Real estate prices in Poland and Europe in the second quarter of 2023

Let's look at how real estate prices have changed in Poland compared to other countries in Europe in the second quarter of 2023. We take Eurostat data as a basis. So, in the European Union as a whole, real estate prices in the second quarter of 2023 decreased by 1.1% compared to the second quarter of 2022. The last time a decrease in the average cost per square meter of housing in countries belonging to the European Union in quarterly terms was recorded almost 10 years ago - in the fourth quarter of 2013.

Let's look at how real estate prices have changed in Poland compared to other countries in Europe in the second quarter of 2023. We take Eurostat data as a basis. So, in the European Union as a whole, real estate prices in the second quarter of 2023 decreased by 1.1% compared to the second quarter of 2022. The last time a decrease in the average cost per square meter of housing in countries belonging to the European Union in quarterly terms was recorded almost 10 years ago - in the fourth quarter of 2013.

In the Eurozone (Austria, Belgium, Germany, Greece, Ireland, Spain, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, Finland, France, Croatia, Estonia) prices decreased even more - by 1 ,8%.

In 9 countries, the average transaction price decreased per quarter, and in 17 it increased (see table). The largest decrease in real estate prices occurred in Germany (for the quarter by 1.5%, and for the year - by 9.9%). Noteworthy is the fact that a decrease in transaction prices during the analyzed quarter occurred in most developed countries, while in poor countries prices increased.

The largest increase in housing prices in the second quarter of 2023 occurred in Croatia (13.7%). They increased significantly in Bulgaria, Lithuania and Portugal. In Poland, the price increase was 7.0%. Poland is among the countries where average property prices are rising the fastest in the European Union.

In the primary market, a decrease in housing prices in new buildings occurred only in 3 countries (Germany, the Czech Republic and Slovakia). In other European countries, developers have increased prices. In Poland – by 10.4%. This is one of the largest price increases on the primary market in Europe. As for the secondary market, it was he who determined the overall picture of the average cost per square meter of housing in most countries and in the European Union as a whole. In 11 countries, in the second quarter of 2023, there was a trend of falling prices for real estate on the secondary market, and in 15 countries, an increase in prices for housing from owners was recorded.

The secondary housing market in Germany fell to a record level (10.7%), and the largest increase was in Croatia. In Poland, the secondary market grew by 4.1%, which is less than the increase in prices in the country on the primary market (10.4%). And still a lot compared to other countries.

I would like to draw your attention to the fact that in only 3 countries (Germany, the Czech Republic and Slovakia) the average transaction prices of real estate for the second quarter of 2023 decreased in both the primary and secondary markets. That is, in this case we can talk about a full-fledged trend towards a decrease in the cost of housing in these countries.