🏘️ Poland’s residential property market is witnessing a surge in house prices despite cooling demand and supply. In Q2 2024, the average price of existing flats in the country's major cities climbed 17.7% year-on-year, reaching PLN 12,709 (€2,900) per square meter. Adjusted for inflation, prices still increased by 14.71%, marking the steepest annual growth since 2007. Kraków led with a staggering 30.36% rise in prices, followed by Wrocław (21.36%) and Łódź (19.42%). Warsaw, with an average price of PLN 15,123 (€3,451) per sqm, remains Poland’s most expensive market. 👈
However, demand for residential properties is showing signs of weakening. In Q3 2024, only Kraków saw a slight increase in flats sold, while other cities like Poznań and Łódź experienced sharp quarterly declines of 22%-25%. Overall, sales in six major markets fell 6.9% quarter-on-quarter. Meanwhile, new housing supply is also dwindling, with Q3 2024 seeing 12,600 units launched, a steep drop from the previous quarter in cities like Łódź and Poznań.
💪 Despite this, rental yields remain strong, averaging 6.03% nationwide. Cities like Kraków and Gdańsk offer some of the highest returns, reflecting steady demand from tenants, including students and young professionals.
Poland’s mortgage market is stabilizing, with interest rates for PLN-denominated housing loans gradually decreasing, averaging 7.16% in September 2024. However, borrowing costs remain significantly higher than two years ago.
👁️🗨️ With the country’s housing market undergoing dynamic shifts, Poland continues to attract interest from global investors, thanks to its stable regulatory framework and historical growth trajectory. While the challenges of declining demand and supply persist, the market's resilience underlines its potential for long-term growth.
For an in-depth analysis, visit the full report: Poland's Residential Property Market Analysis 2024- https://lnkd.in/dTUn3fBu
