Despite ongoing residential construction, Poland continues to face a significant housing shortage. Most new homes are being delivered by private residential developers, who build units for individual buyers. In 2023, developers were responsible for 62% of all new housing units, and in major cities, that number reached as high as 90%, according to the CBRE report “Poland Real Estate Market Outlook 2025.”
However, this segment is highly demand-dependent, making it sensitive to consumer sentiment and financial capacity — both of which are currently under pressure. On the other hand, the supply of new rental units owned by institutional investors may see significant growth, with projections suggesting an annual increase of up to 37%.
Demand Far Exceeds Supply
“Housing demand in Poland significantly exceeds the existing stock. Most new housing is delivered by developers, meaning availability depends largely on individual buyers’ access to financing and government support programs. High home prices and rental rates aren’t helping consumer sentiment either. The market is waiting for a positive catalyst — for example, a reduction in interest rates. Currently, mortgage interest rates in Poland are among the highest in Europe,” says Agnieszka Mikulska, residential market expert at CBRE.
The sharpest drop in housing demand and supply occurred between late 2022 and early 2023. While permitting activity declined across Europe, Poland experienced a more severe slowdown in new housing approvals.
Build-to-Rent Sector Offers Hope
A potential solution lies in the institutional rental market, which is steadily expanding. Currently, most rental properties in Poland are owned by individual landlords, but the Build-to-Rent (BTR) sector — involving purpose-built rental housing developed by institutional investors — has been growing rapidly.
As of December 2024, there were 23,400 BTR units in Poland’s largest cities — a 33% increase year-on-year. In 2025, the annual growth could reach 37%, based on investor plans.
More developers are considering creating rental housing platforms, either through joint ventures or by building their own portfolios. By the end of 2027, the number of such rental units in Poland could exceed 40,000.
Source: CEO.com.pl – Article
