New real estate market data. Expert: It will not be a year of reductions
“For the real estate market it will not be a year of reductions” – Monika Hercog, director of Lafrentz Home.
February reports show the stabilization of housing prices in Poland, but in two cities the first declines have been recorded in three years. Is this a announcement of major changes to real estate markets?
The Polish Economic Institute (PI) said that in February 2025, housing prices in the six largest cities increased by 0.2 percent. Compared to January, and the average price of 1 sq m. Apartments all over Poland amounted to 11.8 thousand PLN, while in the six largest cities – 15.4 thousand zloty.
February stabilization on the real estate market
According to the opinion, the institutes “February is another month of stabilization on the real estate market. The increase in prices on an annual basis oscillates around 5 percent. in all size groups. In the largest cities, price increases amounted to 3.4 percent. in an annual basis and was more or less at the price level of April 2024. ” – we read in the Pie report.
– The last few years have been a really difficult time for the Polish real estate market. The changes recorded in the current quarter, i.e. a decrease in housing prices, among others in Warsaw and Krakow, seem rather have its basis in some kind of economic stabilization – notes Monika Hercog, director of Lafrentz Home in an interview with “Wprost”.
Expert: “This is not a downward trend”
In his monthly report, Pie pointed out that the prices of apartments in two Polish cities were recorded in February. “In Krakow and Warsaw, housing prices fell by 3.3 percent, respectively. and 0.3 percent In an annual basis, “says the Institute and emphasizes that this is the first such situation in three years. Can these results indicate the upcoming declines of real estate prices? According to the expert – not necessarily.
– This is not a downward trend, but stabilization after dynamic changes in the last time – believes Monika Hercog and indicates that the dynamics of real estate prices predicted for this year will be quite different.
– From my last year’s conversations with developers, it is clear that 2025 will not be a year of reductions. This is related first of all with new guidelines in the field of ecology in construction, and secondly with the persistent high land prices and their increasingly lower availability, especially in large agglomerations – says the expert.
