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press release press release

Residential sector as a major driver of the property market – part 1


The housing market is booming as supply is struggling to meet demand. The first three quarters of 2021 saw 157,000 building permits issued across Poland, up by 37% on the same period in the previous year. During the same period 128,000 homes were started, the highest number in the last 15 years and a 36% increase on the same time in 2020. There were also 97,000 completed homes, down by 4% on the first three quarters of 2020.


Poland’s six largest cities (Warsaw, Kraków, Wrocław, Tricity, Poznań, and Łódź) account for over 40% of the total housing pipeline, or approximately 90,000 homes, according to the statistics for 2020, in which there were just over 220,000 completions.


Source: Cushman & Wakefield, based on data from the Central Statistical Office (GUS)

As at the end of September 2021, the Polish PRS stock comprised approximately 6,500 units located in Warsaw and key regional cities; a third of that total is owned by Fundusz Mieszkań na Wynajem. Additionally, institutional investors contracted around 24,000 homes from developers, most of which are under construction or at the building permit stage and are therefore expected to be delivered to the market in the next two or three years, translating into around 8,000 completions annually. Institutional investors account for approximately 9% of the annual housing supply in Poland’s six largest cities.

Supply fails to keep pace with demand

In the largest cities there are many retail investors looking for build-to-rent apartments as secure income-producing assets or for apartments offering a hedge against inflation or retirement security in the future. In 2020, more than 40% of all homes were bought for investment: capital protection, rent or resale, and largely with cash. Given the notable increase in demand for investment homes in 2021, such apartments may have accounted for over 45% of all homes bought last year.

Source: Cushman & Wakefield, based on data from the NBP

to improve the standard of living

for investment

for rent and owner-occupancy

for owner-occupancy

for rent and resale with a profit

for resale with a profit


Homes for owner-occupancy are largely bought with a mortgage, most often covering approximately 80% of costs. Own contribution required by banks is a major barrier for some potential buyers as in the case of a home priced at PLN 500,000 it will amount to PLN 100,000.

The Polish government is currently introducing a solution as part of the Polish Deal (Polski Ład) to provide state guarantees of up to PLN 100,000 and up to 20% of all costs for creditworthy first home buyers who lack funds for own contribution. This will eliminate the barrier of the lack for funds for the contribution required to obtain a mortgage to buy or build a home to live in. The guaranteed home mortgage is not an instrument designed for low income households. In practice, this solution will require creditworthy individuals to obtain a mortgage for up to 100% of a home’s value. It is a social programme largely intended for families as 20% of the guaranteed amount may be remitted after the birth of a second child and 60% after the birth of a third 
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