Poland: Secondary housing market prices stabilize, small declines seen in studio apartments in Q4

Housing prices on the secondary market stabilized during the fourth quarter of 2024, with slight decreases observed in studio apartments across eight regional capitals, according to data from Nieruchomosci-online.pl. In these cities, average prices for studios dropped by a maximum of 3-4%, with most reductions falling within the range of 1-2%.

For buyers with cash or mortgage approval in 2024 who chose to wait for more favorable pricing, this strategy appears to have paid off. During the final quarter of the year, price stabilization or slight reductions were more common than increases in major provincial cities. This trend was particularly evident in listings for one- and two-room apartments, the report indicated.

In the case of one-room apartments, fewer cities continued the trend of rising prices compared to earlier in the year. In the third quarter, seven cities saw price increases, but this number fell to four in the fourth quarter: Wrocław, Rzeszów (increases below 2%), and Opole and Bydgoszcz (increases of up to 5%).

In contrast, eight cities experienced price declines for studio apartments: Białystok, Gdańsk, Katowice, Lublin, Łódź, Olsztyn, Szczecin, and Warsaw. Sellers in these cities appeared to adjust their expectations to align with more challenging market realities. The average asking prices in these locations decreased slightly, with reductions typically in the 1-2% range and up to 3-4% in some cases.

Price stabilization was also observed in Kraków, Poznań, Toruń, Gorzów Wielkopolski, and Kielce, where average rates per square meter changed by less than 1% compared to the third quarter.

For two-room apartments, stabilization dominated the market. Eight cities, including Bydgoszcz, Kielce, Kraków, Łódź, Poznań, Rzeszów, Toruń, and Wrocław, saw little change in prices. Slight decreases of 2-3% were noted in Warsaw, Gdańsk, Gorzów Wielkopolski, and Lublin, while other cities recorded small increases of 1-5%.

Rafał Bieńkowski from Nieruchomosci-online.pl noted a growing trend among sellers to adopt more realistic pricing strategies to facilitate faster sales. He commented, “Some sellers are recognizing the need to adjust their asking prices to reflect current market conditions, as fears of a real price correction are becoming more widespread.”

Despite stabilization in smaller apartments, three-room units, which are often considered more challenging to sell, continued to see price increases. In ten cities, sellers raised their expectations, with asking prices typically rising by 2-3% quarter-on-quarter.

Year-over-year comparisons reveal that housing prices remain higher across the board, despite the recent stabilization. According to Bieńkowski, “While bid prices have adapted slightly to weaker demand in some locations, year-on-year prices remain higher, with increases ranging from 3% to 13%, depending on the city and area.”

The number of property listings on the portal increased by 5% quarter-on-quarter in Q4 2024 and by 27% year-on-year. This growth is partly attributed to the natural replenishment of listings following the “Safe Credit 2%” program’s end in late 2023, which had temporarily reduced market offerings. Additionally, some investment property owners, faced with stagnating prices, may have decided it was time to sell.

“At the end of 2023, supply was limited due to the Safe Credit program, but 2024 brought a natural recovery in listings. Slower demand has also led to properties staying on the market longer, contributing to the increased volume of advertisements,” Bieńkowski concluded.

Source: Nieruchomosci-online.pl and ISBnews