Poland’s housing market is undergoing a remarkable transformation, offering a unique blend of affordability, modernity, and investment potential. As the country continues its upward trajectory, 2025 presents an opportune moment to delve into its dynamic residential landscape. From comparisons with European counterparts to the burgeoning private rental sector (PRS) and a growing luxury market, Poland’s housing scene holds immense appeal for both domestic and international audiences.
A Comparative Snapshot: Poland vs. Europe
Housing affordability remains one of Poland’s most attractive features, especially compared to Western European markets. In Warsaw, the average cost per square meter stands at €2,200, significantly lower than in Berlin or Paris, where prices exceed €5,000 and €11,000, respectively.
The housing saturation index in Poland is currently 420 units per 1,000 inhabitants, lagging behind the EU average of 514 units—a gap expected to close by 2040, according to the National Bank of Poland (NBP). However, Poland is rapidly modernizing its housing stock.
The current housing stock, estimated at 15.2 million units, is predominantly owned by private individuals. Developers built 62% of new housing over the past five years, while private individuals contributed 36%. Municipal, social rental, and company housing remain marginal, accounting for just 2% of new units in 2023, according to Karolina Furmańska, Associate, Residential Expert w Cushman & Wakefield.
In the first quarter of 2024, developers began nearly 42,000 new units—a historic record—marking a 79% increase compared to the same period in 2023 and 33% higher than in 2022. Building permits also rose by 45% year-on-year. This surge has brought over 50,000 units to the market as of June, with completions in the first five months of 2024 nearly matching pre-pandemic levels from 2019–2023.
Addressing the Housing Shortage
Despite record-breaking activity, Poland faces a significant housing deficit of approximately 1.5 million units. Experts note that this estimate is likely conservative, as it does not account for corporate, seasonal, foreign, war migrant, and student housing needs. Additionally, “second homes” in tourist hotspots like Międzyzdroje and Mielno inflate local statistics, while Warsaw ranks 11th for housing units per 1,000 residents.
Ownership dominates Poland’s housing market, with 87% of Poles living in their own apartments. This preference is deeply rooted in historical and cultural contexts and has contributed to the relatively low development of the rental market. Comparatively, only 4% of Poles rent on market terms, versus 25.2% in Western Europe, highlighting a vast untapped potential for rental growth in Poland.
The Growing Private Rental Sector (PRS)
The demand for housing in Poland is already significant, and by 2050, cities such as Warsaw, Kraków, Poznań, and Gdańsk are expected to see further population growth. As urban centers expand, private rental sector (PRS) funds are stepping in to address the housing supply gap.
“PRS funds are helping to bridge the existing supply gap through their activities. Moreover, the institutional rental offer is designed to cater to every group of tenants, including foreigners or pet owners, regardless of the rental period,” says Michał Witkowski, Director of Living Services at Colliers.
Warsaw leads with 8,000 PRS units, and plans are underway to double that number. Other major cities such as Kraków, Wrocław, and Gdańsk are following suit, contributing to the nationwide total of 20,900 PRS units—a 112% increase over the past year—with another 8,400 under construction. Rental prices in major cities rose by only 3% year-on-year in 2024, reflecting a stable and affordable market.
As housing prices rise and mortgage access remains challenging, PRS offers modern, sustainable solutions. It appeals to young professionals, families, and those seeking flexible housing options, highlighting its role in bridging the gap between demand and supply.
Stabilization Amid Price Growth
While housing prices continue to grow, the pace has slowed. In Q3 2024, prices in Poland’s 17 largest cities increased by an average of 14% year-on-year in the primary market and 18% in the secondary market—slower than previous quarters. Simultaneously, rental prices stabilized, with a 3% year-on-year rise in major cities.
The high cost of financing remains a challenge, with Poland’s mortgage rates averaging 7.83% in Q3 2024—the highest in Europe. Despite this, demand for housing remains robust. Over 85,000 mortgage applications were submitted in Q3, only slightly lower than the previous quarter.
