Authored by the expert who managed and guided the team behind the Poland Property Pack
Yes, the analysis of Warsaw's property market is included in our pack
Warsaw's property market is experiencing a significant upward trajectory in 2025, with prices rising consistently across all property types.
As we reach mid-2025, Warsaw's residential property market continues to demonstrate remarkable strength, with average prices hitting approximately 16,400-16,500 PLN per square meter for both new and existing apartments. This represents a year-on-year increase of 8-14%, signaling sustained demand despite global economic uncertainties. The Polish capital remains the most expensive residential market in the country, outpacing other major cities like Kraków and Wrocław by a considerable margin.
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 property prices are definitely going up, with an 8-14% year-on-year increase recorded in early 2025.
The average price per square meter has reached 16,400-16,500 PLN, making Warsaw Poland's most expensive residential market.
| Indicator | Current Status | Trend |
|---|---|---|
| Average Price/m² | 16,400-16,500 PLN | ↑ 8-14% YoY |
| Central Districts | Up to 21,000 PLN/m² | ↑ Strong growth |
| Studio Apartments | 18,500 PLN/m² | ↑ Premium pricing |
| Mortgage Rates | 5.25% (NBP rate) | ↓ Recent cut |
| 2026 Forecast | Moderate growth | → Stabilizing |
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.
How much have Warsaw property prices increased in the last year?
Warsaw property prices have surged significantly, with year-on-year growth ranging from 8% to 14% as of June 2025.
According to the latest data from Poland's National Bank (NBP), the average price for existing apartments in Warsaw reached 16,459 PLN per square meter in Q1 2025, representing an 8.07% increase compared to the same period last year. New build properties showed a more moderate growth of 3.07%, averaging 16,383 PLN per square meter.
The price increases have been particularly pronounced in certain property types. Studios are commanding premium prices at 18,500 PLN per square meter, while properties in the city center (Śródmieście) have reached an impressive 21,000 PLN per square meter. This rapid appreciation reflects strong demand from both local buyers and international investors.
When compared to five years ago, the transformation is even more dramatic. Property prices in Warsaw have increased by 50-65% since 2020, representing one of the fastest growth rates in the European Union. In districts like Żoliborz, prices have jumped from 12,735 PLN per square meter in 2020 to over 17,000 PLN per square meter in 2025.
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Which Warsaw districts are seeing the fastest price increases?
Several Warsaw districts are experiencing exceptional price growth, with Ochota leading the pack at a remarkable 27.6% annual increase.
The rapid appreciation in Ochota is driven by its central location and abundance of historical buildings that appeal to both investors and owner-occupiers. Żoliborz has also seen substantial gains, with prices reaching 17,231 PLN per square meter in 2025, up from just 12,735 PLN per square meter in 2020.
Premium districts like Mokotów, Wilanów, and Śródmieście continue to command the highest absolute prices while maintaining strong growth momentum. Śródmieście, Warsaw's historic center, averages 21,000 PLN per square meter in 2025, making it the most expensive district in the city.
An interesting trend is the rapid gentrification of Praga-Północ, where rising rental yields are driving increased investor interest. This traditionally working-class district is transforming rapidly, with new developments and renovations attracting a younger demographic.
Suburban areas around Warsaw are also experiencing moderate price increases due to improved transport links and urban sprawl. The Polish National Railway Programme's 38 billion EUR investment in rail infrastructure is making suburban living more attractive, with a 21.4% increase in housing units sold in Warsaw's suburbs during 2023.
What property types are experiencing the biggest price surge?
Apartments in central and historic districts, particularly renovated or new-build units, are appreciating fastest in Warsaw's property market.
