Buying real estate is one of the safest forms of investment. The real estate market is relatively stable.
Buying real estate is one of the safest forms of investment. The real estate market is relatively stable. However, Poland's real estate market has slowed down in recent years. The highest inflation in years, high-interest rates, and an uncertain geopolitical situation have caused demand for real estate, mainly residential, to slow down significantly.
Residential market
The residential sector in Poland is still stable and safe for investing capital. However, rising inflation and housing prices have reduced the demand for residential real estate. The high NBP reference rate and unabated supply in the market have caused a decline in interest in housing loans. In August 2023, demand for mortgage loans noted a record drop.
Commercial market
Unlike residential real estate, the commercial market was dominated by the COVID-19 pandemic. The sectors most affected by the pandemic were office and retail real estate. The reduced trade and the shift to remote working caused significant losses in these sectors. The value of commercial real estate investments fell by more than 66 percent in 2020. The following year, the market slowly began to recover, and investment values increased by nearly 37 percent.
