Housing prices surge across major Polish cities despite record supply

Housing prices in Poland continue to soar across most major cities, despite an influx of new housing stock and cooling demand. This ongoing trend is highlighted in the latest Metrohouse and Credipass Barometer for Q3 2024, in partnership with RynekPierwotny.pl. The report reveals that properties under PLN 10,000 per square meter are becoming increasingly scarce in major city markets.

According to Metrohouse expert Marcin Jańczuk, while the high housing supply and limited buyer activity typically suggest conditions for price stabilization or decreases, Poland’s housing market remains surprisingly resilient. “Rather than experiencing the expected price adjustments, we’re seeing a continuation of price hikes. These are not localized increases but are widespread across most large cities,” Jańczuk noted. Only in Łódź do average transaction prices remain under PLN 10,000 per square meter for pre-owned apartments.

Mortgage availability, however, remains a limiting factor. As Credipass financial expert Andrzej Lukaszewski explains, high-interest rates and strict bank lending policies have prevented many from taking on new mortgages. This has, in turn, slowed both the housing and mortgage markets, despite relatively stable creditworthiness for most buyers. In Q3, a two-person family with a monthly household income of PLN 12,000 saw their credit limit decrease marginally to PLN 741,000, while couples without children qualified for slightly more, at PLN 766,000.

Developers also report reduced activity. Sales across Poland’s six largest housing markets fell by 13% in Q3 compared to Q2, while new listings dropped by 6%, according to RynekPierwotny.pl. Yet, housing prices remain resilient. Average prices for new units increased across each of the top six markets.

At the end of September 2024, Łódź and Poznań had the highest share of new apartments priced under PLN 10,000 per square meter, at 27.6% and 10.9%, respectively. In Warsaw, where demand is particularly strong, only 0.9% of new listings fell below this price threshold, underscoring the affordability challenges faced by potential homebuyers in the capital.

Source: ISBnews