Small apartments are seeing exceptional demand, with studios averaging 18,500 PLN per square meter - significantly higher than larger units. This trend reflects changing demographics and lifestyle preferences, with more single professionals and young couples entering the market.
| Property Type | Average Price/m² | Price Growth Trend |
|---|---|---|
| Studios | 18,500 PLN | Highest per m² prices |
| New Developments | 16,383 PLN | +3.07% YoY |
| Existing Apartments | 16,459 PLN | +8.07% YoY |
| Luxury Units | Up to €6,500 | Strong appreciation |
| Energy-Efficient Properties | Premium pricing | High demand |
New developments with modern amenities and energy efficiency features are commanding premium prices. The implementation of EU Green Deal regulations is driving demand for sustainable properties, with buyers willing to pay more for units that meet "net zero emissions" standards.
Luxury and premium apartments in prime locations such as Śródmieście and Mokotów are experiencing strong appreciation, with prices for high-end units reaching €6,500 per square meter in 2024. These properties attract both wealthy locals and international buyers seeking quality investments.
What are the current mortgage rates affecting Warsaw buyers?
As of May 2025, Poland's National Bank cut interest rates to 5.25%, providing some relief to mortgage borrowers.
This 0.5 percentage point reduction represents the first rate cut since September 2023 and was prompted by favorable inflation forecasts and weaker economic activity in Q1 2025. The move is expected to make mortgages more affordable and support continued demand in the property market.
Current mortgage rates in Poland typically range from 6% to 7.2% for residential properties, depending on the loan terms and borrower profile. Despite the recent cut in the reference rate, mortgage rates remain significantly higher than the historic lows seen before 2022.
The impact of these rates on affordability is substantial. With the average Warsaw apartment price at 16,400 PLN per square meter, a typical 60 square meter apartment costs approximately 984,000 PLN. At current mortgage rates, monthly payments can exceed 5,000 PLN for a standard 30-year loan with a 10% down payment.
Financial experts anticipate that interest rates may remain stable or see modest reductions through the remainder of 2025, potentially supporting market stability and preventing a significant slowdown in price growth.
How does Warsaw compare to other major Polish cities?
Warsaw remains Poland's most expensive residential market by a significant margin, with prices substantially higher than other major cities.
As of Q1 2025, Warsaw's average price of 16,459 PLN per square meter for existing properties surpasses Kraków (15,099 PLN/m²) by approximately 9% and Wrocław (12,675 PLN/m²) by 30%. The gap becomes even more pronounced when compared to cities like Łódź, where prices average just 7,799 PLN per square meter.
Despite being the most expensive, Warsaw's year-on-year price growth of 8.07% for existing properties is actually moderate compared to other cities. Kraków recorded 10.58% growth, while Wrocław saw 9.32% appreciation during the same period.
| City | Avg. Price (PLN/m²) | YoY Change (%) |
|---|---|---|
| Warsaw | 16,459 | +8.07% |
| Kraków | 15,099 | +10.58% |
| Wrocław | 12,675 | +9.32% |
| Poznań | 10,831 | +6.06% |
| Łódź | 7,799 | +4.05% |
Warsaw's premium pricing reflects its status as Poland's capital and economic powerhouse, attracting both domestic and international investment. The concentration of multinational corporations, government institutions, and educational centers continues to fuel demand.
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What economic factors are driving Warsaw's property prices in 2025?
Several key economic indicators are supporting Warsaw's robust property market, with GDP growth projected at 3.4% for 2025-2026.
Poland's economic recovery has been stronger than expected, with the European Commission and IMF forecasting continued growth of 3.3% in 2025 and 3.0% in 2026. This economic expansion is supporting wage growth and increasing purchasing power for potential property buyers.
Urbanization remains a crucial driver, with continued migration to Warsaw from smaller cities and rural areas. The city's population growth is being supplemented by an influx of international students (230,000 in 2023) and expatriate workers, particularly in the tech and business services sectors.
Foreign Direct Investment (FDI) continues to flow into Warsaw, especially in technology and business services. This is creating high-paying jobs and attracting skilled workers who need housing. Warsaw ranked among the top 10 global cities for real estate investment attractiveness in 2024.
