Demand is growing, but developers are starting fewer construction projects. New report

The revival of demand on the Polish housing market in the third quarter of 2025 is directly related to improved macroeconomic conditions, including accelerated GDP growth and inflation targeted by the National Bank of Poland, according to a report prepared by Cushman & Wakefield.

Return of buyers: 40,000 applications in a month

The publication recalled that in September this year the value of credit inquiries increased by over 42%. year to year, which begins to translate into a larger number of apartments purchased by buyers financing the purchase with a loan. In total, nearly 40,000 were submitted in September. mortgage applications – the highest number in over two years.

Analysts indicate that prices on the primary market remain stable on a quarterly basis, although systematic increases are recorded in Gdańsk, Poznań and Łódź. Growing demand with limited supply puts pressure on further price increases, which may intensify with the upcoming spatial planning reform.

Developers are afraid of planning reform

The supply of new apartments in the seven largest markets remains at approximately 62,000. premises, but developers are starting fewer investments – in the first three quarters of 2025, the number of construction starts decreased by 14%. y/y, and building permits by 23%.

However, the number of permits is still very high, which is due to fears of planning reform, which may negatively affect the possibility of obtaining permits in the future, as well as the availability and costs of investment land after June 2026.

How much does the rental cost? Warsaw is still the most expensive

In the rental segment, the effect of dynamic rent increases in recent years is still visible. In Poland, the five-year dynamics reached 61%, more than three times higher than the European average. Over the last two years, rental prices have been stabilizing, following inflation.

Warsaw remains the most expensive city – the median for studio apartments is PLN 2,700 and for three-room apartments – PLN 7,000.

A gigantic transaction in the PRS sector

Cushman & Wakefield's analysis shows that the institutional rental sector (PRS) remains one of the most dynamically developing segments of the housing market. His resources exceeded 23 thousand. apartments, and in the third quarter, the largest transaction in history took place – the sale of 5,322 Resi4Rent apartments to TAG Immobilien for approximately EUR 565 million. After finalizing the transaction, TAG Immobilien will control 38%. Polish PRS.

It was added that Warsaw is responsible for 38 percent. institutional apartments operating today, and over half of the PRS stock is already rented.

Cushman & Wakefield experts estimate that the development of the institutional rental market strengthens the stability of the housing market and the sense of security for tenants and diversifies the offer. At the same time, the growing demand for mortgage loans, visible in the results of BIK inquiries, confirms the fundamental importance of the housing sector for the Polish economy and is a positive signal for the entire real estate market.

Cushman & Wakefield is a company providing services to owners and tenants of commercial real estate. It employs approx. 52 thousand. employees in approximately 400 offices and 60 countries around the world. (PAP)

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