Better Than January: February Sees a 25% Increase in Developer Home Sales

By the end of February, home sales from developers could be up to 25% higher compared to January. At the same time, supply remains at a record level of over 57,000 units. As a result, we are now witnessing the first annual price declines. The secondary market is also following the primary market trend. Marcin Krasoń and Milena Chełchowska from Otodom comment on the situation in the housing sector.

A Shorter Month but Better Sales

“Even after adjusting for preliminary data, the number of homes sold last month is likely to be 20-25% higher than in January. This is, of course, good news for developers, who are selling more while continuing to introduce a significant number of new apartments to the market. As a result, supply in this segment remains high, and we are seeing the first annual declines in home prices,” comments Marcin Krasoń, a housing market expert from Otodom.

Otodom Source Data

Developers sold over 3,500 apartments in February, marking the best result since spring of last year. Moreover, sales growth occurred in seven major markets compared to the 12-month average, with Warsaw and Krakow performing particularly well. Krasoń notes that supply followed a similar trend—in February 2025, developers introduced nearly 3,200 apartments for sale in the largest cities, an 18% drop from January.

“The combination of demand and supply, along with reservation activity, led to a record number of 57,300 developer apartments on the market. Including suburban areas and houses, developers currently offer as many as 83,400 residential properties. There is plenty to choose from,” adds the Otodom expert.

Small Changes in Major Cities

In February, sales were strongest in Warsaw (1,232) and Krakow (594). In both cities, the preliminary figures exceed January’s results by approximately 45%. The only city where month-on-month sales declined was Katowice. Compared to the 12-month average, Warsaw (+39%) and Krakow (+26%) performed exceptionally well. Meanwhile, the highest number of new apartments entered the Krakow market—765. Warsaw came in second with 617 newly listed units, just half of its 12-month average. Wroclaw added 256 new units, and Katowice 175.

A continued high number of new listings has further increased developer inventory in Krakow. By the end of February, 9,400 apartments were available in the city, an increase of 113% compared to the previous year. No other city saw such significant growth, but this is partly due to a low base—just a few quarters ago, Krakow’s market was in a much weaker state. Currently, the third-largest supply is in Lodz (8,900), followed closely by Wroclaw (7,900).

Price Stabilization and Initial Declines

“Developers’ price lists remain stable. Small corrections are interspersed with minor increases, making the market relatively stable overall. February’s monthly changes were similar to those in previous months. The largest decline, at 0.7%, was recorded in Lodz, while the highest increase, at 0.2%, occurred in Warsaw. This stabilization has naturally slowed down annual price growth,” explains Marcin Krasoń.

At the end of February, the highest year-over-year price increase was in Krakow (+8%). At the other end of the spectrum were Tricity (+0.5%) and Poznan, where developer listing prices were 0.8% lower than a year ago. In Katowice, Lodz, Warsaw, and Wroclaw, annual price changes ranged between 5-6% growth. The highest prices remain in Warsaw (17,300 PLN per square meter) and Krakow (16,400 PLN per square meter), while the lowest among the seven analyzed markets are in Katowice (12,300 PLN per square meter) and Lodz (11,100 PLN per square meter).

“It is worth noting that in most markets, the apartments being sold in February were about 10-15% more expensive than those sold a year earlier. Why is there such a difference between the prices of sold apartments and listed prices? This is due to a change in buyer demographics—a year ago, many homes were purchased with subsidized loans under the Safe Mortgage 2% program. Today, the market is dominated by buyers who have no issues with creditworthiness or are purchasing with cash,” explains the Otodom expert.

The Secondary Market Follows the Developer Market

The revival in the secondary market, visible since the beginning of the year, continues, although its momentum in February was lower than in January. The number of available listings slightly declined—a 2% decrease across the seven largest cities compared to the previous month, bringing the total to 50,600 listings. The most significant drop was in Poznan (-4%). Meanwhile, buyer activity in the secondary market was 6% lower than in January. However, the number of responses to listings remains high, with private sellers and real estate agents seeing 18% more inquiries than a year ago.

“The increased activity of buyers in the secondary market is still a result of aggressive developer marketing at the end of last year. Holiday promotions and discounts attracted buyers to the primary market, but those who didn’t find suitable options there resumed their searches at the beginning of this year, this time also considering the secondary market. However, for homebuyers, key criteria include factors such as size, location, and layout rather than whether the apartment is new or pre-owned,” highlights Milena Chełchowska, a housing market expert from Otodom.

Similar to the developer market, prices in the secondary market remained stable. In February, the average price per square meter for second-hand apartments in the seven largest cities was 13,300 PLN, up by just 0.3% compared to January.

Rental Market Activity

The first months of the year have seen increased activity among rental property owners. By the end of February, nearly 17,000 rental listings were available in the seven largest cities, a 5% increase compared to January. It appears that after the weaker demand in autumn and winter, potential tenants have resumed active searches. The number of responses to listings in Warsaw, Krakow, Wroclaw, Katowice, Lodz, Poznan, and Tricity reached 177,000 in February—28% higher than a year ago and the second-highest since September 2024. Interestingly, the most active rental seekers were in Warsaw (accounting for 36% of all rental inquiries in Poland). Wroclaw ranked second (9%), followed by Krakow (8%).

Source: ManagerPlus