Real estate in Poland for 9 months of 2023

Apartments for sale

Demand for purchasing apartments in Poland increased sharply in the third quarter of 2023. Apartment prices among new proposals increased by 9-10% (year/year). In the second quarter, growth was approximately 6% (y/y). On average, home prices rise at a rate similar to inflation. Prices increased the most in Krakow (14-19% year/year), reaching a level of 14-14.5 thousand zlotys per 1 m2.

Demand for purchasing apartments in Poland increased sharply in the third quarter of 2023. Apartment prices among new proposals increased by 9-10% (year/year). In the second quarter, growth was approximately 6% (y/y). On average, home prices rise at a rate similar to inflation. Prices increased the most in Krakow (14-19% year/year), reaching a level of 14-14.5 thousand zlotys per 1 m2.

In Warsaw, the price increase was 14% (year/year), and the price of 1 m2 on the primary market fluctuated around 15,000 zlotys, and on the secondary market - 16 thousand zlotys.

The trends observed in the third quarter are expected to continue in the fourth quarter. The number of offers for the sale of new apartments will decrease due to the low activity of developers in the construction market and the long period of investment implementation. The latest data for October suggests that demand for apartment purchases continues to grow. This means that house price growth will remain at least close to 9-10% (year/year).

The number of offers for the sale of new apartments is decreasing. The average weekly number of new listings decreased by 5% (y/y). The share of the primary market in the structure of offers increased slightly. This is mainly the result of a reduction in the number of offers on the secondary market. Developer activity remains weak.

The decrease in the average number of new offers for apartment sales in the price range from 400,000 to 600,000 zlotys (sq./sq.) amounted to 11.5%.

The number of home loan applications submitted has increased by 195 percent compared to last year. The share of loans under the “Safe Loan 2%” program in the pool of housing loans issued in the third quarter of 2023 amounted to 41%.

Apartments for rent

The average increase in the cost of renting an apartment compared to last year was 3.5%.

The rental yield rate has been decreasing since the beginning of 2023. The average annual rental yield of an apartment in large cities in Poland ranges from 5.3 to 7%. The average profitability of renting apartments in the six largest cities in Poland is approximately 6%, i.e. 0.5 percentage points less than in the first quarter of this year. The highest level of profitability was recorded in Lodz (7%), which is due to the fact that there is a large proportion of the smallest apartments with high profitability.

The number of offers for rental of new apartments increased compared to last year by an average of 6.5% in 16 voivodeship cities and Gdynia. The largest rental market is Warsaw. However, the number of new rental offers is growing the most in Wroclaw and Lodz – more than 20% compared to last year.

Accommodation in Warsaw

The weekly number of offers for sale of new apartments in Warsaw has decreased by an average of 14% compared to last year.

The average price of 1 m² of an apartment in Warsaw on the primary market was 15,000 zlotys, and on the secondary market - 16 thousand zlotys.

The average price of 1 m2 of apartment on the secondary market in Warsaw increased (year-on-year) by 14%.

The average price for renting an apartment in Warsaw was 4.2 thousand zlotys.

Materials used from the site pie.net.pl