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Poland's residential property market continues to show strong momentum in 2025, with apartment prices rising across major cities.
Warsaw, Kraków, and Gdańsk are experiencing significant price increases of 15-23% year-on-year, though the pace is moderating compared to the explosive growth of 2023-2024. Foreign buyers remain highly active, mortgage rates are stabilizing, and government subsidies are creating new demand dynamics in the market.
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Poland's major cities are seeing apartment prices rise 15-23% annually as of September 2025, with Warsaw leading at 18,000-20,000 PLN/m².
Foreign investment remains strong, mortgage rates are at 7.37%, and new government subsidies are expected to boost first-time buyer demand.
| City | Price per m² (PLN) | Annual Growth Rate |
|---|---|---|
| Warsaw | 18,000-20,000 | 20-23% |
| Kraków | 15,000-20,000 | 17-20% |
| Gdańsk | 12,400-17,500 | 10-15% |
| Market Liquidity | 50-61 days | Improving |
| Mortgage Rate | 7.37% | Stabilizing |
| Foreign Buyers | 30-36% | Very Active |
| Rental Yields | 5-6% | Stable |
What's the current average price per square meter for apartments in major Polish cities like Warsaw, Kraków, and Gdańsk?
As of September 2025, apartment prices in Poland's major cities have reached significant levels across different segments.
Warsaw leads the market with apartment prices ranging from 18,000 to 20,000 PLN per square meter citywide. Premium districts in the capital exceed 25,000 PLN/m², making it the most expensive residential market in Poland. The city center and areas like Żoliborz, Mokotów, and Wilanów command the highest prices due to their proximity to business districts and superior infrastructure.
Kraków follows closely with prices between 15,000 and 20,000 PLN per square meter, with the city average around 16,600 PLN/m². The historic city center and popular districts like Kazimierz and Podgórze have seen particularly strong price appreciation. Some neighborhoods have experienced over 100% price growth in the past five years, reflecting Kraków's appeal to both residents and investors.
Gdańsk offers relatively more affordable options at 12,400 to 17,500 PLN per square meter. The coastal city benefits from its strategic location, growing tech sector, and appeal as a residential destination. Areas near the Baltic Sea and the revitalized city center command premium prices within this range.
These price levels reflect Poland's economic growth, urbanization trends, and strong demand from both domestic and international buyers.
How much have these prices changed in the past 12 months, and what's the percentage increase or decrease?
Polish apartment prices have experienced substantial growth over the past year, though the pace is moderating from previous peaks.
Warsaw has seen the strongest price appreciation with increases of 20-23% year-on-year. This growth rate, while still significant, represents a slowdown from the explosive gains of 2023-2024 when some areas experienced even higher increases. The capital's robust job market, population inflow, and limited housing supply continue to drive prices upward.
Kraków recorded annual price increases of 17-20%, maintaining its position as one of Poland's fastest-growing real estate markets. The city's combination of tourism, education, and business development creates consistent demand pressure. Certain districts have outperformed the city average, particularly those undergoing urban renewal or infrastructure improvements.
Gdańsk shows more moderate but still substantial growth at 10-15% annually. The coastal city's price increases reflect its growing appeal as both a residential destination and investment location. Some local areas have experienced surges above the city average, particularly near new development projects and transport connections.
These growth rates significantly exceed inflation and wage increases, contributing to affordability concerns across all three cities.
Are new construction projects still being launched at the same pace, or is supply slowing down?
The pace of new construction in Poland has notably decelerated in 2025, signaling a shift in market dynamics.
Building permits have fallen by over 20% year-on-year in early 2025, indicating developers are becoming more cautious about new project launches. New housing starts are down 13% compared to the first quarter of 2024, representing a significant cooling from previous years' expansion. This decline reflects developers' concerns about financing costs, regulatory changes, and market absorption rates.
