Polish Property Prices Expected to Climb 3-7% in 2026 Amid Easing Financing Conditions

Polish Property Market Forecast to Grow 3-7% in 2026

In early 2026, the Polish property market is set to experience a rejuvenation, with prices projected to rise by 3% to 7% over the year. This anticipated growth is largely attributed to the easing of mortgage rates, which peaked in 2023 but are now on a downward trajectory. In regions such as Warsaw’s Wola and Praga districts, growth has already reached an impressive annual rate of 8-12%. As Cushman & Wakefield's Trends Radar 2026 report highlights, the stabilization in the Living sector and favorable macroeconomic conditions are setting the stage for this resurgence. Concurrently, tightening supply in urban areas is further compounding the upward pressure on prices, creating a more competitive landscape for buyers and investors.

Mortgage Rates Decline to 4% Amid Improving Economic Conditions

With interest rates forecasted to drop to around 4% by mid-2026 from their recent highs, the financing landscape in Poland is becoming increasingly attractive for both first-time buyers and seasoned investors. This reduction in rates is a significant factor in the anticipated market growth, as it not only lowers monthly mortgage payments but also expands the pool of potential buyers. According to WBJ reports, the stabilization phase observed in 2025 is giving way to a new wave of growth, driven by these improved economic conditions. Furthermore, the issuance of more than 24,000 building permits in October 2025 indicates a responding supply side, although this may not entirely satisfy urban demand.

Energy-Efficient Apartments Command Premiums in Major Cities

The trend towards energy-efficient housing is becoming increasingly pronounced, as buyers prioritize reducing utility costs. This shift is particularly evident in Poland’s major cities, where energy-efficient apartments are commanding noticeable premiums. As reported by industry experts, the appeal of these properties is further bolstered by environmental considerations and the long-term cost savings they offer. According to Simpl.rent, the psychological price barriers for such properties are being challenged, with prices for luxury apartments exceeding PLN 20,000 per square meter. This trend is contributing to the overall rise in the property market, reflecting a broader shift towards sustainable living.

Impact of Demographic Shifts on Urban Property Demand

Demographic changes, notably the increase in smaller households, are influencing demand patterns in Poland’s real estate market. As more individuals and young professionals gravitate towards urban centers, the demand for compact, centrally-located apartments is on the rise. This demographic trend is particularly impacting cities like Warsaw, Kraków, and Wrocław, where the influx of residents is driving up demand and consequently, property values. The Urban Land Institute’s report indicates that such urbanization trends are critical to understanding market dynamics, as they signal continued investment opportunities in these burgeoning areas.

Investor Sentiment and the Role of Domestic Capital

The role of domestic capital in Poland's real estate market is becoming more pronounced, as local investors increasingly participate in property acquisitions. This shift is indicative of a growing confidence in the domestic economy and the real estate sector. The Emerging Trends in Real Estate Europe 2026 Report highlighted that Poland remains one of Europe's strongest growth stories, partly due to the active engagement of Polish investors across Central and Eastern Europe. RealEstateAbroad.com analysis suggests that this trend is likely to continue, providing stability and fostering growth in the market, as local investors leverage their insights to capitalize on regional opportunities.

Future Outlook: A Balanced Market Recovery

Looking ahead, the Polish real estate market appears poised for a balanced recovery, characterized by steady price increases and robust demand across various property segments. The expected rise in property prices between 3% and 7% signals a return to more sustainable growth rates, contrasting with the more volatile periods of recent years. As mortgage rates continue to decline and demographic trends persist, Poland's property market is likely to attract both domestic and international investors, keen on capitalizing on the favorable conditions. According to RealEstateAbroad.com experts, the market's resilience and adaptability position it well to weather potential economic fluctuations, offering promising prospects for those looking to invest in this dynamic landscape.

City	2025 Asking Price (PLN/m²)	2026 Forecasted Growth
Warsaw	15,300	3-7%
Kraków	14,000	4-8%
Wrocław	13,500	5-9%

• Focus on energy-efficient properties as premiums are rising.
• Monitor mortgage rate trends closely for investment timing.
• Consider demographic shifts favoring smaller, urban housing.