Supply constraints are also playing a significant role. Scarcity of land for new developments and regulatory hurdles are limiting new supply, creating upward pressure on prices. Despite 291,280 dwelling permits issued nationwide in 2024 (a 20.58% increase year-on-year), Warsaw continues to face a supply-demand imbalance.
What role is foreign investment playing in Warsaw's market?
Foreign investment in Warsaw's property market is increasing significantly, with the city establishing itself as a prime European investment destination.
In 2024, there was a noticeable uptick in property purchases by foreign nationals, particularly from Ukraine. This surge was driven by favorable exchange rates and Warsaw's relative stability compared to other regional markets. The Polish zloty's fluctuations against major currencies have made Warsaw properties attractive to international buyers.
Warsaw's appeal to foreign investors stems from multiple factors: high rental yields averaging 6.13%, political stability, EU membership benefits, and its status as a regional business hub. The city offers one of the best yield-to-risk ratios in Europe, making it attractive to institutional investors, family offices, and private buyers.
International companies establishing operations in Warsaw are also driving demand. With over 39% of Poland's private rental sector (PRS) stock concentrated in Warsaw, institutional investors are actively developing build-to-rent projects, with 30,000 units scheduled for delivery by 2026.
The trend is expected to continue, with economic forecasts suggesting ongoing advantages for foreign buyers. However, it's worth noting that foreign buyers from outside the EEA still require permits for certain property types, though condominium purchases remain unrestricted.
How is the EU Green Deal affecting Warsaw property demand?
The EU Green Deal implementation is fundamentally reshaping Warsaw's property market, driving strong demand for energy-efficient and sustainable properties.
New developments must now meet stricter building codes and "net zero emissions" standards, which is influencing both buyer preferences and developer strategies. Properties with high energy efficiency ratings are commanding premium prices, as buyers recognize the long-term savings on utility costs and the future-proofing of their investments.
Older buildings that don't meet modern energy standards are seeing relatively slower price growth, creating a two-tier market. This is particularly evident in Warsaw's historic districts, where renovation costs to meet new standards can be substantial.
The Polish government and EU are offering various incentives for green construction and renovation, including subsidies and preferential financing. These programs are encouraging developers to focus on sustainable projects, which are proving highly popular with environmentally conscious buyers.
Looking ahead, the Green Deal's impact is expected to intensify. Properties that fail to meet energy efficiency standards may face restrictions or penalties by 2030, making current green-certified properties increasingly valuable investments.
What are the rental market trends impacting property prices?
Warsaw's rental market has experienced dramatic growth, with average rents for one-bedroom apartments rising from 2,300-2,800 PLN in 2021 to approximately 3,500 PLN by mid-2025.
This surge in rental prices - representing an increase of over 25% in just four years - is creating attractive yields for property investors. Studios in particular have seen a 33% year-on-year increase, driven by strong demand from students and young professionals.
| Year | Average Rent (1-bed) | Change |
|---|---|---|
| 2021 | 2,300-2,800 PLN | Baseline |
| 2024 | 2,955 PLN | +18% |
| 2025 (projected) | 3,500 PLN | +25% from 2021 |
| Gross Rental Yield | 6.13% | Above EU average |
| Studio Rent Increase | 33% YoY | Highest growth |
The rental boom is being fueled by several factors: reduced creditworthiness limiting home purchases, continued population growth, and the influx of international students and workers. With mortgage payments now approaching rental costs, many potential buyers are remaining in the rental market longer.
The private rental sector (PRS) is expanding rapidly, with institutional investors developing purpose-built rental properties. Over 21,000 PRS apartments already exist in Poland's largest cities, with 39% concentrated in Warsaw, and another 25,000 units planned for delivery in coming years.
These strong rental yields are supporting property prices by attracting buy-to-let investors. With gross yields averaging 6.13% - significantly higher than many Western European cities - Warsaw properties offer attractive investment returns.
What are experts forecasting for Warsaw property prices in 2026?
