For years, apartments in Poland have been systematically getting more expensive, but this year, market experts say that price increases have slowed down, or “stabilized,” meaning prices will continue to rise but at a slower pace, according to Poland’s Business Insider.
Bank Pekao economists estimate that average prices in Poland’s seven largest cities will rise by about 2.5 percent until Q2 2025 and then drop slightly.
“According to our model forecast, taking into account mainly macroeconomic factors, transaction prices of real estate sold on the primary market will reach an average level of PLN 14,500 (€3,342) per square meter in the first quarter of 2025 (compared to the current level of PLN 14,100). In the following quarters, the growth rate will gradually decrease, and taking into account the effect of a very high base, even pushing it below zero at the end of 2025,” write Pekao experts.
Price declines, they say, will be supported by the effects of high real interest rates, which will appear with a considerable delay, the high supply of apartments, the expiration of the impact of the government’s “Safe Credit for 2%” program, and the decreasing probability of introducing a new subsidy program for housing loans.
The prices of building materials are also falling, reducing developers’ costs.
They note, however, that any deeper price decline will be prevented by high demand driven by the improving economic situation and the continuing rapid growth in wages.