However, developers are not abandoning the market entirely. Ongoing completions from projects initiated in previous years maintain moderate supply levels, though the pipeline of future projects is thinning. Many developers are focusing on completing existing commitments while reassessing their new project strategies based on market conditions and financing availability.
The construction industry is experiencing stabilization at a high level rather than collapse. Established developers with strong financial positions continue selective new launches, particularly in prime locations where demand remains robust. Smaller developers face greater challenges securing financing and pre-sales commitments.
Market analysts forecast continued stabilization unless new demand-side stimulus emerges from government programs or economic factors.
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What's the current average mortgage interest rate in Poland, and how does it compare with last year?
Poland's mortgage interest rates have stabilized at elevated levels compared to historical norms.
The average mortgage interest rate stands at 7.37% as of June 2025, representing a slight decline from the peaks reached in 2023-2024. This rate remains well above pre-pandemic levels when borrowers could secure financing at 2-3%. The National Bank of Poland's reference rate is currently 4.75% after recent cuts, providing some relief to borrowers but maintaining restrictive monetary policy.
Compared to last year, mortgage rates have improved marginally. The central bank's gradual easing cycle has helped reduce borrowing costs from their highest levels, though rates remain significantly elevated. Banks are passing through some of these reductions to customers, but credit risk assessments and margin requirements keep mortgage rates relatively high.
The current rate environment makes property purchases more expensive for leveraged buyers. A typical mortgage payment on a 500,000 PLN apartment requires substantially higher monthly commitments than during the low-rate period of 2020-2022.
Market expectations suggest further gradual rate reductions over the next 12 months, though significant declines are unlikely given inflation concerns and economic conditions.
How easy is it for buyers to get financing right now, and what are the main barriers to approval?
Mortgage financing in Poland has become significantly more restrictive, creating substantial barriers for many potential buyers.
Banks now require higher minimum down payments of 10-20% of the property value, compared to more flexible arrangements available in previous years. Lending institutions have implemented strict proof-of-income requirements, demanding comprehensive documentation of employment stability and earnings history. Loan-to-income ratios are capped at conservative levels, limiting borrowing capacity even for qualified applicants.
The main barriers to mortgage approval include demonstrating stable, verifiable income that meets debt-to-income requirements. Many banks require employment contracts extending beyond the loan term or substantial self-employment income history. Credit history must be pristine, with any past defaults or payment issues significantly impacting approval chances.
Foreign buyers face additional challenges, including residency requirements, local income verification, and currency risk assessments. EU citizens have easier access than non-EU nationals, but all foreign applicants must navigate more complex documentation requirements.
Some buyers benefit from new government programs offering first-time buyer subsidies and loan guarantees through the "Pierwsze Klucze" (First Keys) initiative launching in the second half of 2025. These programs provide down payment assistance and interest rate subsidies for qualifying purchases, though they come with price caps and eligibility restrictions.
It's something we develop in our Poland property pack.
Are rental yields in big cities keeping up with rising purchase prices, or are they starting to lag?
Rental yields in Poland's major cities remain relatively attractive despite rising purchase prices, though pressure is mounting in prime locations.
Warsaw and Kraków currently offer gross rental yields of approximately 5-6%, which remains competitive in the European context. These yields reflect strong rental demand driven by population migration, tourism recovery, and continued urbanization trends. The rental market benefits from limited housing stock and growing demand from both long-term residents and short-term visitors.
However, rental income growth is not always keeping pace with purchase price appreciation. In prime central locations where property prices have surged most dramatically, net yields are experiencing downward pressure. Investors in these areas are increasingly relying on capital appreciation rather than rental income for returns.
Rental demand remains robust across all major cities, supported by migration patterns, university enrollment, and business sector growth. Tourist-heavy areas like Kraków's city center benefit from both long-term rental demand and short-term rental opportunities, though regulatory changes may impact Airbnb-style rentals.
The rental market shows resilience due to Poland's demographic trends and economic development. Young professionals, students, and international workers continue driving demand, while housing affordability challenges push more residents toward renting rather than buying.
