2025-06-03
residential

Sales of new apartments across Poland’s seven largest markets increased to over 3,700 units in May, marking a 30% rise compared to April, according to data from Otodom. During the same period, developers introduced around 5,200 new units, raising the total number of available apartments to 62,100. This represents a 37% increase year-on-year and a 3% rise compared to the previous month. Katarzyna Kuniewicz, Director of Market Research at Otodom, noted that historical patterns show how quickly the housing market can respond to interest rate cuts, referencing the post-2020 period when rates fell to a record low of 0.1%, fueling rapid monthly growth in apartment sales. She added that while May’s increase in reservations signaled potential recovery, the rise might also be attributed to a wave of new developments rather than solely to interest rate movements. The supply side has also shown signs of recovery. Developers launched over 5,200 new units in May, with the highest volumes in Warsaw (1,300 units), the Tri-City (1,100 units), and Kraków (1,100 units). While Warsaw and the Tri-City markets typically have a sustainable offer absorption period of 4–5 quarters, Kraków’s market shows signs of strain, with absorption rates exceeding 7 quarters. As a result, Kraków’s inventory reached a record 10,500 units by the end of May. Average prices for apartments in newly launched developments increased both month-on-month and year-on-year. Despite increased activity, the likelihood of a significant price reduction remains low. The average apartment size in May was 54 square meters, with an average total price slightly exceeding CZK 809,000 — a 2% increase from May 2024. Price growth per square meter slowed slightly to 4.1% year-on-year, compared to 4.6% growth in April. While the new-build market experienced robust activity, the secondary market showed signs of cooling. Between May 1 and May 26, nearly 47,000 second-hand apartment listings were published in the seven major cities, down 6% compared to April but up 16% year-on-year. Warsaw, Kraków, and Wrocław saw the most listings, with Poznań and Łódź recording the largest annual increases in listings at 34% and 24%, respectively. Demand in the secondary market also declined modestly. By the end of May, approximately 67,000 inquiries were recorded, suggesting a likely 4% drop in user activity compared to April if the trend continues. Łódź is expected to see the sharpest monthly decline at around 13%. In terms of pricing, the secondary market remained relatively stable in May. Katowice and Warsaw posted moderate year-on-year price increases of 5% and 2%, respectively, while prices in Kraków, Poznań, and Wrocław remained largely unchanged. Only Łódź experienced a slight decline in average asking prices.