The October decision of the Monetary Policy Council (RPP) to implement a fourth consecutive interest rate cut is expected to provide yet another strong impulse for the Polish housing market. Expectations for renewed growth are well-founded, as each of the previous rate reductions has triggered a visible response on the demand side.
Housing Market Reacts Quickly to Rate Cuts
Following the first rate cut in May 2025, previously announced by the President of the National Bank of Poland (NBP), the number of housing transactions surprised analysts with its scale. The subsequent decisions in July and September, though less dramatic, also had a significant and rapid impact on the borrowing capacity of prospective buyers.
As a result, in September 2025, developers in Poland’s seven largest housing markets recorded the highest number of apartment sales in 22 months. Monthly sales volumes increased by 26% compared to preliminary August results (and by 36% after adjustments) and were 42% higher than in September 2024.
This sharp rise directly reflects the improving conditions in the mortgage market.
Mortgage Demand at a Two-Year High
Statistics from the Credit Information Bureau (BIK) for September show nearly 40,000 potential borrowers, translating to an average of over 1,800 loan inquiries per business day.
Current demand for mortgage loans is now four times higher than in September 2022, when access to financing was severely restricted. Moreover, as credit availability improves, buyers are opting for more expensive properties. The average value of a mortgage application rose 6.3% year-on-year, reaching over PLN 473,000 in September 2025.
October Decision Expands Access to Home Financing
The October rate cut further widens the pool of individuals eligible for mortgage loans. Easier access to financing, combined with a broad developer offering exceeding 60,000 units across the seven largest Polish cities, will provide buyers with greater freedom of choice — in both apartment size and location.
This environment could encourage many households that previously delayed purchase decisions to re-enter the market, accelerating recovery in housing activity.
Outlook for the Coming Months
Based on the effects of previous rate cuts, the most likely scenario for the final quarter of 2025 is a gradual but steady increase in housing sales. In major cities such as Warsaw and the Tri-City (Gdańsk, Gdynia, Sopot), growth may be even stronger.
A potential catalyst for further acceleration could be fears of rising home prices, driven by relatively low inventory levels on the primary market.
Overall, the combination of lower borrowing costs, improved credit availability, and stable supply sets the stage for a mild housing market rebound heading into 2026.
Source: CEO Magazine – “Impact of the October Interest Rate Cut on the Housing Market”