Expert forecasts for 2026 suggest continued but more moderate price growth in Warsaw, with the market moving toward greater equilibrium.
Major real estate analysts predict that Warsaw's property market will stabilize, with annual price growth aligning with or slightly below inflation levels. This represents a significant moderation from the 8-14% growth seen in 2025, suggesting a healthier, more sustainable market.
The European Commission's projection of 3.0% GDP growth for Poland in 2026 will continue to support the property market, though at a more measured pace. Combined with anticipated interest rate stability around 5-6%, conditions should remain favorable for both buyers and sellers.
Several factors support the moderate growth forecast: continued urbanization and population growth in Warsaw, persistent land scarcity limiting new supply, ongoing foreign investment interest, and strong fundamentals in the rental market. However, affordability constraints may limit rapid price increases.
By 2030 and beyond, Warsaw is expected to remain Poland's most expensive and dynamic residential market. The city's 2030 development strategy emphasizes balanced growth, improved accessibility, and sustainable development, which should support long-term property values while preventing unsustainable price bubbles.
What risks could affect Warsaw property prices going forward?
While the outlook remains positive, several risk factors could impact Warsaw's property market trajectory in the coming years.
Affordability pressures represent the most immediate concern. With average prices at 16,400 PLN per square meter and wages not keeping pace with property price growth, many locals are being priced out of the market. This could lead to reduced demand and price stabilization or even modest declines in some segments.
Rising construction costs pose another challenge. If interest rates increase again or construction materials become more expensive, developers may struggle to deliver affordable new supply, potentially exacerbating the supply-demand imbalance.
Potential oversupply in certain suburban areas could create localized price pressures. With significant new development in Warsaw's periphery, some areas may experience slower growth or price corrections if demand doesn't materialize as expected.
Economic shocks or geopolitical instability could also impact the market. Changes in migration patterns, reduced foreign investment, or broader economic downturns would likely affect property demand and prices.
Despite these risks, Warsaw's strong economic fundamentals, continued urbanization trends, and limited central city supply suggest the market will remain resilient, though growth rates may moderate from recent highs.
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Which property features are most in demand in Warsaw?
Modern amenities, energy efficiency, and smart home features are commanding premium prices in Warsaw's competitive property market.
Properties with dedicated home office spaces have become increasingly sought-after, reflecting the permanent shift to hybrid work arrangements. Apartments with balconies, terraces, or access to green spaces are also commanding higher prices, as buyers prioritize quality of life features.
Location remains crucial, with properties near metro stations, tram lines, and the newly modernized cross-city railway line achieving faster sales and higher prices. The Polish National Railway Programme's 38 billion EUR investment is making transport-accessible properties increasingly valuable.
In the luxury segment, features like underground parking, concierge services, and gym facilities are standard expectations. Smart home technology, including automated climate control and security systems, appeals particularly to younger buyers and international purchasers.
The trend toward smaller, more efficient living spaces continues, with well-designed studios and one-bedroom apartments achieving the highest price per square meter. Developers who maximize space efficiency while maintaining comfort are seeing the strongest demand.
We made this infographic to show you how property prices in Poland compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
How are demographic changes affecting Warsaw's property market?
Warsaw's demographic shifts are creating diverse demand patterns across different property segments.
The city's student population of 230,000 is driving demand for studios and shared accommodations, particularly in districts near universities. This has contributed to the 33% year-on-year increase in studio rental prices and supports investor interest in smaller units.
Young professionals, both Polish and international, are fueling demand for modern one and two-bedroom apartments in central locations. This demographic values proximity to business districts, nightlife, and cultural amenities, supporting premium prices in areas like Śródmieście and Mokotów.
The growing expatriate community, attracted by Warsaw's thriving tech and business services sectors, typically seeks higher-end properties with international standards. This segment is less price-sensitive and contributes to the strong performance of the luxury market.
An aging population is creating demand for accessible, well-serviced properties in established neighborhoods. Senior housing is attracting increasing investor interest, with developers recognizing this growing market segment.
