What is happening in the real estate market in Poland

The coronavirus epidemic is not receding and has a profound effect not only on our daily life, but also on the economy. Based on the statistical data collected by the Morizon.pl service, it is possible to track and assess how the epidemic affects the situation in the real estate market in Poland.

Real estate demand – comparison between I-VIII.2020 and I-VIII.2019

Real estate demandReduced demand in the rental housing market

The consequences of the epidemic were felt the most by the rental housing market. In August, which is considered the “hottest” month in this segment, for both employers and landlords and intermediaries, demand fell by 40% compared to the same period last year. Tenants, primarily students and workers from Ukraine and Belarus, who come to Poland en masse to earn money, decided to stay at home due to the coronavirus epidemic this year. Comparing the situation in the rental market year-on-year (YOY), the worst situation was in April this year, when a lockdown was introduced in Poland. The current deterioration of the situation on the rental housing market is due to the fact that the majority of universities in Poland are switching to distance learning, in connection with which thousands of students stayed at home and will study remotely.

Rental housing – demand

I-VIII.2020 and I-VIII.2019

Rental housing - demand

Demand on the rental market in the largest Polish cities in August 2020 – year-on-year comparison (YoY)

City YoY changes (%)
Warsaw – 29.4
Wroclaw – 43.7
Krakow – 45.4
Poznan – 51.4
Gdansk – 54.6
Lodz – 63.1
Poland – 42.5

Decrease in demand in the rental market and a large number of offers entail a decrease in rent – compared to last year, the amount of rent has decreased by 20%. Landlords not only reduce rental prices, but also make repairs, change household appliances and furniture in order to attract as many tenants as possible.

At the same time, the owners do not forget about high-quality advertising of their homes, using beautiful photos, framed or printed ads in bold. All is fair in a war for an employer.

Average rental price (PLN \ month)
Average rental price

Average rental price per sq.m (PLN \ sq.m \ month)

Average rental price per sq.m

Urban real estate market

There is also a decrease in demand in the urban real estate market. It can be concluded that the demand for apartments in August 2020 decreased by 1 \ 5 compared to 2019. The decrease in demand is a consequence of the fact that banks in connection with the pandemic began to issue fewer loans. In addition, clients have become more cautious – the unstable situation on the labor market does not contribute to taking risks and investing in real estate, especially in cases where the possibility of monthly loan repayment is under a big question mark.

An additional important factor that negatively affects the situation in this market segment is the shortage of proposals in the primary and secondary real estate market. The reduction in the volume of offers on the urban real estate market has several negative consequences: price stabilization, a decrease in the number of transactions, and the process of acquiring housing are lengthening. This is confirmed by a detailed analysis of changes in the house price index. The house price index describes the change in prices for the purchase of housing on the Polish real estate market. In August, the price index rose by 1220 points, which means that over the past 5 months, that is, since the beginning of the pandemic, it has decreased by 0.5%. For comparison, during the previous 5 months, that is, from October 2019 to March of this year, the price index increased by 7%.

Apartments – demand

I-VIII.2020 and I-VIII.2019

apartment demand

Stabilization of the suburban real estate market

Based on the available data, it can be argued that after an unexpected increase in the demand for the purchase of suburban real estate due to the introduction of a ban on leaving the house and visiting parks and forests, the demand in the private homes have stabilized and reached almost last year’s level (demand increased by 5% \ YoY comparison).

Not only the shortage of offers in this market but also the high prices for suburban real estate: comfortable living conditions, access to your own garden is an expensive pleasure that is still affordable. only to a few potential buyers.

Suburban real estate, houses – demand

Urban real estate - demand

Land plots at the peak of popularity

The Polish real estate market is seeing a surge in demand for land and summer houses. Although in May and June of this year, the demand for them fell, but even so, compared to 2019, it remains high. This is due to several factors, among which the most important is the introduction of a ban on leaving the house and visiting parks and forests. In these conditions, many want to acquire a land plot, which will be a kind of safety net in case this situation repeats in the future. Therefore, over the past few months, summer cottages and land for construction have been very popular among buyers. In August of this year, the number of land acquisition requests increased by 70% compared to the same period in 2019.

Land plots and cottages – demand

I-VIII.2020 and I-VIII.2019

 cottages - demand

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