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
What is happening in Warsaw’s real estate market? Are prices on the rise or decline? Is the city still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Warsaw and beyond. Maybe you’re curious about these trends too.
We know this because we stay closely connected with local experts and people like you, exploring the Warsaw real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
1) Suburban property prices will rise moderately with better transport links and urban sprawl
Suburban areas around Warsaw are seeing a moderate rise in property prices due to improved transport links and urban sprawl.
Thanks to the Polish National Railway Programme, EUR 38 billion is being invested in rail infrastructure, making suburban living more convenient. This includes modernizing the cross-city line in Warsaw, which aims to boost transport capacity and comfort.
With more suburban trains during peak hours, commuter traffic is on the rise, drawing more people to consider moving to the suburbs. In 2023, there was a 21.4% increase in housing units sold in Warsaw's suburbs, totaling 19,100 units.
Urban sprawl is also pushing up demand for suburban homes. As city dwellers move out, suburban property prices are climbing. Demographic studies highlight that much of Warsaw's population growth is happening in suburban and exurban areas.
Inner suburban powiats are capturing most of this growth, supported by the expansion of amenities and services. Suburban regions are becoming more appealing to potential residents, further driving demand.
With these developments, suburban areas are becoming increasingly attractive, leading to a steady increase in property prices. Improved transport links and urban sprawl are key drivers of this trend.
Sources: Global Property Guide, Railway Pro, New Geography
2) Rental yields will stay stable as demand for rental properties continues
In 2023 and 2024, Warsaw saw a steady rise in rental prices, with the average rent for a one-bedroom apartment increasing from 2,300-2,800 PLN in 2021 to 2,955 PLN in 2024. This trend is expected to continue, with projections indicating an average rent of around 3,500 PLN per month by 2025. This increase is largely driven by high demand and limited supply.
Warsaw's population growth, fueled by an influx of students and new businesses, has significantly contributed to the high demand for rental housing. In 2023, Warsaw ranked third in Europe with 230,000 students, and the city's growing economy continues to attract more people, further boosting the need for rental properties.
The limited availability of affordable housing exacerbates the supply-demand imbalance. In July 2023, asking rents in Warsaw and Kraków jumped by nearly 12% year-over-year, highlighting the dwindling supply of rental properties, especially in the student housing sector. Construction delays and fewer new housing projects, along with stricter mortgage lending policies, are nudging young professionals and expatriates towards renting.
Sources: Statista, University of Warsaw, Careers in Poland
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.
3) Warsaw’s property prices will stabilize as the market adapts to recent rapid growth
Warsaw's property prices have surged recently, but signs point to stabilization soon.
One big factor is the increasing supply of new housing. Skanska's Holm Houses project is a prime example, adding more flats to the market and helping balance supply and demand. This influx of new homes is crucial for those looking to buy in the city.
The office market in Warsaw is also booming, with new office spaces popping up all over. This construction boom is expected to stabilize the market by offering more choices for buyers and renters. Plus, government policies like tax breaks for developers are encouraging even more building, which means more homes for everyone.
Interest rates are another key player in this scenario. With forecasts hinting at a potential decrease in interest rates due to lower inflation, mortgages could become more affordable. This shift would lead to a more balanced market, making it easier for people to buy homes.
Looking back, historical trends show that after rapid growth, markets often find their footing. Poland's housing market from 2017 to 2023 is a perfect example of this pattern, suggesting that Warsaw's market will follow suit.
Sources: CEO, Cushman & Wakefield, Global Property Guide, Skanska
4) Green spaces and parks will be crucial for property desirability
Properties near green spaces and parks are becoming increasingly desirable.
Living close to urban green areas can significantly boost property values. For example, having a park within 100 meters of an apartment can increase its price by 2.8% to 3.1%. If the apartment is newer, this increase can jump to 8.0-8.6%. In Warsaw, real estate listings often highlight proximity to parks, showing a clear buyer preference for these locations.
Green spaces aren't just about aesthetics; they enhance quality of life. They provide recreational areas, improve air quality, and boost mental health, making them a magnet for potential buyers. In Warsaw, being near a park is a key selling point, reflecting a strong demand for such properties.
The trend towards eco-friendly living is also on the rise. Poland's focus on sustainability has led to a growing interest in eco-certified buildings, which are expected to appreciate in value. Initiatives like the Green Fund for Warsaw are supporting the development of these spaces, making them even more appealing.
Health benefits linked to green spaces are a big draw for buyers. Studies show that these areas improve both mental and physical health. The media has highlighted these perks, further boosting the appeal of properties near parks. Government policies and community activities continue to promote these spaces, enhancing their attractiveness.
