The Polish real estate market remains in a state of anticipation, awaiting crucial investment impulses, according to Bartłomiej Zagrodnik, Managing Partner and CEO of Walter Herz.
“There is still a strong need and expectation for core and core-plus investors who could provide stability and support the development of low-risk projects. At the same time, we’re seeing significant interest in the purchase of residential development land in major cities. Each city has its own specific dynamics, so market analysis must be conducted at a local level, taking into account regional conditions,” Zagrodnik explains.
Developers Seek to Revitalize Older Buildings
Zagrodnik notes that developers are increasingly exploring the potential for repurposing older buildings. This trend stems from limited land availability and the growing importance of sustainability in real estate investment strategies.
“In practice, efforts in this area are often hindered by an unclear and inflexible legal environment. Industry players consistently point to the need for regulatory improvements, which would help boost supply—especially in the residential segment,” he says.
In the office sector, the market is largely waiting for a drop in financing costs. “This would allow investors from Western Europe and Asia to return to Poland. Current interest rate levels and macroeconomic uncertainty are significant barriers to increased capital activity in this area,” Zagrodnik adds.
High Demand for Residential Development Land
Emil Domeracki, Partner and Board Member at Land Development Advisory, Walter Herz, confirms a strong and consistent interest in well-located plots for residential development.
“Many developers and investment firms are ready to conclude transactions. Based on numerous discussions at the Real Estate Forum, we observe continued high demand for well-prepared residential plots. Investors are ready to act—provided there is a stable investment environment and efficient administrative procedures,” Domeracki notes.
However, he highlights that slow administrative processing, particularly for building permits, remains a major bottleneck for new projects.
“Streamlining the work of local administrative units would significantly improve operational fluidity for developers,” he adds.
Foreign Investors Focus on Safe, Urban Projects
Despite these challenges, foreign investors are stepping up their transactional activity in Poland.
“In response to complex administrative procedures and often inconsistent changes in zoning regulations, foreign capital is now leaning toward smaller, safer projects in Poland’s largest provincial cities,” says Domeracki.
“This is why local expertise and familiarity with regional markets are now critical in building trust and long-term investor relationships. We’re currently managing administrative processes for several new investors from the Baltic region, as well as from Turkey and Hungary. Their presence is proof that Poland remains an attractive investment destination.”
Market Outlook: Stability, Cash Buyers, and Demographic Pressures
According to Damian Karkosiński, Investment and Acquisition Specialist at Walter Herz, the strong interest in multi-family residential land is accompanied by a willingness to close transactions quickly.
“Despite cautious sentiment, expectations for further interest rate cuts could provide a significant boost to the housing market. Experts at the Forum believe home prices will remain stable, with a slight upward trend in the medium term,” he states.
A potential revival in the residential market could be driven by the return of private investors using cash to acquire property. Over the longer term, demographic factors—including demand structure and the housing needs of younger generations—will increasingly influence market performance.
Legislative changes and housing policy direction will also be crucial. For example, any attempt to impose a tax on the ownership of multiple properties could significantly slow investment activity in this segment.
Source:
ceo.com.pl – Investor Sentiment and Trends in the Polish Real Estate Market 2025
