13:19 19 June 2025
New housing market recovering; cheaper loans boosting demand
After months of uncertainty, Poland's new housing market is showing signs of recovery. A key factor was the central bank's May 2025 interest rate cut, which boosted mortgage affordability. In Q1 2025, mortgage applications rose 24% year-on-year to 98,000. PKO BP reported a 66% surge in applications in May alone, while the average loan value hit a record 467,000 zł. Although prices remain high, growth has slowed. Developers sold over 3,700 units in May—a 30% monthly increase.
Demand is supported by both Poles and foreigners, often buying smaller units with cash. Despite high construction costs, experts don’t expect major price drops due to stable demand and limited supply. The market’s outlook depends on future monetary and housing policies.
