actively improving. Infrastructure upgrades and urban projects are in full swing, making the city even more livable and attractive for both residents and businesses, which in turn supports the rental market's growth.
Population growth is another piece of the puzzle. As more people move to Warsaw, the demand for housing naturally rises, pushing rental yields higher and offering better returns for property investors.
Reports consistently highlight Warsaw as a top business hub, thanks to its access to skilled workers and excellent transport links. These perks make it a prime spot for international companies, further fueling the rental property demand.
Sources: Global Property Guide, Property Forum, EIB, Chambers Practice Guides, Global Property Guide
5) Demand for smaller, accessible homes in Poland will grow as the population ages
Poland's aging population is reshaping the housing market, driving demand for smaller, more accessible homes.
In 2023, 18.70% of Poles were aged 50-64, and by 2050, 40% will be over 60. This shift means more people will need homes that suit older adults. Seniors in medium-sized cities are already showing a strong preference for homes without architectural barriers and with essential services, indicating a clear demand for age-friendly housing solutions.
The real estate market is catching on. In 2024, there's a noticeable trend towards smaller housing units, with apartment prices under 700 square feet reflecting this demand. This isn't just about size; it's about creating spaces that are easy to navigate and maintain, which is crucial for older residents.
Government reports and urban planning initiatives are also stepping up. They're integrating senior citizens' housing preferences into policy-making processes, which is crucial for sustainable urban development. The Model Senior’s Flat project in Warsaw is a prime example, offering self-reliant living solutions for the elderly and emphasizing the importance of accessible housing.
For those considering buying property in Poland, this trend is worth noting. As the population ages, the demand for smaller, more accessible homes will likely continue to grow, making it a potentially smart investment. Understanding these dynamics can help you make informed decisions in the Polish real estate market.
Sources: EUROSTAT Data, Notes from Poland, Seniors' Housing Preferences in Medium-Sized Cities in Poland, A Brief Overview of the Changing Housing Market in Poland
From this video, we realize that Poland's aging population is shaping housing demand, with a focus on smaller, accessible homes. The video highlights projections indicating that the population aged 60+ will grow significantly, emphasizing the need for tailored housing solutions.
6) Demand for properties with home office spaces in Poland will grow
In Poland, remote work has transformed how people live and work.
Back in 2023, nearly 80% of the workforce was engaged in remote work, with a significant portion, about 18%, working entirely from home. This shift has made people rethink their living spaces, prioritizing areas that can double as workspaces.
As companies embraced remote solutions, the demand for home office setups skyrocketed. People are investing in ergonomic furniture to ensure comfort and productivity, which is expected to keep growing in Poland through 2029. This trend is not just about comfort; it's about creating a professional environment at home.
Interestingly, many homebuyers now look for properties with dedicated office spaces. Even though the number of full-time remote workers dipped slightly in 2023, the hybrid work model remains popular. This has led to a noticeable shift in real estate, with buyers seeking homes that offer flexibility for work-from-home arrangements.
In the real estate market, homes with adaptable spaces are becoming hot commodities. Buyers want the option to seamlessly switch between work and personal life without leaving their homes. This demand is reshaping how properties are designed and marketed.
For anyone considering buying property in Poland, having a home office is increasingly seen as a valuable asset. It's not just about having a desk and chair; it's about having a space that enhances productivity and work-life balance.
Sources: Statista - Remote Work in Poland, Statista - Home Office Furniture in Poland, Statista - Share of People Using Remote Work in Poland
7) Demand for energy-efficient homes in Poland will grow as consumers prioritize sustainability
Polish homebuyers are increasingly drawn to energy-efficient properties for several compelling reasons.
One major factor is the rising energy costs in Poland. Even though there was a freeze on retail electricity prices until September 2025, the introduction of dynamic tariffs means prices can fluctuate based on supply and demand. This makes energy efficiency a smart way for households to keep their bills in check.
The Polish government is also playing a big role by offering incentives for energy-efficient home improvements. Through a system of white certificates, companies are encouraged to modernize buildings and industrial processes. This not only boosts energy efficiency but also makes it more attractive for consumers to invest in these upgrades.
