Current costs of housing in Poland: an overview
Poland’s housing market has seen dynamic growth in recent years, with house prices rising sharply, particularly in major cities. As the demand for homes remains high, both locals and foreign investors are closely monitoring market trends. This rise in demand has led to increased average prices for single-family houses, making homeownership more challenging for many Poles.
On a European scale, Poland’s housing costs remain moderate compared to cities such as Tel Aviv and Paris, where prices can reach over 5,400 EUR/m² and 10,000 EUR/m², respectively. However, among Central and Eastern European countries, Poland is positioned as one of the more expensive markets, outpacing its neighbors like Romania and Hungary. The following sections will provide a detailed look at these trends, comparing Polish cities and highlighting factors shaping the local market’s dynamics.
Housing prices in Poland and Europe: how much is a house in Poland?
In 2024, Poland’s housing market continues its upward trend, driven by high demand for single-family homes across the country. Warsaw remains the most expensive market, with an average price surpassing 10,500 PLN per square meter—a 15.8% increase over the previous year. This surge reflects strong buyer interest despite high prices. Other major cities, such as Kraków, Wrocław, and Gdańsk, closely follow, with prices around 10,000 PLN per square meter. Łódź stands out with an impressive 24.7% annual growth rate, making it one of the fastest-growing markets in Poland.
How much is a house in Poland compared to Europe?
Compared to Western Europe, house prices in Poland are more accessible, yet relatively high within Central and Eastern Europe. In top Western European markets like Paris and Munich, prices frequently exceed 10,000 EUR per square meter, while Tel Aviv leads with rates around 5,400 EUR per square meter. Poland ranks among the pricier markets in Central Europe, surpassing countries like Hungary and Romania. This positioning underscores Poland’s appeal as a robust market for both local and international buyers, drawn by its growing economy and market stability.
Regional variations in house prices across Polish cities
House prices vary across Poland’s major cities, shaped by regional demand and economic conditions. In Warsaw, Kraków, Wrocław, and Gdańsk, steady growth reflects their appeal as top urban markets, fueled by strong local economies and investment interest. Łódź, with an average price of 7,200 PLN per square meter, showcases a substantial growth rate, indicating heightened buyer interest in regional markets. Meanwhile, Poznań and Lublin offer relatively lower prices, but these cities are also experiencing upward momentum, further illustrating the dynamic nature of Poland’s housing landscape.
These city-specific trends highlight how demand, economic factors, and local conditions influence housing prices throughout Poland.
House prices vs apartment prices in Poland
The price dynamics between houses and apartments in Poland have become increasingly pronounced. In 2024, single-family houses have experienced sharper price increases compared to apartments, especially in major cities. For instance, the price per square meter for a house in Warsaw and Kraków has reached over 10,000 PLN, while prices for apartments of comparable size — particularly those over 80 square meters — have grown more modestly, typically increasing between 0.5% and 1.9% quarterly in cities like Wrocław and Poznań.
Demand for smaller houses, around 80 to 100 square meters, has surged as buyers seek affordable alternatives in a high-priced market. This trend reflects a growing preference for standalone properties, even as apartment living remains more affordable in city centers.
The gap between house and apartment prices is most evident in regions where houses outprice large apartments by 13-20%, such as Wrocław, Poznań, and Lublin. Yet, in premium markets like Warsaw and Kraków, the difference narrows, with apartments sometimes rivaling house prices per square meter. This contrast highlights the diversity in Poland’s real estate market, shaped by location, property type, and evolving buyer preferences.
Average earnings in Poland and housing affordability in 2024
According to recent data from the Polish Central Statistical Office (GUS), the average gross monthly salary in Poland has seen an increase, reaching approximately 7,000 PLN. While this rise in earnings is encouraging, it stands in stark contrast to the significant escalation in housing prices across the country.
Comparing income to housing costs, it’s evident that the gap between earnings and home prices is widening. The yearly salary for an average worker is not sufficient to cover the cost of a small apartment or house in central urban areas, where demand continues to drive prices upward. This disparity highlights affordability issues in Poland’s housing market, where property prices outpace income growth, particularly in cities like Warsaw, Kraków, and Wrocław. As a result, many potential homeowners are either pushed towards the rental market or face long-term saving challenges.
