Developers on prices, regulations, and the outlook for Poland’s housing market
How quickly have investment land prices risen in recent years? How have residential construction costs changed since 2020? What impact have building regulations had on apartment prices? How much more expensive would a square meter be today if lawmakers had not withdrawn from imposing a rigid parking standard for new developments? These are the questions posed in a survey prepared by the real estate portal dompress.pl.
Joanna Chojecka, Sales and Marketing Director for Warsaw and Wrocław at Robyg Group
In recent years, Poland’s real estate market has undergone dynamic changes, both in terms of housing prices and construction costs. Since 2020, average apartment prices on the primary market have increased by around 15%, while in major cities such as Warsaw, Kraków, and Wrocław, prices surged as much as 30% between 2022 and 2024.
Rising construction costs were a major driver, particularly in 2021–2023, when prices of building materials and wages in the sector jumped sharply. In 2024 alone, the cost of building one square meter of usable space rose by more than 18% year-on-year.
At the same time, investment land prices also increased. In major urban areas, land has appreciated by 20–30% in recent years, and in some locations even doubled. The share of land in the total price of an apartment can now reach as high as 24%.
Another factor influencing costs is new building regulations. The introduction of a requirement for 1.5 parking spaces per apartment significantly raised project costs, in some cases by 5–10%. With the average apartment price at around 15,000 PLN per square meter, this meant an additional 750–1,500 PLN per square meter for buyers. Without the repeal of the parking standard, homes would clearly be more expensive today.
All of these elements—rising material and labor costs, higher land prices, and administrative regulations—translate into steadily increasing apartment prices and limit the availability of new housing investments on the market.
Andrzej Biedronka-Tetla, CFO and Management Board Member at Atal
Over the past five years, total construction costs—taking all components into account—have roughly doubled. The key factors were rising material and labor prices, which have now stabilized. These increases resulted from high inflation and wage growth, as well as new regulations and standards, which made production more expensive and, consequently, apartments pricier.
Land has also grown proportionally more expensive, remaining a crucial element of developers’ cost calculations.
Tomasz Kaleta, Managing Director for Sales and Marketing at Develia
In recent years, the cost of building housing in Poland has steadily increased, mainly due to inflation, rising land prices, higher material costs, and labor expenses. Although the pace of growth is now slowing, the key factors—high prices for plots and raw materials—remain in place.
According to data from Statistics Poland (GUS), in Q2 2025, the average cost of building one square meter of a new residential building stood at 6,973 PLN. This was less than at the beginning of the year but still higher than in the same period the year before.
Given the high costs and limited land supply, efficient investment management is essential. Two years ago, Develia launched Develia Construction, which now handles 20–25% of projects, improving cost control and construction quality.
For developers, regulatory predictability is critical for responsible planning. The proposal to impose 1.5 parking spaces per apartment would have significantly raised costs, especially in city centers where land and underground space are scarce, and would have reduced the number of available units. Ultimately, the government abandoned the measure, leaving decisions to local authorities. This provides greater flexibility and allows investments to be tailored to local conditions.
Marek Straszak, Regional Construction Manager at Matexi Polska
In the past five years, construction costs have faced two major disruptions—first during the pandemic, and then after the outbreak of the war in Ukraine. In both cases, disrupted supply chains and labor shortages drove costs sharply higher. Between 2020 and mid-2025, housing construction costs rose by about 50%.
Legal regulations have also contributed. Energy efficiency standards require increasingly advanced solutions: higher-quality windows, better insulation, and heat recovery ventilation systems. From January 2026, a new regulation on temporary shelter spaces will come into force. This will require reinforcement of underground structures, meaning higher consumption of steel and concrete, and further cost increases.
The withdrawal of the parking standard was crucial for the financial viability of many projects, especially in central locations with small plots. A requirement for 1.5 parking spaces per apartment would often have forced developers to build up to three levels of underground parking, raising project costs by 10–15% and pushing apartment prices even higher.
Witold Kikolski, Management Board Member at MS Waryński Development S.A.
In recent years, housing construction costs have fluctuated considerably. In 2021–2022, material prices rose by over 30% annually, while in 2023 the market slowed. Today, stabilization is visible, with slight declines in many categories. However, labor costs continue to grow by 8–10% per year, pushing overall project expenses up by around 3% annually, according to GUS.
At the same time, land prices in large cities remain high—especially in Warsaw, where demand for good locations is strong. The gap in development costs between projects in Warsaw and, for example, Katowice can reach several percentage points.
Legal changes have also added to costs. The new developers’ act and stricter energy efficiency standards have raised expenses by a few percent. But the greatest burden came from the parking standard, which until recently forced 1.5 spaces per apartment. This required additional underground levels, significantly increasing total project costs. Developers welcomed the August 2025 decision to abolish the rigid standard and delegate the matter to municipalities. This provides greater design flexibility and allows for more reasonable pricing, particularly in well-connected areas.
Piotr Dobrzyński, Head of Operations and Technical at BPI Real Estate Poland – Builder
Over the past five years, residential construction costs, and thus project implementation costs, have risen by about 30–50% due to inflation. Labor costs and material production costs increased as energy prices soared. Not all materials rose equally: steel, polystyrene, mineral wool, and timber saw speculative spikes of up to 100% during the pandemic and early war period. Today, material prices are relatively low due to reduced demand, but overall costs are still around 40% higher than in 2020.
As for new regulations like the parking standard, their impact is less noticeable given weaker housing demand. However, higher parking requirements increase the building’s total floor area—non-sellable space—raising overall project costs. With a fixed level of usable floor space, this translates into higher prices per square meter. Depending on the project, the increase may be several or even a dozen percent. In some cases, requiring another underground level could make a project unprofitable. Importantly, the sale price of a parking space usually does not cover its construction cost.
Renata McCabe–Kudla, Country Manager at Grupo Lar Polska
Construction costs in recent years have risen sharply due to inflation and higher labor expenses. With a shortage of investment land, prices continue to climb each year. Since 2020, the cost increases have been greater than in previous years, driven by high inflation. New building regulations and growing expectations from municipalities regarding infrastructure provided by developers also significantly raise apartment prices.
Damian Tomasik, CEO of Alter Investment
Over the past five years, construction costs have consistently increased—both materials and labor. The most dynamic growth came in 2021–2022, when steel, concrete, and timber prices rose by several dozen percent year-on-year. Since 2023, the pace of increases has slowed, but costs remain higher than pre-pandemic levels.
Investment land has also grown more expensive, with prices in large cities up 40–50% since 2020. New regulations, such as energy efficiency standards and environmental requirements, raise entry costs for developers, naturally driving up housing prices. If mandatory parking standards had remained in place, apartments in many projects would be 10–15% more expensive.
Jakub Serek, Cost Planning Director at Archicom
Construction costs in recent years have been highly dynamic, influenced by multiple factors. Since 2020, both material and labor costs rose significantly, especially during the pandemic and subsequent inflation spikes. Currently, the situation is more stable, with annual cost growth roughly in line with inflation, enabling more effective project planning.
However, costs are not driven by a single factor. Beyond materials and wages, commitments to municipalities—such as building roads, recreational areas, or public facilities near new estates—play an important role.
Changes in building regulations, while often necessary for quality and safety, also raise project costs. A good example is the upcoming requirement for temporary shelter spaces, effective 2026. Its impact is still difficult to quantify, but it will likely add to construction expenses.
Ultimately, the final price of an apartment reflects many overlapping factors: land, labor, materials, and regulatory requirements.
Source: CEO.com.pl
