17:16 6 January 2025
Min of Finance assures public there is no risk of a housing market bubble in Poland
The Ministry of Finance assured there was no risk of a housing bubble in Poland, despite significant price increases. According to their report, housing price growth had aligned with household income increases, indicating no market overvaluation. In 2023, housing prices rose by 8.8% and accelerated to 17.7% in Q2 2024, driven by strong demand and government mortgage support for first-time buyers. However, since 2013, price increases had remained proportionate to income growth.
The report also noted a decline in building permits in 2022 and 2023, which could limit housing supply and lead to further price hikes. The Ministry warned that limited new housing supply could sustain nominal price increases.
