Interesting facts about real estate in Poland

Interesting facts about real estate in Poland

Residential (apartment) market in Poland

Number of residential buildings built in Poland in 2010-2020

In 2020, about 221 thousand residential units were built in Poland, which is 6.5% more than in the previous year (207.5 thousand units). Compared to 2010, there was an increase of 62.6 percent (136 thousand units). The largest share is in apartments with three or four bedrooms.

Average usable area per dwelling in Poland in 2010-2020

The highest average area of ​​built housing in Poland was recorded in 2011 and amounted to more than 107 square meters. Since then, the useful area of ​​the premises has been systematically reduced, decreasing in 2020 to almost 89 square meters.

Average cost of residential properties sold in Poland in 2019

In 2019, an average of PLN 326.6 thousand was spent on the purchase of an apartment on the primary market in Poland, and almost PLN 258 thousand was spent on the secondary market. The average price of one dwelling with an area of ​​40.1 to 60 sq.m was PLN 289.4 thousand in the primary market and PLN 237.6 thousand in the secondary market.

Number of residential properties for sale or rent in Poland in 2010-2020

In 2020, a total of more than 142.6 thousand housing units for sale or rent were built in Poland, which is 8.6% more than in the previous year.

Average monthly apartment rental rates in selected cities of Poland in 2019-2020

In the fourth quarter of 2020, in all surveyed cities in Poland, there was a further reduction in rental rates for individuals. This was affected by the situation associated with the COVID-19 pandemic. The average rent for an apartment in Warsaw in the fourth quarter of 2020 was PLN 1,666 and was 2.83 percent lower compared to the previous quarter. The most significant decline was recorded in Krakow and Gdansk.

Average rental income in selected cities in Poland in 2021, by rental period

At purchase prices and rental rates for real estate in Poland in February 2021, the average net return on investment in renting an apartment was 3.2 percent (when the apartment is occupied ten months a year). If the apartment was occupied for 12 months of the year, the yield increased to a net 4.2 percent. However, if it was empty for six months of the year, the yield was only 1.3 percent net.

Market of residential premises (individual houses) in Poland

Number of houses built in Poland in 2020

In 2020, over 97,000 houses were built in Poland, most of them in rural areas.

Share of developers in the total number of built single-family houses in Poland in 2011-2020

Over the observed period, the share of developers in the total volume of completed single-family homes in Poland has grown steadily from eight percent in 2011 to 26 percent in 2020.

Number of houses offered by developers in Polish cities in 2021

In April 2021, developers offered the largest number of houses in Warsaw and its environs. Most of the houses were built by developers on the outskirts of Polish cities.

Area of ​​houses offered by developers in Poland in 2021

The most commonly offered houses in Poland by developers are townhouses or semi-detached houses, which come with a small plot of land. Depending on the metropolis, developers offered houses of different sizes. The widest choice in this respect could be found in Warsaw. In all Polish cities, the most popular were houses with an area of ​​up to 120 square meters, as well as from 121 to 180 square meters.

Average number of rooms in a house in Poland in 2020

In 2020, the average number of rooms in Poland was over five rooms in single-family homes. At the same time, the smallest number of rooms was recorded in houses in urban areas.

Changes in the average usable area of ​​new houses in Poland in 2011-2020

During the observed period, it is possible to determine the overall decrease in the average usable area of ​​a new single-family home in Poland, built either by a private investor or a developer. If in 2011 the average area of ​​a completed house was 150 square meters, then in 2020 this area has decreased to 133.2 square meters.

About transactions of purchase and sale of residential real estate in Poland

The number of real estate purchase and sale transactions in Poland in 2019

In 2019, over 468,000 properties were sold in Poland, of which residential properties accounted for the largest percentage.

The cost of real estate purchase and sale transactions in Poland in 2019

In 2019, real estate sales in Poland amounted to more than PLN 121.7 billion, of which most of the value is in residential real estate.

Number of sales of residential premises in Poland in 2019 by number of rooms

In 2019, more than 217.2 thousand residential premises were sold in Poland, of which three-room apartments are the most popular.