Family formation patterns are also evolving, with couples having children later and seeking properties that can adapt to changing needs. This supports demand for flexible living spaces and properties in areas with good schools and family amenities.
What impact are new development regulations having on prices?
Upcoming urban planning reforms and building regulations are creating both opportunities and constraints in Warsaw's property market.
The urban planning reform set to take effect in January 2026 is already influencing market dynamics. Developers are rushing to secure permits before the new regulations, which may make many undeveloped plots ineligible for construction. This has led to a 20.58% increase in building permits issued in 2024.
New technical standards introduced in Q2 2024 have increased construction costs but also improved building quality. These standards, combined with EU Green Deal requirements, mean new developments must meet higher environmental and safety standards, justifying premium pricing.
Plots with valid building permits are becoming increasingly valuable, with many owners choosing to hold rather than develop immediately. This strategic behavior is contributing to supply constraints and supporting higher land prices.
The regulatory environment is creating a more professional, consolidated development market. Smaller developers struggle with compliance costs, leading to market concentration among larger, well-capitalized firms capable of delivering high-quality, compliant projects.
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How is technology reshaping Warsaw's real estate market?
Digital transformation is revolutionizing how properties are bought, sold, and managed in Warsaw.
Virtual property tours and digital transactions became mainstream during the pandemic and remain popular, especially among international buyers. This technology enables foreign investors to purchase Warsaw properties without physical visits, expanding the potential buyer pool.
PropTech startups in Warsaw are introducing innovative solutions for property management, tenant screening, and investment analysis. These tools are making it easier for individual investors to enter the buy-to-let market, increasing competition for investment properties.
Blockchain technology is beginning to appear in property transactions, promising faster, more secure deals with reduced paperwork. While still in early stages, several pilot projects in Warsaw are testing digital property registration and smart contracts.
Data analytics platforms are providing unprecedented market insights, allowing investors to identify undervalued areas and predict future growth zones. This is contributing to more efficient price discovery and reducing information asymmetries in the market.
Smart building technology is becoming a key differentiator for new developments. Properties with integrated IoT systems, energy management platforms, and predictive maintenance capabilities command premium prices and attract tech-savvy buyers.
Conclusion
Yes, property prices in Warsaw are definitely going up, with strong momentum expected to continue through 2025 and moderate growth anticipated for 2026 and beyond.
The Warsaw property market has demonstrated remarkable resilience and growth, with prices increasing 8-14% year-on-year and reaching 16,400-16,500 PLN per square meter in 2025. This upward trajectory is supported by solid economic fundamentals, including projected GDP growth of 3.4%, continued urbanization, strong foreign investment interest, and a robust rental market yielding 6.13% returns. While certain risks exist - particularly affordability constraints and potential interest rate changes - Warsaw's position as Poland's economic powerhouse and its chronic supply shortage suggest prices will continue their upward trend, albeit at a more sustainable pace moving forward.
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.
The combination of strong economic growth, limited supply, and increasing demand from both local and international buyers creates a compelling case for continued price appreciation in Warsaw's property market.
While the rapid growth rates of recent years may moderate, the fundamental drivers of Warsaw's property market remain intact, suggesting that property ownership in the Polish capital will continue to be a sound investment for the foreseeable future.
Sources
- Global Property Guide - Poland's Residential Property Market Analysis 2025
- Investropa - 17 Strong Trends for 2025 in the Warsaw Property Market
- Global Property Guide - Poland Property Investment Guide
- Cushman & Wakefield - Trends Radar 2025 Poland Real Estate
- Poland Accounting - National Bank of Poland Interest Rates May 2025
- Investropa - 17 Statistics for the Poland Real Estate Market in 2025
- Statista - Mortgage Interest Rate Poland 2023
- Trading Economics - Poland Housing Index
- EY - The Polish Real Estate Guide 2025
- City of Warsaw - Warsaw 2030 Strategy