The housing market is not divided only into cheap and expensive properties. Between these two extremes, there is a clearly defined segment of moderately priced apartments. While the cheapest and most expensive homes are most often bought for cash, the middle of the market is dominated by buyers who finance their purchases primarily with mortgage loans — and this is statistically the largest group of buyers. An Otodom expert explains what the “mortgage hill” is and how significant this phenomenon is in Poland.
As Paweł Jarząbek, Research and Analysis Manager at Otodom, notes, demand in the Polish housing market is usually analysed through the lens of buyers’ age or price levels. However, it is also worth looking at the structure of financing used to purchase a property.
According to an Otodom survey conducted among the platform’s users, most transactions in price segments up to PLN 400,000 are carried out in cash. As prices increase, however, the importance of mortgage financing grows. Already in the PLN 250,000–400,000 range, the share of mortgage-financed purchases approaches one third of all transactions, while in the PLN 400,000–700,000 segment it exceeds 40%. This is the price range most frequently and most strongly supported by mortgage financing, while at the same time accounting for the vast majority of demand.
“Above this level, dependence on mortgage financing begins to weaken. Although in the PLN 850,000–1 million price segment its share remains relatively high, the more expensive the property, the more systematically mortgage financing declines. In the case of the most expensive properties, priced above PLN 1.4 million, almost seven out of ten purchases are already made in cash, while the importance of mortgages falls to a marginal level. This is a group of affluent clients interested in premium investments or financing the purchase of a new, expensive apartment or house with funds from the sale of another property,” explains Paweł Jarząbek from Otodom.
Pumping up the mortgage hill: macroeconomics in the background
The phenomenon of the so-called mortgage hill is currently being additionally reinforced by demand for housing loans not seen in years. According to data from the Credit Information Bureau, in the first quarter of 2026, 144,000 people applied for this type of financing, which represents an increase of 47% year on year and 83% compared with 2024. March 2026 alone brought 63,300 applications. It is also worth noting that the average requested loan amount reached a record level of PLN 506,000.
According to BIK data, in January and February banks granted 44,900 housing loans with a total value of PLN 20.4 billion. This means an increase of 41.8% in numerical terms and 53% in value terms year on year. Housing loans granted in Poland finance both purchases on the primary and secondary markets, as well as refinancing of existing loans. In January and February this year, refinancing may have accounted for around 30% of the number of loans.
This does not change the fact that Poles have clearly turned to banks for property financing. Based on the dynamics of enquiries recorded in February, it can be estimated that in the entire first quarter of 2026 the number of granted housing loans will reach around 70,000, with a total value of approximately PLN 31 billion. Forecasts for the second quarter of this year are positive. This means that demand from mortgage-financed buyers is unlikely to weaken in the coming months of 2026. The key question, therefore, is how buyer activity will look in individual city housing markets.
In these cities, mortgage buyers may face an uphill battle
“In each of Poland’s seven largest cities, different risks and opportunities can be identified, because the market is not uniform. Whether a buyer enters the market with cash or with a mortgage puts them in a completely different position depending on the agglomeration,” notes the Otodom expert.
“There are cities where cash buyers set the terms, and their budgets significantly exceed the possibilities of those relying on mortgage financing. Examples of such locations include Warsaw and the Tricity. In Poznań, Kraków and Wrocław, the situation is the opposite — mortgage borrowers statistically have higher budgets. In Łódź and Katowice, there is relative balance between the budgets of mortgage-financed buyers and those relying more heavily on cash,” adds Paweł Jarząbek.
Two voices of the market: Warsaw and the Tricity
In the Warsaw market, the share of cash transactions at 43% and mortgage-financed transactions at 39% is very similar. However, buyers using mostly their own funds have an average budget that is PLN 138,000 higher than that of mortgage borrowers, at PLN 830,000 compared with PLN 692,000. A high share of property purchases financed with own funds is also visible in the Tricity, where cash transactions account for 52% of purchases, while the share of mortgages is lower at 32%. In the Tricity market, cash buyers have budgets PLN 67,000 higher on average than mortgage buyers, at PLN 607,000 compared with PLN 540,000.
The great trio of balance: Poznań, Wrocław and Kraków
In this group of markets, the so-called mortgage hill is clearly visible, but buyers taking out loans have equal or even higher budgets than cash investors. In Poznań, purchases using own capital dominate, accounting for 54% of all transactions. However, it is mortgage borrowers who dominate the higher price segments. Their average budget is PLN 585,000, which is PLN 100,000 more than that of buyers using savings.
A similar situation can be observed in Wrocław. In Kraków, meanwhile, the greatest balance prevails. The share of both payment methods is similar, with cash accounting for 42% and mortgages for 38%. The difference in average budgets is around PLN 15,000 in favour of mortgage borrowers.
Cheaper investment markets: Łódź and Katowice
In these agglomerations, property prices are low enough for mortgage use to remain relatively limited. In Katowice, for example, as many as 57% of all properties are bought for cash. This results from very low entry thresholds into the market, as total average budgets are around PLN 400,000 for both cash and mortgage buyers.
In Łódź, almost half of housing market transactions are financed with savings, with cash purchases accounting for 49%. Mortgages represent only 30% of transactions. The budgets of mortgage-financed and cash buyers in Łódź are almost identical, ranging from PLN 418,000 to PLN 428,000.
Secondary or primary market — that is the question
“Considering that 45% of housing loans granted today are aimed at the secondary market, and competition there takes place on terms dictated by cash, an individual seller of a second-hand property may see a cash buyer as the safer option. A mortgage always means time and the risk of a bank decision. For mortgage borrowers whose budgets are similar to those of cash buyers, the developer market may prove more favourable, as it accounts for 40% of loans. Developers have their own established procedures and are usually more willing to wait for banking formalities to be completed,” concludes Paweł Jarząbek, housing market expert at Otodom.
Source: Otodom / CEO.com.pl
