Real Estate Market Forecasts: How Developers See Apartment Prices in 2025

What can we expect in the housing market in 2025? According to many experts, we are heading towards greater stabilization. Apartment prices are not expected to drop, and their increases will be close to the inflation rate. However, it remains uncertain what governmental measures will be implemented to support this sector.

The year 2024 was full of changes that impacted the market. Today, we will focus on the forecasts for the upcoming year. Representatives of the development sector predict that 2025 will bring stability to the housing market. A key factor influencing demand will be interest rates, which most experts anticipate will decrease. Apartment prices will also be shaped by construction costs, land availability, and inflation. According to our analysts, we should not expect a decline in apartment prices, but the growth should remain at the inflation level.

Prospects for the Real Estate Market in 2025

What changes await us in the real estate market in 2025? Various scenarios are expected, but many indicators suggest stabilization and moderate price growth.

Experts predict that the housing market will strive for stabilization. A decline in apartment prices is not expected, and the rate of their growth should be close to the level of inflation.

Specialists also note that favorable market conditions and rising apartment prices will attract clients to sales offices, which will increase the number of bookings and signed contracts with developers.

Developers do not report any issues with the supply of apartments, and Dom Development maintains a high level of sales. Atal notes that demand remains stable. Experts emphasize that if the supply of apartments exceeds demand, there is no point in increasing it. High costs of financing investments and maintaining apartments will lead to a price increase of about 10% per year.

Expectations Regarding Monetary Policy

The upcoming months will be crucial for the real estate market, especially in the context of decisions by the Monetary Policy Council (RPP). Expected interest rate cuts may positively impact the demand for mortgage loans, which in turn will increase buyers' creditworthiness. Stability of apartment prices is key, and construction costs are not undergoing significant changes.

Potential of the Institutional Rental Market

Institutional rental (PRS) in Poland is still in the development stage, but its potential is growing. The increase in interest in renting is related to difficulties in obtaining mortgage loans and changing consumer preferences.

Specialists note that PRS could become an attractive business model for investors.

In Warsaw, there are already 8,000 apartments rented out by financial institutions, making the capital a leader in the PRS segment in Central and Eastern Europe.

What does the market need?

To improve the situation in the market, key actions are needed, such as lowering interest rates and simplifying administrative procedures. Developers point out that simplifying procedures could significantly impact the pace of new apartment construction. A faster administrative process would contribute to stabilizing apartment prices by increasing their supply.