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Poland's real estate market in 2025 is experiencing historic highs with selective regional variations. Property prices have surged nationwide by approximately 14% year-over-year as of September 2025, driven by supply shortages, elevated construction costs, and continued demand despite high mortgage rates.
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Poland's residential market shows strong price growth with Warsaw averaging 15,000-18,000 PLN/m², while regional cities like Gdańsk and Wrocław lead annual increases above 11%.
High mortgage rates above 7% and supply constraints continue driving market dynamics, with new builds outperforming older properties across major cities.
| City | Average Price per m² (PLN) | 12-Month Change |
|---|---|---|
| Warsaw | 15,000-18,000 | Modest growth/slight decline |
| Kraków | 14,000-15,000 | Modest growth/slight decline |
| Gdańsk | 16,000-17,500 | +11% annual increase |
| Wrocław | Around 15,000 | +11% annual increase |
| National Average | - | +14% year-over-year |
What are the current average apartment prices per square meter in Poland's major cities?
As of September 2025, Poland's major cities show significant price variations with Warsaw leading the market at the highest price points.
Warsaw commands the highest prices at 15,000-18,000 PLN per square meter, with premium central districts reaching up to 22,515 PLN/m². The capital's market reflects its status as Poland's economic center and most sought-after location for both domestic and international buyers.
Gdańsk follows closely with prices ranging from 16,000-17,500 PLN/m², making it the second most expensive major city. The coastal location and strong local economy continue to drive demand in this Baltic Sea port city.
Wrocław maintains steady pricing around 15,000 PLN/m², reflecting its growing importance as a business and technology hub in southwestern Poland. The city has seen consistent growth due to its strategic location and expanding job market.
Kraków, despite being a major tourist and cultural center, shows relatively more affordable pricing at 14,000-15,000 PLN/m², though premium locations within the historic center command higher rates.
How have Poland's real estate prices changed over the past 12 months?
Poland's residential market experienced substantial nationwide growth of approximately 14% year-over-year as of September 2025.
Wrocław and the Tri-City area (Gdańsk, Gdynia, Sopot) led the country with annual increases exceeding 11%. These regional markets benefited from strong local economies, limited supply, and growing demand from both residents and investors seeking alternatives to Warsaw's premium pricing.
Warsaw and Kraków showed more mixed performance with modest growth in some areas and selective declines in others. Central Warsaw experienced some softening, with studio apartments dropping by up to 1,000 PLN/m² in certain districts over the year.
Regional cities beyond the major centers also participated in the growth trend, though at varying rates depending on local economic conditions and supply-demand dynamics. The nationwide increase reflects broader economic factors including inflation, construction cost pressures, and continued urbanization trends.
It's something we develop in our Poland property pack.
Are new build prices performing differently than older apartment prices?
The Polish market shows a clear distinction between primary market (new builds) and secondary market (older apartments) performance in 2025.
New build apartments command significantly higher prices and demonstrate greater resilience against market corrections. Developers maintain premium pricing due to elevated construction costs, modern amenities, and energy efficiency standards that appeal to contemporary buyers.
Older apartments in the secondary market face more price pressure, particularly for larger units. This segment has experienced more notable corrections as buyers become increasingly selective about condition, location, and energy efficiency ratings.
Studios and smaller apartments preserve value better across both segments compared to larger units. The preference for compact, efficient living spaces continues to support pricing for these property types regardless of age.
The performance gap between new and old properties reflects changing buyer preferences, financing considerations, and the impact of energy efficiency requirements on property desirability.
How do current mortgage rates affect buyer affordability and demand?
Poland's mortgage market in September 2025 operates with rates exceeding 7% for new loans, creating significant affordability challenges.
| Rate Factor | Current Status | Impact on Market |
|---|---|---|
| New Mortgage Rates | Above 7% | Reduced affordability |
| Approval Rates | Lower year-over-year | Fewer qualified buyers |
| Credit Criteria | Stricter standards | Limited access |
| Rate Outlook | Potential cuts expected | Cautious optimism |
| Transaction Volume | Below previous levels | Slower market activity |
What's happening with rental yields in Poland's major cities?
Rental yields across Poland's major cities currently range between 5-6% gross, with Warsaw and Kraków achieving rates on the higher end of this spectrum.
Rising rental rates have not kept pace with purchase price increases, resulting in yield compression over the past year. This dynamic particularly affects investors who purchased properties at recent peak prices, reducing their overall return expectations.
Some investors are choosing to sell their properties, especially those who acquired assets during the highest price periods. The combination of elevated purchase prices and moderate rental growth has made the investment equation less attractive for yield-focused buyers.
Despite yield compression, rental demand remains strong in major cities due to continued urbanization, student populations, and professionals relocating for work opportunities. This underlying demand provides stability for rental income even if yields have moderated.
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Is there sufficient new housing supply meeting current demand in Poland?
Poland faces notable supply shortages, particularly in the new construction segment across major urban markets.
While property listings have increased compared to previous periods, new completions are not adequately meeting demand in the most desirable urban areas. This supply-demand imbalance continues to exert upward pressure on prices, especially for newly completed homes.
Construction industry challenges including labor shortages, regulatory approvals, and elevated material costs have slowed new project delivery timelines. Developers face extended development cycles that limit their ability to respond quickly to market demand.
The shortage is most pronounced in prime locations within major cities, where land availability is limited and development costs are highest. This creates particular challenges for first-time buyers and those seeking move-in ready properties.
Regional markets outside major cities show more balanced supply conditions, though infrastructure and employment considerations limit their appeal for many buyers.