How many days on average does a property stay on the market before it's sold?
The Polish property market demonstrates good liquidity with reasonable transaction times across major cities.
Apartments typically remain on the market for 50-61 days before sale completion, representing improved liquidity compared to 2023 when market uncertainty led to longer selling periods. This timeframe varies significantly based on property quality, location, and pricing strategy. Well-priced properties in desirable locations often sell within 30-40 days, while overpriced or problematic properties may remain available for several months.
Market liquidity improvements reflect stabilizing buyer confidence and clearer pricing expectations. Both buyers and sellers have adjusted to current interest rate environments and pricing levels, reducing negotiation periods and decision-making delays. Professional marketing and realistic pricing contribute to faster sales cycles.
Premium properties and new developments in prime locations experience shorter marketing periods due to limited supply and strong demand. Conversely, older properties requiring renovation or those in less desirable locations face longer selling periods and may require price adjustments to attract buyers.
The current market environment favors prepared sellers with realistic pricing and quality properties, while buyers benefit from improved selection and more predictable transaction timelines.
Are foreign buyers still actively investing in Polish real estate, or has that slowed down?
Foreign investment in Polish real estate remains exceptionally strong, showing no signs of significant slowdown.
Foreign buyers account for 30-36% of transactions in many new developments, representing sustained high levels of international interest. This percentage demonstrates that Poland continues to attract substantial foreign capital despite global economic uncertainties and higher financing costs. The composition includes Ukrainian and Belarusian buyers seeking stable investment destinations, EU citizens taking advantage of freedom of movement, and Asian investors diversifying their portfolios.
Ukrainian buyers have become particularly prominent following the 2022 conflict, with many seeking permanent relocation and investment opportunities in Poland. Their purchases often focus on family housing and long-term residence rather than purely speculative investment. Belarusian buyers continue investing amid political instability in their home country.
EU citizens, particularly Germans, Dutch, and Scandinavians, maintain strong interest in Polish real estate due to attractive pricing compared to their home markets. Asian investors, primarily from China and other regional countries, view Poland as an entry point to European property markets with growth potential.
No major retrenchment by foreign buyers has occurred despite changed market conditions. Demand remains stable or even rising among key investor groups, supported by Poland's EU membership, economic stability, and relative affordability compared to Western European markets.
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What government policies, subsidies, or regulations are currently influencing demand and supply?
The Polish government has introduced several significant policies affecting the real estate market in 2025.
The "Pierwsze Klucze" (First Keys) program launching in the second half of 2025 represents the most substantial intervention. This initiative provides mortgage subsidies, down payment guarantees, and price caps for first-time buyers, potentially boosting demand in the affordable housing segment. The program targets young families and individuals who previously struggled with financing access, though it includes restrictions on property prices and buyer eligibility.
Lending reforms have tightened mortgage regulations, requiring banks to maintain stricter loan-to-income ratios and down payment requirements. These changes aim to prevent excessive household debt accumulation but also limit access for some potential buyers. The regulations particularly impact higher-risk borrowers and those seeking maximum leverage.
Property tax discussions continue at municipal levels, with some cities considering increases that could affect investment returns. While changes remain limited, potential tax increases create uncertainty for long-term investors. REIT legislation development may provide new investment vehicles for real estate exposure.
EU regulations on energy efficiency and building standards influence construction costs and property values. New environmental requirements increase development expenses but potentially enhance long-term property values through improved energy ratings.
It's something we develop in our Poland property pack.
How are wages and household incomes evolving compared to property prices in Poland?
The relationship between wages and property prices in Poland has become increasingly strained, creating significant affordability challenges.
Wages are rising at approximately 10% annually in major urban centers, reflecting Poland's strong economic growth and tight labor market conditions. Professional sectors, technology, and financial services show particularly strong wage growth, benefiting skilled workers in major cities. Government sector employees and those in traditional industries experience more modest increases.