Sources: Gale, Interlace Hub, WBJ, Vilnius Tech Journals
5) Praga district will attract more interest with its cultural revival and better infrastructure
The Praga district in Warsaw is experiencing a cultural revival and improved infrastructure, which is drawing increased interest. One of the key factors is the PragaLAB initiative, which focuses on connecting Praga’s rich heritage with modern municipal processes. This initiative aims to boost the local economy and promote sustainable development, making the area more attractive to both residents and businesses.
Another significant development is the announcement of a third metro line that will connect Praga-Południe with the city center. This new line will provide a quick 17-minute commute for the 180,000 residents of Praga-Południe, greatly enhancing transportation options and accessibility. Improved public transport links are often a major draw for people looking to move to or invest in an area.
Additionally, Praga is becoming a cultural hotspot with numerous festivals and community events, such as the Warsaw Film Festival and the Unsound Festival. These events not only highlight the district's cultural significance but also attract visitors and potential new residents. The media coverage of these cultural activities further boosts Praga's profile as a vibrant and appealing place to live.
Sources: OpenHeritage, Notes from Poland, EIB
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6) Mokotów will see rising demand as tech companies set up offices nearby
In 2023 and 2024, Mokotów saw a significant increase in office space leasing by tech companies, with nearly 233,200 square meters leased, particularly in the Służewiec subzone. This indicates a strong demand for office space in the area, driven by the tech sector.
The IT sector has been a major driver of employment in Warsaw, with IT companies accounting for 41% of total city-wide transactions in 2022. This growing presence of tech companies in the city suggests that Mokotów is becoming an attractive location for these businesses.
Recent examples of tech companies establishing offices in Mokotów include Netflix and other firms like Digital Services Poland and iTechArt. These developments highlight a trend of tech companies setting up operations in the area, further boosting its appeal.
Sources: Savills Report, Property Forum
7) Asian investors will play a bigger role in Warsaw’s real estate market
In recent years, we've seen a noticeable shift in the Warsaw real estate market, with investors from Asia becoming more prominent. This trend can be attributed to several key factors that have unfolded over the past couple of years.
Firstly, the strategic location of Poland, particularly its role in the Belt and Road Initiative, has made it an attractive destination for Asian investors. With about 90% of trains on the China Europe Railway Express passing through or ending in Poland, the country has become a crucial hub in global trade routes. This strategic importance naturally extends to its real estate market, drawing interest from Asian investors looking for opportunities in Europe.
Additionally, the Polish government's favorable policies, including grants and tax reliefs, have created a welcoming environment for foreign investment. These incentives make Warsaw an appealing choice for Asian investors seeking economically viable opportunities backed by government support. Furthermore, the presence of global investment firms like Point72 in Warsaw indicates a growing interest in the city's real estate potential.
Moreover, real estate market reports have predicted growth in foreign investment, particularly from Asia. This prediction aligns with the overall trend of Asian investors being cautious yet active in European markets. The increasing interest in Warsaw from various investor groups, including Asian investors, is likely to be highlighted in real estate market reports and news articles, further solidifying Warsaw's position as a new hotspot for Asian investors.
Sources: Savills, Point72, Varso Invest
8) Foreign buyers will increasingly target Warsaw properties due to favorable exchange rates
Foreign buyers are increasingly eyeing Warsaw for property investments.
In 2024, there was a noticeable uptick in property purchases by foreign nationals, especially from Ukraine. This surge was largely due to favorable exchange rates, making Warsaw an attractive investment spot. The Polish zloty has seen its ups and downs against major currencies, which has been a key factor in drawing in these investors.
During the second quarter of 2024, the average price of existing flats in Warsaw jumped by over 14%. This increase was partly fueled by the advantageous currency exchange rates, making the city a hot destination for real estate enthusiasts. Real estate agencies have been buzzing with inquiries from foreign buyers, all thanks to these economic conditions.
Experts predict that these currency benefits will continue, keeping Warsaw on the radar for international investors. The city's real estate market is expected to remain appealing, with economic forecasts suggesting ongoing advantages for foreign buyers. This trend is likely to persist, as Warsaw continues to offer a promising investment landscape.
For those considering a property purchase in Warsaw, now might be the time to act. The combination of favorable exchange rates and economic conditions makes it an opportune moment to invest. With the Polish zloty fluctuating, foreign investors are finding more value for their money, further boosting interest in the city's real estate market.
As Warsaw's appeal grows, it's not just the exchange rates that are drawing attention. The city's vibrant culture, rich history, and modern amenities make it a desirable place to live and invest. With ongoing interest from international buyers, Warsaw's real estate market is poised for continued growth.