Polish consumers are becoming more environmentally conscious, too. Since April 2023, every building must have a building energy certificate, which has heightened awareness about energy needs and performance. This requirement nudges homeowners to seriously consider energy-efficient solutions.
In the countryside, where homes are often older and less efficient, these factors are even more pronounced. Many rural properties are being retrofitted with modern insulation and solar panels, making them more appealing to buyers looking for long-term savings.
As energy prices continue to be unpredictable, and with government incentives in place, energy-efficient homes are becoming a top priority for Polish consumers. This trend is reshaping the real estate market, especially in rural areas where traditional homes are getting modern makeovers.
Sources: ING Think, Trade.gov, Baker McKenzie
8) Poland will see more large family homes available as the birth rate continues to fall
Poland's birth rate is at a historic low, with only 272,000 live births in 2023, an 11% drop from the previous year.
Over the past decade, Poland's population has decreased by nearly one million, reflecting a significant demographic shift. The average age for first-time mothers is now 25.8 years, with most women having children in their early thirties. This delay in starting families is becoming the norm.
Single-person households are on the rise, making up 8.70% of the population in December 2023, compared to 8.50% the previous year. This trend points to a growing preference for smaller family units, which could impact housing demand.
With fewer births and more people living alone, larger family homes may become more available in the market. This could be an opportunity for buyers looking for spacious properties in Poland's countryside.
As the population ages and family sizes shrink, the demand for smaller, more manageable homes is likely to increase. This shift could lead to a surplus of larger homes, offering potential bargains for those interested in rural living.
Sources: Notes from Poland, Statista, Trading Economics
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.
9) Demand for affordable housing in border areas will rise due to an influx of Ukrainian immigrants
The influx of Ukrainian immigrants into Poland has been significant in recent years.
In 2023, nearly a million Ukrainians with temporary-protection status were registered in Poland. This large number of newcomers naturally boosts the demand for housing, especially in border regions where many first arrive. As more people settle, the demand for rental properties has surged. For instance, Warsaw saw its population increase by 17% due to 300,000 refugees, putting pressure on the housing market and driving up rental prices.
The need for affordable housing is critical as many immigrants seek cost-effective living options. However, Poland already faces a severe shortage of affordable public housing, with long waiting lists and strict eligibility criteria. This shortage makes it even more challenging for new immigrants to find suitable housing. Local governments are trying to address this by accelerating housing programs and extending funding options to meet the needs of the growing immigrant population.
In border regions, the situation is particularly acute. The influx of immigrants has led to a noticeable increase in demand for affordable housing. This trend is reshaping local real estate markets, with more properties being snapped up quickly. For potential buyers, this means a competitive market where acting fast is crucial.
Insider knowledge suggests that some areas are seeing a shift in demographics, with new communities forming and revitalizing neighborhoods. This can be an opportunity for those looking to invest in property, as these areas may experience growth and development in the coming years. However, it's essential to be aware of the challenges, such as the ongoing housing shortage and the need for more infrastructure to support the growing population.
Sources: bpb.de, Notes from Poland, Habitat for Humanity
10) Young professionals will flock to Warsaw's Praga district for affordable housing options
Warsaw's Praga district is becoming a hotspot for young professionals seeking affordable housing.
With property prices in central Warsaw skyrocketing by 78% over the past five years, many are turning to Praga for more budget-friendly options. This shift is making Praga an appealing choice for those who want to enjoy city life without spending a fortune. The district offers a unique blend of affordability and urban living, attracting a younger crowd eager to settle in a vibrant area.
The City of Warsaw is investing heavily in Praga's infrastructure, enhancing its appeal. The new line D of the Prague metro and expanded pedestrian and bicycle paths have significantly improved accessibility. These developments make Praga a convenient choice for young professionals who rely on public transport, offering them a seamless commute to work and leisure activities.
Praga's charm is further boosted by the government's Integrated Revitalisation Programme, which focuses on preserving historic buildings. This initiative not only maintains the district's unique character but also adds to its cultural appeal. Young professionals who appreciate cultural heritage are drawn to Praga's distinctive vibe, where history meets modern living.
Insider knowledge reveals that Praga is not just about affordability; it's about lifestyle. The district is home to a growing number of trendy cafes, art galleries, and music venues, creating a lively atmosphere. This vibrant scene is a magnet for young people looking for a dynamic and engaging community.