What role do foreign buyers play in Poland's real estate market?
Foreign buyers have increased their activity in Poland's real estate market but remain a secondary rather than primary driving force.
Ukrainian buyers represent a significant portion of foreign demand, driven by proximity, economic ties, and recent geopolitical developments. Western European and Asian investors also participate, though typically in smaller numbers and focused on premium segments.
Foreign investment concentrates primarily in premium developments and new construction projects in major cities. These buyers often seek modern amenities, professional property management, and established legal frameworks that provide security for international ownership.
The impact varies by location and price segment, with foreign buyers having more noticeable influence in luxury markets and central urban districts compared to suburban or secondary city markets.
Currency considerations and international economic conditions affect foreign buyer activity levels, creating some volatility in this market segment.
What government policies could impact Poland's property prices?
Several key government policies are actively shaping Poland's real estate market dynamics in 2025.
The modified "Safe Mortgage" subsidy program creates both opportunities and market volatility through changing eligibility criteria and funding levels. These adjustments cause temporary demand surges followed by cooling periods as buyers adapt to new requirements.
Potential tightening of short-term rental regulations could affect investor demand for certain property types, particularly in tourist-heavy areas and city centers where Airbnb-style rentals are common.
Ongoing discussions about restrictions for institutional investors may limit large-scale property acquisitions, potentially affecting pricing in premium segments where these buyers are most active.
Tax policy changes affecting property ownership, rental income, and capital gains continue to influence investment decisions and market participation rates among different buyer categories.
It's something we develop in our Poland property pack.
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 construction costs affecting new housing prices in Poland?
Construction and materials costs in Poland remain significantly elevated compared to pre-2020 levels, directly impacting new housing prices.
While cost inflation is showing signs of slowing, construction expenses continue rising at rates that exceed general inflation. Materials costs, labor wages, and equipment expenses all contribute to sustained pressure on development budgets.
Developers respond to these cost pressures by adjusting pricing strategies, often passing increased expenses to buyers through higher per-square-meter rates for new builds. This dynamic particularly affects the primary market where construction costs directly translate to sale prices.
Supply timeline extensions result from cost management efforts as developers seek to optimize materials sourcing and construction scheduling. These delays can further constrain new housing availability and support price increases.
Energy efficiency requirements and building standard improvements add additional costs that developers factor into pricing, though these investments often enhance long-term property value and marketability.
What's the current state of mortgage demand and approval rates?
Poland's mortgage market shows reduced demand and tighter approval standards compared to the previous year.
Mortgage applications have declined as high interest rates price out many potential buyers and existing homeowners avoid refinancing or relocating. The combination of elevated rates and stricter lending criteria creates a more restrictive financing environment.
Bank approval rates have decreased year-over-year due to enhanced credit risk assessment and regulatory requirements. Lenders apply more stringent income verification and debt-to-income ratio standards that eliminate marginal borrowers.
Some market improvement is anticipated if interest rates decline further, but the current environment remains challenging for new buyers. Even approved borrowers face higher monthly payments that limit their purchasing power compared to previous years.
Cash buyers gain competitive advantages in this environment, as they avoid financing delays and can often negotiate better prices with sellers seeking certainty and speed in transactions.
How do inflation and economic conditions tie into future real estate price trends?
Poland's inflation environment, while showing signs of moderation from previous peaks, continues influencing real estate market dynamics.
High inflation rates over recent years contributed to rising property prices as real estate serves as an inflation hedge for both domestic and international investors. This investment motivation remains active among buyers concerned about currency depreciation and savings erosion.
Economic growth prospects and employment conditions in major cities support continued housing demand, particularly in technology and service sectors that drive urban expansion. Strong local economies in cities like Wrocław and Gdańsk maintain population growth and housing needs.
Currency stability considerations affect foreign investment flows and domestic buyer behavior. Złoty performance relative to major international currencies influences cross-border property investment decisions.
Interest rate policy decisions by Poland's central bank will significantly impact both mortgage costs and investment returns, creating uncertainty for buyers and sellers planning transactions.
It's something we develop in our Poland property pack.
What are expert forecasts for Poland's property prices in the next 12 months?
Most real estate experts and major agencies project price stabilization or slight additional increases for Poland's residential market through 2026.
Warsaw may experience modest price declines in some outlying districts as the market adjusts to reduced demand and increased supply in certain areas. Central Warsaw locations are expected to maintain pricing better due to limited availability and continued premium demand.
Gdańsk and other regional growth centers could see continued steady price gains driven by supply shortages and strong local economic performance. These markets benefit from more affordable entry points compared to Warsaw while offering growth potential.
New build segments are expected to maintain premium pricing due to sustained construction costs and limited supply, while secondary market properties may face more pricing pressure, especially for larger units requiring renovation.
Market activity levels are anticipated to remain below historical averages until mortgage rates decrease significantly, creating a period of price stability rather than dramatic changes in either direction.
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 real estate market in 2025 reflects a maturing economy with regional variations that reward informed buyers and investors.
Supply constraints and elevated financing costs are creating opportunities for cash buyers while challenging traditional mortgage-dependent purchasers across major urban markets.
Sources
- Poland Real Estate Market Analysis
- Poland Insight - Average Apartment Prices
- Poland Weekly - Apartment Price Trends
- Poland Price Forecasts
- Atlant Estates - Secondary Market Report
- Realting - Warsaw Apartment Prices
- Velora Estate - Investment Market
- Mortgage Blog - Market Update
- Knight Frank - Market Review
- LinkedIn - Luxury Market Analysis