There are many indications that the housing market is already showing initial effects of the interest rate reductions. According to Otodom data, by May 15 the average daily sales of new apartments across seven major markets reached their highest level in a year. Reservations returned to levels seen at the end of 2023, and the increase in activity among people looking for their own home reached as much as 20% year-on-year. Experts emphasize that this could signal a market revival in the coming months.
Buyers on the Starting Blocks
The Monetary Policy Council’s decision on May 7 to cut interest rates by 0.50 percentage points was the first such move since October 2023 and provided a long-awaited boost to the real estate market. Even before the official announcement, buyers were testing their creditworthiness, anticipating better financing conditions. According to BIK data, in April 2025 alone, 35,600 people applied for housing loans — an increase of over 10% year-on-year. The average requested loan amount also rose to PLN 458,200 (+5.9% y/y).
Meanwhile, a survey conducted by Otodom found that 13% of buyers on the purchase path declared that the rate cut would be a signal for them to finalize a transaction. This group could generate up to 5,000 additional deals annually under the right conditions, pushing total sales in the largest markets over 42,000 apartments and surpassing the entire 2024 sales figure of 37,000.
Interestingly, for this group only “a larger choice of cheaper apartments” and “high discounts” were more important. Thus, it is no surprise that the decision to lower interest rates motivated prospective buyers to increase their activity.
Rapid Market Response
Demand reacted to the rate cuts shortly after their announcement. In the first two weeks of May, the number of apartment reservations in the seven largest Polish markets rose sharply. The average daily reservation count reached 115, compared to 72 in April and 67 in March. This is the highest level since the start of the year and already nearly 60% higher than April’s figures halfway through the month. Moreover, although sales have not accelerated as dynamically yet, they are also growing. By May 15, average daily developer sales in Warsaw, Kraków, Łódź, Poznań, Katowice, the Tri-City, and Wrocław stood at 137. For comparison: from February to April the average was around 126 transactions per day, and in January 108.
“The number of reservations up to mid-month reflects both the interest rate cut and the appearance of new developer offers that refreshed customer interest. Reservations themselves, although not synonymous with sales, can be a precursor to change and signal a demand rebound. If the current pace continues, May sales could be noticeably higher than in previous months. It is also possible that the coming months will bring good or even better results, especially if the rate cut proves to be the start of a longer-term trend,” comments Katarzyna Kuniewicz, Market Research Director at Otodom.
At the same time, Otodom recorded a significant increase in user activity. In the week directly following the rate cut announcement, the portal’s visits reached 9 million (a rise of 14% month-on-month and 16% year-on-year), while responses to listings increased to 96,000 — 24% more than the previous month. The following week maintained a high level, suggesting that the boost was not just temporary.
One Decision Is Not Enough
Experts caution against excessive optimism. A one-time interest rate cut will not solve the market’s structural problems, such as high property prices or still limited mortgage availability. They point out that a clear sales revival of 15–20% may only occur after a cumulative reduction of 100–150 basis points.
“The May interest rate cut is not a cure-all for the housing market’s woes, but it undoubtedly provides the first, long-awaited stimulus. The increased interest in housing seen in Otodom data for May is a sign that credit clients are returning to the market. If further demand-supporting measures emerge, including those beyond monetary policy, we could enter a phase of gradually rebuilding purchasing activity,” assesses Katarzyna Kuniewicz.
Katarzyna Kuniewicz
Source: ceo.com.pl