However, property prices have outpaced income growth for several consecutive years, pushing affordability to multi-year lows in core cities. The gap between price appreciation (15-23% annually) and wage growth (10% annually) means housing requires an increasingly larger portion of household income. This divergence particularly affects first-time buyers and younger demographics seeking to enter the property market.
The income-price gap has reached levels that prompt growing interest in government subsidies and alternative homeownership models. Many potential buyers find themselves priced out of their preferred locations or forced to compromise on property size and quality. The situation drives demand for rental housing and shared accommodation arrangements.
Regional variations exist, with smaller cities offering better affordability ratios. However, employment opportunities and wage levels in these areas often lag behind major centers, limiting their appeal as alternatives for many buyers.
What do analysts and local banks forecast for Polish real estate prices over the next 12 to 24 months?
Analysts and banking institutions project continued but moderated growth in Polish real estate prices over the next two years.
Most forecasts predict annual price increases of 5-9% in prime cities for the next 12-24 months, representing a significant deceleration from current growth rates. This moderation reflects expectations of stabilizing demand, improved supply from delayed projects, and the ongoing impact of higher financing costs. Warsaw and Kraków are expected to maintain the strongest growth rates within this range.
Banks base their projections on fundamental factors including population inflow, continued urbanization, and unmet housing demand. These underlying drivers support continued price appreciation, though at more sustainable levels. Economic growth projections and employment market strength contribute to positive long-term outlooks.
Potential risks to these forecasts include significant interest rate changes, major economic disruptions, or substantial increases in housing supply. Government policy interventions, particularly through the First Keys program, could accelerate demand beyond current projections. External factors such as regional geopolitical developments or EU economic conditions may also influence market trajectories.
Regional banks emphasize Poland's favorable demographic trends and EU membership as supporting factors for continued real estate value appreciation, though they caution about affordability constraints limiting market expansion.
Is there any sign of a bubble risk, or do fundamentals like demand, demographics, and income still justify the growth?
The question of bubble risk in Polish real estate generates mixed opinions among market analysts, with most concluding that fundamentals still support current pricing levels.
Market fundamentals remain robust across several key metrics. Population inflow to major cities continues through internal migration and international immigration, creating genuine housing demand. Urbanization trends support long-term growth in city center property values. Demographics show growing numbers of household formation age groups, supporting underlying demand for housing units.
However, affordability strains are becoming pronounced, with price-to-income ratios reaching levels that historically preceded market corrections in other countries. Credit risk ratios require monitoring as household debt service capabilities face pressure from higher interest rates and elevated property prices. Some analysts warn that current growth rates are unsustainable if income growth doesn't accelerate.
Rental demand provides fundamental support for property values, indicating that real economic value underlies pricing rather than pure speculation. Foreign investment levels, while high, appear driven by genuine relocation and long-term investment rather than speculative capital flows that characterize bubble markets.
Most analysts conclude that no classic bubble conditions exist, citing solid demand fundamentals, limited speculative activity, and reasonable rental yields. However, they emphasize monitoring affordability metrics and household debt levels to prevent market overheating.
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 real estate market continues demonstrating strong fundamentals despite moderated growth expectations.
Foreign investment remains robust, government programs support first-time buyers, and rental yields stay attractive for investors seeking European exposure.
Sources
- InvestRopa - Average Apartment Price per sqm Krakow
- Poland Insight - Average Apartment Prices in Poland's Largest Cities
- Poland Weekly - Apartments Getting More Expensive
- Careers in Poland - Living and Working in Gdansk
- Polskie Radio - Polish Housing Market Analysis
- Poland Insight - Building Permits and Housing Projects
- Globe Newswire - Poland Construction Industry Report 2025
- Trading Economics - Poland Interest Rate
- Global Property Guide - Poland Rental Yields
- Poland Insight - Foreign Buyers in Poland