Sources: Varso Invest, KAPITALARK, Global Property Guide
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Poland. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Families will increasingly favor Żoliborz for its green spaces and quieter lifestyle
Żoliborz is quickly becoming a favorite for families seeking green spaces and a quieter lifestyle.
One big draw is the district's push to expand its green areas. For instance, the revitalization of Wilson Square includes plans to plant more trees and create extensive lawns, making it a perfect spot for families who love outdoor activities. This commitment to greenery is part of Żoliborz's charm, offering a breath of fresh air away from the hustle and bustle of city life.
Property prices in Żoliborz are on the rise, reflecting a growing demand for homes in the area. Back in 2020, the price per square meter was significantly higher than the city average, showing that more families are choosing Żoliborz as their preferred place to live. This trend is likely driven by the district's reputation for being quieter and safer compared to more central areas.
Żoliborz also boasts a range of family-friendly amenities and schools, making it an attractive location for those with children. Projects like Apartamenty Literacka highlight the presence of schools, kindergartens, and green areas, which are essential for families seeking a balanced lifestyle. The district's focus on urban planning initiatives, such as the "Million Trees" program, further enhances its appeal by promoting green and sustainable living.
Families are drawn to Żoliborz not just for its green spaces but also for its community vibe. The area is known for its local markets, cozy cafes, and cultural events, offering a sense of belonging and community that is hard to find in more urbanized parts of the city. This neighborhood feel is a big plus for families looking to settle down.
With its combination of green spaces, rising property values, and family-friendly amenities, Żoliborz is set to become even more popular among families. The district's ongoing commitment to enhancing its environment and community makes it a top choice for those seeking a quieter, more sustainable lifestyle.
Sources: Architektura i Biznes, Okeask, Dom Development, MDPI
10) Wola will draw young professionals for its closeness to business hubs and lively nightlife
Wola's property prices are on the rise, making it a hot spot in Warsaw.
Young professionals are flocking to Wola because it's close to major business centers like Warsaw Spire and Rondo Daszyńskiego. This means less time commuting and more time enjoying life.
Wola isn't just about work; it's also about play. The area has seen a boom in bars, restaurants, and entertainment venues, offering a vibrant nightlife that appeals to those who love a lively social scene.
Living in Wola means having the best of both worlds: proximity to work and a bustling social life. It's a place where you can easily balance your professional and personal life.
As more young professionals move in, Wola continues to evolve, with new spots popping up regularly. This growth is a testament to its ongoing appeal and dynamic atmosphere.
With its central location and vibrant lifestyle, Wola is set to remain a top choice for those seeking a balanced urban experience.
Sources: Office Finder, Rzeczpospolita Report
11) Luxury buyers will be drawn to Wilanów with the completion of new high-end developments
Wilanów is now a prime spot for luxury property buyers thanks to new high-end developments.
Take the ENSO Wilanów project, for instance, where nearly half of its premium apartments are already sold. This shows just how much people want to live in luxury here. The area is becoming more desirable, and that's pushing property prices up.
Another big draw is the surge in luxury real estate projects. Developments like Rezydencje Pałacowa, with 48 luxury houses near Natoliński Park, offer a mix of modern design and cozy living. These projects aren't just adding more high-end homes; they're making Wilanów even more appealing to wealthy buyers.
Wilanów's improved infrastructure is also a game-changer. The new Wilanów tram extension has boosted connectivity to the district, making it more convenient for those who value both exclusivity and ease of access. This better access, along with the area's ongoing gentrification, makes it even more attractive.
Being close to the city center is another plus. Wilanów's location means you get the best of both worlds: proximity to urban life and a peaceful, upscale environment. This balance is a big reason why luxury buyers are flocking here.
Sources: Yareal, Real Management, Railway Pro
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12) International workers will diversify housing needs and preferences
The influx of international workers into Warsaw has significantly diversified housing needs and preferences. In recent years, tech giants like Google, Facebook, and Microsoft have established offices in the city, attracting a large expatriate population. This has led to a demand for a variety of housing options to accommodate different lifestyles and preferences.
The number of foreigners registered in Poland's social insurance system rose by 6% in 2023, reaching 1.13 million. This includes significant increases in groups such as Belarusians, Ukrainians, and Indians. As these international communities grow, so does the need for housing that reflects their diverse cultural backgrounds and living requirements.
Real estate market reports from 2023 and 2024 have shown a growing demand for varied housing types, including apartments, townhouses, and co-living spaces. These reports highlight the preferences of international workers for modern amenities, proximity to city centers, and access to public transportation, which are driving the development of specific housing types.
Sources: Notes from Poland, Tech Behemoths, JLL
13) Central area property prices may dip slightly as supply meets demand
In Warsaw, construction permits and new housing projects have surged in 2023 and 2024.
