The investment volume in the Polish real estate market reached €4.8 billion in 2024, with nearly half of that amount recorded in the last quarter alone. EY forecasts growing investor interest in high-end properties and the institutional rental sector (PRS) in 2025.
Strong Recovery in the Polish Real Estate Market
In 2024, the investment volume in the Polish real estate market increased by approximately 130% year-over-year, with the number of transactions rising by 46%. The investment rebound occurred mainly in the last quarter, with €2.3 billion invested. Following a slowdown in the second half of 2023, the real estate market is showing strong signs of recovery, according to EY’s latest edition of The Polish Real Estate Guide 2025.
The increase in the average transaction value reflects improved investor sentiment, particularly among European investors, who accounted for more than 50% of total transactions. “This confirms that Poland remains an attractive investment destination, perceived as a mature, stable, and developed market,” emphasizes Anna Kicińska, EY Partner and Leader of the Real Estate Market Group.
The office and retail sectors dominated transaction volumes, with major deals including the UNIT office building, Silesia City Center shopping mall, and Magnolia Park. The PRS (Private Rented Sector) market is also gaining traction, as evidenced by its increasing share of real estate transactions in 2024.
“We anticipate increased investor interest in high-quality real estate and PRS projects in 2025. The growing competition for premium properties suggests heightened activity in this segment, attracting investors seeking stable and long-term opportunities,” notes Anna Kicińska.
The Role of ESG in Investment Decisions
ESG (Environmental, Social, and Governance) compliance will become a key factor in real estate investment decisions. Zero-emission initiatives will be crucial not only for developers and investors but also for banks financing the real estate sector and end-users of commercial and residential spaces, according to EY experts.
Green Real Estate and Sustainability Trends
ESG standards are increasingly influencing corporate decision-making, with a focus on both environmental benefits and financial profitability.
“Investments in sustainable, energy-efficient real estate have become an integral part of the market, offering investors growth potential and asset resilience. Due diligence processes now emphasize energy efficiency, decarbonization, regulatory compliance, and environmental and social factors,” highlights Łukasz Jarzynka, EY Poland Partner and Leader of the Real Estate Market Audit Team.
One of the biggest challenges in the real estate sector is achieving carbon neutrality. However, in many cases, transitioning to carbon-neutral operations may not be financially viable. “In the long run, buildings that cannot meet these standards may become obsolete or face demolition,” warns EY’s report.
Regulatory and Tax Changes
The report also highlights upcoming changes in spatial planning regulations set for 2026, which will significantly impact the construction industry. Local governments will be required to adopt new general plans to make investment processes more transparent and efficient.
There is also a possibility of introducing Real Estate Investment Trusts (REITs), a type of investment company specializing in owning, managing, or financing income-generating properties. REITs would allow investors to participate in real estate portfolios while benefiting from preferential tax treatment.
“The Polish real estate market is undergoing a significant transformation, with a strong emphasis on sustainability and energy efficiency. At EY, we support our clients in adapting to these changes by providing comprehensive advisory services,” adds Anna Palczewska, Senior Manager, EY Real Estate Legal Team.
PropTech: The Future of Real Estate
Technological innovations are shaping the real estate market, with Property Technology (PropTech) playing a transformative role in the industry. PropTech integrates IT solutions at every stage of a property’s lifecycle. The global PropTech market was valued at $30.16 billion in 2022, with a projected annual growth rate of 16% between 2023 and 2032.
“PropTech is the future of real estate. Forecasts suggest that AI-powered PropTech solutions will revolutionize the commercial real estate sector, making ownership, leasing, and management processes more efficient and effective,” says Mikołaj Bokowy, Head of EY’s Real Estate Tax Group.
About the Report
The Polish Real Estate Guide 2025 is an annual analysis of the Polish real estate market, prepared by EY’s Real Estate Market Group experts. The report focuses on key market trends and forecasts across all real estate sectors, offering insights into tax, legal, and audit-related developments affecting market players. This year’s edition highlights sustainability, green transformation, and evolving industry standards, providing strategic guidance on priority areas and risks throughout the entire real estate investment cycle.
Source: CEO.com.pl