Sales of apartments in Poland 2019-2020 for major developers

In 2020, Polish developers sold more than 21.9 thousand apartments, which is almost six percent less than in the previous year. Dom Development had the largest sales (3.75 thousand apartments). Lokum Deweloper had the most significant year-over-year sales growth, while developer Wikana had the most significant decline.

Sales structure of residential premises in Poland in 2019 by market type

In terms of the number and value of residential units sold in Poland, sales on the secondary market dominated in 2019.

Number of residential properties sold in Poland in 2019, by market type and area

In total, about 80,000 apartments were sold on the primary market in 2019, and 129,000 on the secondary market. The most popular in Poland were apartments with an area of ​​40.1 sq. m to 60 sq. m.

Average usable area of ​​residential premises sold in Poland in 2019, by rooms

In 2019, the average area of ​​residential units in Poland sold on the primary market was almost 57 square meters, and on the secondary market - just over 53 square meters. New apartments for sale were larger than apartments sold on the secondary market, regardless of the number of rooms.

Residential property prices in Poland

Prices on the real estate market in Poland in 2019-2020

Prices in the real estate market are growing from year to year. In the second quarter of 2020, the annual increase in prices for apartments in the primary market in Poland amounted to 5.3 percent, and in the secondary market - 15.4 percent. In 2019, an average of PLN 326.6 thousand was spent on the purchase of an apartment on the primary market in Poland, and almost PLN 258 thousand on the secondary market.

Annual change in the house price index in Poland 2017-2021

In the observed period, the highest annual increase in prices for residential property in the primary market of Poland was recorded in the second quarter of 2021, when apartment prices increased by 8.6 percent year on year. The largest growth in the secondary market was recorded in the second quarter of 2020 at 15.4 percent year on year. In the second quarter of 2021, residential real estate prices increased by 8.3 percent compared to the same period last year.

Average cost of residential properties sold in Poland in 2019

In 2019, an average of PLN 326.6 thousand was spent on the purchase of an apartment on the primary market in Poland, and almost PLN 258 thousand was spent on the secondary market. The average price of a residential unit ranging from 40.1 to 60 sq.m was PLN 289.4 thousand in the primary market and PLN 237.6 thousand in the secondary market.

Average prices for apartments less than 38 sq. m in Poland in 2021

Apartments up to 38 sq.m in the primary and secondary market as of January 2021 were the most expensive in the capital of Poland, Warsaw. The average price of an apartment up to 38 sq.m in Warsaw on the secondary market was PLN 13.1 thousand per sq.m.

Average prices for apartments with an area of ​​38-60 sq. m in Poland in 2021 in Poland in 2021

Apartments ranging from 38 to 60 square meters as of January 2021 in the primary and secondary market were the most expensive in the capital of Poland, Warsaw. The average price of an apartment with an area of ​​38-60 square meters in Warsaw on the secondary market was more than PLN 11.6 thousand per sq.m.

Average prices for apartments with an area of ​​60-90 sq. m in Poland in 2021 in Poland in 2021

Apartments ranging from 60 to 90 square meters in the primary and secondary market, as of January 2021, were the most expensive in the Polish capital Warsaw. The average price of an apartment with an area of ​​60-90 square meters in Warsaw on the secondary market was almost PLN 11.8 thousand per sq.m.

Mortgage loans in Poland

The demand for mortgage loans is increasing every year. The market saw a decline in 2020 due to the coronavirus (COVID-19) pandemic. But already in April 2021, the demand for mortgage loans increased by 94.3 percent compared to the previous year. In 2019, the share of housing loans in the total value of active receivables of banks amounted to about 60.2 percent. In the same year, the share of housing loans in PLN was 72.3 percent, an increase of more than 22 percentage points compared to 2013. In 2019, a much smaller percentage of home loans were taken out in foreign currency. This data shows that Poles have become more aware of the risks associated with the exchange rate.

Ranking of developers in Poland by revenue

By revenue in 2020, the largest property development company in Poland was Dom Development Capital Group, followed by Echo Investment and Atal.