This boom in building means more homes are popping up, especially in central areas, which could lead to an oversupply. As a result, property prices might stabilize or slightly dip as the market balances out.
In October 2024, there were 138 homes listed for sale in Warsaw, showing a clear increase in available properties. This growing inventory is a sign that the market is adjusting, with supply starting to catch up with demand.
Government policies are also playing a role, with tax breaks and incentives for new developments encouraging builders to keep adding to the housing stock. This push for urban development is making central areas more competitive.
For potential buyers, this means more options and possibly better deals as the market becomes more saturated. It's a good time to explore opportunities, especially if you're looking for a property in a bustling city like Warsaw.
Keep an eye on these trends, as they can offer insights into when and where to invest. The dynamics of supply and demand are shifting, and being informed can help you make the best decision.
Sources: Global Property Guide, Rocket Homes
14) Central Warsaw rental yields will dip slightly as property availability increases
Warsaw is buzzing with new construction, adding many residential buildings to the market.
Thanks to the European Investment Bank's loan, urban development is on the rise, bringing more homes to the city. This means the supply of rental properties in central Warsaw is growing steadily.
The Polish government is also playing a part by offering tax breaks to developers, encouraging even more property development. With more rental units popping up, landlords are feeling the heat to attract tenants, which might lead to a dip in rental prices.
In the third quarter of 2024, Poland's average gross rental yield was 6.03%, showing stability. However, with more properties available, landlords might have to tweak prices to avoid empty units, slightly lowering yields.
This isn't just a Warsaw thing. Other cities like Kraków are seeing similar trends, where more vacancies mean landlords are cutting prices to fill their spaces.
So, if you're thinking about buying property in Warsaw, keep an eye on these changes. More properties mean more choices, but also a shift in rental dynamics.
Sources: EIB, Global Property Guide
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.
15) Luxury property prices will rise as wealthy individuals seek exclusive homes
Luxury property prices in Warsaw are expected to continue rising due to several key factors. First, there's a growing demand for luxury properties in the city, driven by its increasing status as a luxury destination. This is supported by media coverage and consumer surveys that highlight preferences for high-end amenities and prime locations.
Additionally, the number of high-net-worth individuals in Poland has been on the rise. Even though there was a slight decline in individuals with net assets over $1 million, the overall wealth among Polish citizens has been increasing, thanks to high inflation and significant wage growth. This growing wealth fuels the demand for exclusive residences.
Moreover, foreign investment in Warsaw's real estate market remains strong, with Ukrainian and Belarusian buyers leading the charge. The limited supply of exclusive residences in prime locations further contributes to the rising prices, as demand outpaces availability. Historical data also shows consistent price increases in the luxury segments, reinforcing this trend.
Sources: Global Property Guide, Poland Weekly, Varso Invest
16) Demand for rental properties near universities will rise due to international students
International students are flocking to Polish universities, with over 105,000 enrolling recently.
In Warsaw, this influx has led to a noticeable surge in demand for student accommodation. The city is now experiencing the highest rental prices for student apartments in 2024, a clear sign of the strong housing demand driven by these students.
Many international students are opting for off-campus housing, which is often more affordable and closer to city centers. This preference aligns perfectly with Warsaw's urban living trends, making it a popular choice for students.
Universities in Warsaw are expanding their programs and launching initiatives to attract even more international students. This effort is further fueling the growing demand for rental properties in the city.
With the city's vibrant culture and bustling urban life, it's no wonder that international students are drawn to Warsaw. This trend is reshaping the rental market, making it a hotspot for property investors.
As more students choose Warsaw for their studies, the demand for rental properties near universities is expected to continue rising, offering a promising opportunity for those looking to invest in the property market.
Sources: Notes from Poland, GSL Global, Statista
17) Investors will increasingly target Białołęka for its long-term growth potential
In recent years, Białołęka has become a hotspot for investors seeking long-term growth potential. One of the main reasons is the affordability and demand shift. As property prices in central Warsaw have risen, investors are looking for more affordable areas with similar growth potential, and Białołęka fits the bill perfectly.
Another key factor is the increasing infrastructure development in the area. With new roads and public transport links, Białołęka's connectivity has improved significantly, making it more appealing to both investors and residents. This is complemented by urban development initiatives promoted by the Warsaw City Hall, which are expected to boost the area's attractiveness further.
Demographic trends also play a crucial role. Białołęka is experiencing population growth due to its proximity to Warsaw and the availability of affordable housing options. This trend provides a strong foundation for long-term investment. Additionally, the availability of larger plots of land compared to more central districts is crucial for investors looking to build large-scale projects.
Sources: Antal, Eurobuild CEE, Rynek Pierwotny
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.