Housing market in Poland – 2023

Less housing developments

According to preliminary data from the Central Statistical Office (GUS) for 2023, a decrease in the number of dwellings completed has been observed. A decline has also been seen in the number of dwellings for which planning permission has been granted and in the number of dwellings for which construction has begun.

Decline in sales of apartments

Contrary to hopes, the entry into force of the ‘Secure Credit’ programme to increase the availability of housing on the market, the GUS’ preliminary figures for 2023 show further declines in buying residential property as investment. Indeed, the first significant bump was already observed in 2022, as we wrote earlier.

Housing in Poland 2023 – statistics

Preliminary GUS analyses for 2023 show that 220.4 thousand dwellings were completed in 2023, 7.6% less than in 2022. This number includes dwellings completed by developers (136.5 thousand dwellings – 5.2% less than the previous year), as well as individual investors (79.6 thousand dwellings – down 12.3% compared to 2022).

In 2023, 241.1 thousand dwellings were licensed or notified for construction, 19.1% less than in the previous year, of which 161.8 thousand are permits obtained by developers (down 20.6% year-on-year) and 72.5 thousand permits obtained by individual investors (down 19%)

At the same time, the data show that the total floor area of dwellings completed was just under 20 million m2, 9.7 per cent less than a year ago.

Consequences of falling supply in the housing market

At this stage, it is difficult to judge whether the new credit programmes (Safer Credit or the planned 0 % Credit) will contribute to stopping the decline this year, as we have no way of verifying whether the absence of such programmes would have meant even less investment. Certainly, however, the credit facilities offered in parallel  with the observed downward trend, will cause a further lift in housing prices (due to the significant excess of demand over supply). For the time being, there are no prospects on the horizon for a significant reversal of the negative trend.