Katarzyna Borkowska, Head of Residential Sales and Letting, Signature Estates, CBRE

In 2025, the premium apartment segment operated under conditions of clearly increased demand-side caution. Today, clients need more time to make purchasing decisions than they did just a few years ago—the process that previously took around 1–3 months has now extended to 3–6 months, and in the case of houses even to 6–12 months. The position of buyers is strengthening. Prices are still rising, but at a much slower pace than a dozen or so months ago. The gap between asking prices and transaction prices is widening. The selection of luxury apartments is large, but developers are approaching new projects more cautiously and are more often seeking buyers among foreign clients.

Purchases have become less emotional and more analytical, with buyers increasingly comparing real estate to other forms of capital allocation. This is influenced both by experiences following the post-pandemic surge in prices and by geopolitical factors, which encourage some clients to diversify their capital through foreign investments or more liquid financial instruments.

A Buyer’s Market

The market has clearly shifted toward a buyer’s market. A significant difference between asking and transaction prices is visible. According to data from the National Bank of Poland (NBP), this gap reaches as much as 15%, affecting not only the premium segment but the entire residential market. The growth in luxury apartment prices has slowed. Prices are still increasing, but at a stable and moderate rate of around 4–5% annually, in contrast to the double-digit increases observed during the pandemic.

A similar trend can be seen in the rental market, where after a period of very strong demand—particularly following the outbreak of the war in Ukraine—property owners had to adjust their price expectations, and the rental process became longer. There is also a visible decline in the number of new applications and building permits, resulting from the limited availability of land in large cities and high plot prices. Developers are currently carrying out fewer projects simultaneously and are taking a more cautious approach to further investments.

Clients seeking premium apartments have the widest choice in Warsaw, which has 19 projects with apartment prices exceeding PLN 35,000 per square meter. Tricity ranks second with 9 such developments, followed by Kraków (7) and Wrocław (3).

A New Definition of Luxury

On the supply side, there is a noticeable development of strictly premium projects that are redefining the concept of luxury. Developers are increasingly focusing not only on architecture and location, but also on quality of life, health, and accompanying services. Expanded wellness and spa zones, fitness facilities, swimming pools, yoga rooms, physiotherapy consultations, concierge services, and solutions aligned with the “15-minute city” concept are becoming more common. Resident applications are becoming standard, and offers increasingly take into account the needs of pet owners. An attractive architectural design alone is no longer a sufficient differentiator.

Market Development in 2026

From a macro perspective, the residential market in Poland remains in a growth phase, supported by the inflow of international companies and foreign employees, particularly in large cities. A major challenge remains very low birth rates, which is why developers are increasingly targeting foreign clients as well, preparing communication in multiple languages. Poland remains a “green island” in terms of investment opportunities for large international companies. More and more of them are establishing their headquarters here and relocating employees from other countries who are interested in premium real estate.

In the coming months, a further stable, low single-digit increase in prices is expected. Interest rate cuts are already translating into a rise in the number of mortgage inquiries, which may gradually increase demand. At the same time, more listings may appear on the secondary market, among other reasons due to declining rental yields and the aging housing stock. The number of properties for sale is currently very high, and the sales process is extended, which forces greater price flexibility. At the same time, the importance of the PRS sector and institutional investors is growing, as they purchase entire buildings intended for rental, responding to the needs of clients for whom renting remains the preferred option.

Translated from Polish. 

(WBJ)