As Praga continues to evolve, it offers a promising future for those seeking a balance between cost and quality of life. The district's ongoing transformation is a testament to its potential as a thriving hub for young professionals. With its unique blend of affordability, culture, and convenience, Praga is poised to become one of Warsaw's most sought-after neighborhoods.
Sources: Vander Vorm Living, Property Forum, Whitemad
11) Property values in flood-prone areas of Poland will rise due to flood prevention efforts
Flood prevention efforts in Poland are boosting property values in at-risk areas.
Take Wrocław, for example. After the Odra River Basin Flood Protection Project, property values soared because the flood risks dropped significantly. This isn't just a one-off; it's a pattern seen in places where flood prevention is prioritized.
The Polish government is pouring €1.5 billion into flood prevention infrastructure. This massive investment is not just about safety; it's about making these areas more attractive to potential buyers. With the World Bank also chipping in, it's clear that these projects are expected to bring substantial economic benefits.
Experts agree that infrastructure improvements like flood barriers are game-changers. They don't just keep the water out; they draw in buyers and investors. When a property is in a flood-resistant area, it becomes a hot commodity on the real estate market.
Another perk of living in these areas is the reduced insurance premiums. Insurers love properties with flood prevention measures, and so do buyers. It makes the properties more affordable in the long run, adding another layer of appeal.
Sources: Intellinews, MDPI, Flood Risk America
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12) Property prices in Silesia will surge as investment in green energy projects grows
The Silesian region is on the brink of a property boom, thanks to massive investments in green energy.
One standout project is a hydrogen production plant in Silesia, with a hefty price tag of EUR 1.5 – 2 billion. This isn't just any investment; it's a joint venture with the Industrial Development Agency, aiming to tap into funds from the European Hydrogen Bank. Such a project is a game-changer, setting the stage for a surge in property demand as more people flock to the area for new opportunities.
Adding to the buzz, Intel is making waves with its USD 4.6 billion investment in the Legnica Special Economic Zone, which includes parts of Lower Silesia. This isn't just about money; it's about creating 2,000 new jobs. With more jobs, the region's economy is set to thrive, and as a result, the demand for housing is expected to skyrocket, pushing property prices up.
The Polish government is also playing a crucial role by backing renewable energy projects. Through initiatives like the Fair Transformation Fund, significant funds are being funneled into Upper Silesia. This support not only fuels the growth of green energy but also makes the region more appealing to both residents and investors.
With these developments, Silesia is transforming into a hub of economic activity. The combination of government support and foreign investments is creating a perfect storm for a property boom. As more people move in for jobs and opportunities, the demand for housing is set to rise, making it a hot spot for property buyers.
Sources: Poland Weekly, Trade.gov, PAIH
13) Property values in Łódź will rise as it becomes a key logistics hub in Europe
Łódź is quickly becoming a central logistics hub in Europe, which is set to boost property values.
With the expansion of the Central European Logistics Hub to over 630,000 square meters, Łódź is attracting big players in logistics and e-commerce. This makes the city a hotspot for logistics activities, drawing in major companies looking for a strategic base. The demand for warehouse and distribution space is strong, with a 19% increase in 2024 compared to the previous year, signaling a healthy growth path for the logistics sector.
Government initiatives are also in play, promoting Łódź as a logistics hub by offering incentives, especially in manufacturing and business services. This support is crucial for sustaining the city's growth and making it an attractive option for businesses. Improved transportation links are another key factor. The EU-funded project at Łódź Fabryczna railway station has boosted connectivity to major European cities, enhancing the city's appeal for logistics operations.
Łódź's strategic location, coupled with modern road infrastructure, positions it as an ideal spot for logistics facilities serving various parts of Europe. This makes it a prime choice for companies looking to optimize their distribution networks. The city's transformation into a logistics powerhouse is not just about infrastructure; it's about becoming a central node in the European logistics map.
As Łódź continues to grow, the ripple effect on property values is expected to be significant. The city's evolution into a logistics hub is a game-changer, offering new opportunities for investors and businesses alike. With all these developments, Łódź is not just a place to watch; it's a place to invest in.
Sources: Panattoni Europe, KPMG Report, EU Regional Policy, Property Forum
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.