“The Polish housing market has a very healthy structure. It accommodates those who want to own homes, individual clients looking to invest surplus funds in rental properties, and entities professionally involved in rental services,” Witkowski explains. A broad offering across these segments ensures housing accessibility for diverse demographics, from young renters to families seeking ownership.
Data from Otodom Analytics shows that over 70% of clients searching for real estate planned to purchase a property for personal use. In the premium and luxury segment, increased interest was observed as clients view these investments as a safeguard against inflation.
Luxury and Premium Market
“In 2024, premium and luxury properties were the ones selling the most,” said Marzena Strugińska-Kiełboń, Business Development Director at Partners International, in an interview with Business Insider Polska. “This market segment is resistant to economic crises and does not fluctuate. Clients treat it as a way to safeguard capital against inflation, grow their wealth, and diversify their investment portfolios. For such purchases, factors like a prestigious location with exceptional architecture, high-end finishing, access to a pool, gym, concierge services, and panoramic city views are crucial. Important considerations also include safety, proximity to work, and the uniqueness of buildings, such as restored tenement houses or palaces, as well as attention to detail and the history of the location,” the expert emphasized in the interview.
According to estimates from Cenatorium, as cited in KPMG’s report The luxury goods market in Poland published in December 2024, the value of Poland’s premium and luxury real estate market is expected to rise again in 2024, reaching 3.5 billion PLN. This marks a 6.7% increase compared to the previous year but reflects a slowdown in growth dynamics by approximately 8 percentage points.
Despite limited access to full-year data at the time of the report’s preparation, exceptional transactions have been recorded in the luxury housing market since the beginning of 2024. The value of selected apartment sales has more than doubled the record set in 2023. Likely the most expensive of these, a 435 m² apartment in Gdańsk, was sold for 24.8 million PLN in the first half of the year. Another apartment, spanning 342 m² in Warsaw’s Szara Street, reached a transaction value of 20.4 million PLN. Additionally, a residence in Warsaw’s Żoliborz district was sold for a record-breaking 50 million PLN in November, setting a new high for luxury homes in Poland.
The premium and luxury real estate market in Poland is increasingly characterized by off-market transactions, as emphasized by KPMG experts. This strategy targets a carefully selected group of buyers willing to pay for exclusivity, uniqueness, and privacy. Sellers value full control over the visibility of their listings, while intermediaries rely on relationships, appropriate contacts, and direct recommendations to better meet clients’ specific needs. This model reduces time pressure, making negotiations more comfortable. Location remains a key selection criterion, with the prestige of the district and access to amenities like restaurants, museums, and concert halls playing a significant role. Buyers are also drawn to the extensive amenities within properties, expecting high safety standards both for the property and throughout the transaction process, especially when sales involve valuable items included in the purchase.
The luxury real estate market continues to grow, albeit at a slightly slower pace than in previous years, while also maturing. The perception of luxury is noticeably shifting—less about extravagance and more about advanced technologies that enhance quality of life and focus on sustainability. It is hard to imagine a luxury property today that does not meet the highest standards of energy efficiency and resource conservation.
Modern luxury increasingly reflects the evolving structure of society. Successive generations of wealthy Poles are placing greater emphasis on ecology and well-being, while also remaining sensitive to changing geopolitical situations. This likely explains the ongoing trend of investing in properties away from conflict zones, which not only safeguards surplus capital but also creates potential evacuation destinations in extreme situations. In more stable times, such properties offer the added benefit of passive income. These trends are expected to intensify in the coming years.
However, the locations where Poles purchase luxury properties may shift due to increasing climate risks in certain parts of Europe. Nonetheless, properties offering proximity to nature are expected to remain popular. This explains the enduring appeal of Trójmiasto (Gdańsk, Gdynia, Sopot) as one of the leading locations in Poland’s luxury real estate market, according to Marcin Malmon, Associate Director, Real Estate Advisory and Valuation Team, Deal Advisory Department, KPMG Poland.
