Poland Mortgage demand rises

The value of mortgage applications soared by over 42 pct year-on-year in September, which is also starting to translate into a higher number of home sales for buyers using credit.

Foundations of Recovery

The housing market in Poland consolidated its position on a solid economic footing over the third quarter of the year. Economic growth accelerated to 3.7 pct year-on-year (preliminary data from the Central Statistical Office), the best result since the fourth quarter of 2022. Inflation in September remained within the National Bank of Poland's target (below 3 pct), allowing the Monetary Policy Council to lower the main reference rate to 4.75 pct. A stable labour market, with an increase in the average gross monthly salary of 7.5 pct year-on-year (to PLN 8,769), has significantly improved Poles' creditworthiness. These factors have also led to a recovery in the mortgage market. In September 2025, the value of loan inquiries increased by 42.2 pct year-on-year, and the total number of submitted mortgage applications reached nearly 40,000 – the highest result in over two years.

It was only a matter of time before borrowers returned to the market, and macroeconomic stabilisation became the catalyst for this process. Interest rate cuts and wage increases effectively translated into a real improvement in creditworthiness. Although asking prices on the primary market remain stable on a quarterly basis, local markets such as Gdańsk, Poznań, and Łódź are seeing consistent increases. In the near term, due to persistently high demand and structural supply constraints, we anticipate further upward pressure on average prices, especially in the face of the upcoming spatial planning reform.
Tadeusz Bellaby, junior research analyst, Cushman & Wakefield

Supply and Planning Challenges

In the seven largest cities, the supply of new apartments offered for sale by developers remains high, at approximately 62,000 units. This translates into additional units being added to the market – in the first three quarters of 2025, the number of apartments started fell by 14 pct year-on-year, and the number of building permits decreased by approximately 23 pct compared to the record-breaking figure of 2024. However, the number of permits remains very high, reflecting concerns about the planning reform, which may negatively impact the ability to obtain permits in the future, as well as the availability and cost of development land after June 2026.

Rent Growth and Consolidation in the PRS Sector

The European residential rental market has seen significant rent increases over the past five years, with the CEE region experiencing the highest growth. The average five-year rent increase in Poland reached 61 pct in Q2 2025, placing Poland just behind Hungary (which recorded an increase of over 100 pct) but significantly above the European average (around 19 pct). Despite the high five-year growth, rent growth in Poland has stabilised over the past two years, tracking inflation. Warsaw remains the most expensive city in the rental segment, with the median price for a studio apartment being PLN 2,700, and the median price for a three-room apartment being PLN 7,000 (excluding service charges and utilities).

The institutional rental sector in Poland continues to grow, reaching a stock of over 23,000 units and entering a consolidation phase. The biggest event of the third quarter of 2025 was the historic transaction (still awaiting UOKiK approval) of the sale of 5,322 apartments from Resi4Rent to TAG Immobilien for approximately EUR 565 mln. Once finalised, Vantage Rent (TAG Immobilien) will account for 38 pct of the PRS stock in Poland. Warsaw remains the leader, accounting for 38 pct of all operating PRS apartments. Importantly, 54 pct of the PRS stock is currently leased, while 46 pct is under construction or in the planning stages, confirming the strong investment pipeline.

Consolidations in the PRS market, including the Resi4Rent and TAG Immobilien transactions, will demonstrate the maturity and attractiveness of this segment for large, long-term capital. Investors appreciate the prospects for stable rent growth, which in Poland, despite a slowdown in rapid growth, remains at a level that tracks inflation. The development of the institutional rental market strengthens the stability of the housing market, increases tenants' sense of security, and diversifies the offer. At the same time, the growing demand for mortgage loans, visible in BIK (Credit Information Bureau) inquiries, confirms the fundamental importance of the housing sector to the Polish economy and is a positive sign for the entire real estate market.
Karolina Furmańska, associate, living sector, Cushman & Wakefield