Factors influencing housing prices in Poland
The current housing prices in Poland are shaped by several significant factors, creating a complex market landscape in 2024. Here are the primary elements driving costs:
High interest rates
Interest rates in Poland have reached approximately 8% — one of the highest in Europe. This has a twofold impact on the housing market:
- It raises the cost of mortgage financing, making it challenging for many Poles to qualify for loans or afford monthly repayments.
- Higher borrowing costs discourage some potential buyers, leading them to postpone purchasing decisions or turn to the rental market as an alternative.
Increased construction costs
Over recent years, construction costs have escalated due to inflation in material and labor prices. Key trends include:
- The average cost of building a single-family home has risen by more than 70% in the past five years, affecting the price of newly built houses.
- Developers are adjusting by focusing on smaller properties or scaling back on projects, which further limits the housing supply, especially in urban areas.
Inflation and rising material costs
The broader inflationary environment affects housing prices through increased material costs, as well as through higher prices for construction services. Specific impacts include:
- Persistent inflation in Poland has meant that even as the economy stabilizes, construction materials remain expensive, adding to the final sale prices of homes.
- Rising costs for essential materials like cement, steel, and insulation directly influence new construction expenses, making it difficult for developers to maintain lower price points.
Demand for smaller, more affordable homes
With housing prices rising across Poland, many buyers are adjusting their preferences:
- There is a noticeable increase in demand for smaller homes, particularly those between 80 and 100 square meters, as buyers seek to limit costs without compromising on ownership.
- This shift has led to higher prices even for smaller properties, as the supply of such homes remains limited.
Urbanization and demand in key cities
Poland’s urban centers — Warsaw, Kraków, Wrocław, and Gdańsk — continue to see strong housing demand, especially in sought-after areas. Contributing factors include:
- Steady population growth in these cities, combined with an influx of investors and young professionals, maintains high demand for housing.
- Limited land availability for new developments in central areas puts further upward pressure on prices.
Government policies and market regulations
Policy changes and regulatory factors also impact housing prices in Poland:
- Programs aimed at supporting first-time buyers or subsidizing mortgage rates can affect demand levels, particularly among younger buyers entering the market.
- Environmental regulations and new energy-efficiency standards have increased construction costs, especially for projects aiming to meet high environmental benchmarks.
Future outlook for Poland’s housing market
The Polish housing market is likely to face a period of adjustment as economic conditions shift and demand factors evolve. Here’s what to expect in the coming months and years:
Stabilization of housing prices
With high interest rates and elevated construction costs, a slowdown in price growth is anticipated, especially in large cities like Warsaw and Kraków. Many potential buyers are postponing purchases due to high borrowing costs, which could reduce demand and contribute to price stabilization.
Interest rate adjustments
Although current interest rates are among Europe’s highest, future monetary policy may ease them if inflation shows sustained declines. Lower interest rates would improve mortgage affordability, potentially boosting demand in the housing market—though this impact may take time.
Continued demand for smaller homes
As buyers look to manage costs, the demand for smaller, affordable homes is likely to persist. Developers may prioritize compact, energy-efficient properties to meet this demand, especially in urban areas where affordability is a primary concern.
Shift in investor interest
As house price growth potentially slows, investors may pivot to the rental market, where demand remains robust. With many potential buyers opting to rent due to high mortgage costs, rental properties are set to become increasingly attractive investments, especially in urban centers.
Overall, while demand remains high, Poland’s housing market may see a rebalancing as economic conditions evolve. For buyers, this period could offer opportunities as prices stabilize, though competition in the rental sector may intensify as more people defer homeownership.
Sources
- Deloitte Property Index 2024. Overview of European Residential Markets
- https://www.bankier.pl/wiadomosc/Ceny-domow-gonia-mieszkania-Stawki-przeskoczyly-10-tys-zl-mkw-8823232.html
- https://www.globalpropertyguide.com/europe/poland/price-history
- https://mycompanypolska.pl/artykul/srednia-pensja-w-polsce-znow-w-gore-gus-podal-dane-dot-przecietnego-wynagrodzenia/15965
