Residential market
The residential sector in Poland is still stable and safe for investing capital. However, rising inflation and housing prices have reduced the demand for residential real estate. The high NBP reference rate and unabated supply in the market have caused a decline in interest in housing loans. In August 2022, demand for mortgage loans noted a record drop.In 2021, more than 234.6 thousand apartments were built, and more than 871 thousand were under construction. The value of sales on the real estate market amounted to over 198 billion zloty. Poles were most willing to buy two- and three-room apartments. In the primary market, the most popular units had an area between 40 and 80 square meters. On the other hand, the secondary market was characterized by increased demand for smaller apartments, up to 60 square meters.
By the end of 2022, residential prices increased by over nine percent yearly, with primary-market dwellings showing an increase of nearly 11 percent. In July 2022, in three cities (Warsaw, Gdańsk, Kraków), apartment prices in primary and secondary markets exceeded the 12 thousand zloty per square meter barrier, with Warsaw being the most expensive city in the country.
Commercial market
Unlike residential real estate, the commercial market was dominated by the COVID-19 pandemic. The sectors most affected by the pandemic were office and retail real estate. The reduced trade and the shift to remote working caused significant losses in these sectors. The value of commercial real estate investments fell by more than 66 percent in 2020. The following year, the market slowly began to recover, and investment values increased by nearly 37 percent.Warsaw has the largest share of the office market in Poland. In 2021, nearly 315 thousand square meters of space were under construction. Poland's capital city was characterized by the highest supply of office real estate and a relatively low vacancy rate. Warsaw was also the most expensive city in terms of lease price. One meter of office space cost from 12.5 to 27.3 euros in 2022.
Industrial real estatewas the sector most resistant to market changes in recent years. Changing consumer habits and shifting from traditional to online shopping helped the industry survive this difficult period. In 2022, the e-commerce sector constituted seven percent of the industrial real estate market in terms of demand.