Poland: Developers weigh in on new law requiring price disclosure for flats under construction

Tomasz Kaleta, managing director of sales and marketing at Develia
We are not opposed to the idea of transparency in apartment prices; greater consumer awareness of this issue may increase market efficiency. However, we have doubts about the pace of introducing new regulations and the lack of broader consultation with the industry. We are currently preparing to implement the new requirements.

When analysing the issue of price transparency, it is worth remembering that the price of a specific flat within a single development depends on several factors, such as its size, floor, orientation and the size of the balcony. As a result, the price per square metre of a flat can vary by as much as PLN 6,000 within the same development.

Mateusz Bromboszcz, Vice-President of the Management Board of Atal
Atal is one of the few property developers that have been openly presenting their apartment prices and communicating them transparently for many years. On our website, customers can find prices for individual flats and their turnkey finishes, as well as additional spaces such as storage rooms, parking spaces, etc. We understand that this is what buyers expect when making an important life decision based on numerous offers, which can be time-consuming to review.

However, price is not everything. When comparing offers, other important parameters should be taken into account, such as the quality and standard of the estate, the class of finish of the common areas, and for the flats themselves, e.g. their location in relation to the cardinal directions, the floor on which they are located, or the size of the balcony or garden.

The introduction of an obligation to publish offer prices on websites will not make flats cheaper. Although it will make it slightly easier for customers to obtain information, this change will be neutral for the market. It is not the way in which an offer is presented that determines the offer price of a flat, but the costs of its construction, including the price of land and other important components of development projects.

When it comes to reporting and sanctioning companies, we are in favour of common sense and not duplicating regulations that already impose certain information obligations. Furthermore, it is important that all provisions of the act are unambiguous in their interpretation and do not raise doubts among any market participants.

Mariusz Gajżewski, Head of Sales, Marketing and Communication, BPI Real Estate Poland
Price transparency increases consumer confidence and reduces unfair practices by market participants that mislead customers. The introduction of sanctions for providing incomplete information to buyers may significantly affect market practices, as developers will be forced to present their offers more accurately. This may also reduce unfair competition.

On the other hand, care should be taken to ensure that the regulations are precise and unambiguous in order to avoid excessive bureaucracy and uncertainty of interpretation on the part of developers. In the broader perspective, I believe that the new regulations may have a positive impact on the professionalisation of the real estate market and increase transparency.

Katarzyna Mirota, Head of Sales & Marketing, Matexi Polska
The disclosure of apartment prices is a step towards a transparent real estate market that supports customers in making informed and thoughtful purchasing decisions. It gives them easier access to information about current offers, the ability to track price trends and compare available options. Price transparency eliminates uncertainty, reduces the time needed to analyse the market and allows for faster decision-making. For developers, this means a more efficient sales process. They are contacted by customers who have already familiarised themselves with the terms and conditions of the offer and have given their preliminary approval. This, in turn, speeds up and facilitates the finalisation of transactions.

Since the beginning of our operations in Poland, we have been guided by the principle of full transparency towards our customers. The prices of apartments in our investments are publicly available, both on our websites and in information materials. We believe that this is the foundation of lasting, positive relationships with buyers and a standard that should become the norm throughout the development industry.

Marcin Malka, President of the Management Board of Real Management S.A.
I think that the new regulations will have a greater impact on the market for popular flats. The luxury property market is more individualised, so the change in regulations should not significantly affect its functioning. On the other hand, our clients value discretion, so we are not enthusiastic about such solutions in the premium segment. In the case of apartments in the popular segment, these regulations may lead to greater market transparency, which will result in even greater competition.

Wojciech Wilhelm Zhang-Czabanowski, President of the Management Board of Waryński S.A. Holding Group
The proposed amendment to the Development Act, which aims to oblige development companies to publish full prices of flats in the general section of the information prospectus on their websites, is a step towards increasing the transparency of the real estate market. Currently, according to market analyses, prices are not published in as many as 60-80% of investments, which makes it difficult for consumers to compare offers and make informed purchasing decisions.

Full price transparency may translate into greater customer confidence, increased competition among developers and more professional relations with buyers. Potential customers will gain a real tool for preliminary assessment of offers without having to contact the sales office each time.

From an operational perspective, the amendment may change the structure of enquiries directed to developers. Although the overall number of enquiries may decrease slightly, enquiries asking only about the price, i.e. those from people who are not yet decided on a specific investment, will be naturally eliminated from the market. In return, a larger percentage of contacts will come from customers who are cost-conscious and genuinely interested in other aspects of the offer, such as location, apartment layout, standard of finish and availability of amenities. For sales departments, this means greater efficiency in working with leads and better tailoring of communication to customer needs.

The Waryński Group supports the direction of changes aimed at increasing the transparency of the housing market. We are open to further industry dialogue that will allow us to develop solutions that are beneficial to both consumers and professional market participants.

Andrzej Gutowski, Sales Director, Ronson Development
We welcome the proposed amendment to the act. We have supported this initiative from the outset and believe that greater transparency in the presentation of property prices is a step in the right direction, both for customers and for the market as a whole.

The proposed changes should help to tidy up the market and increase its credibility. Today, customers often have to wait a long time for offers and details of costs. The new regulations will change this, giving them easier and faster access to key information. From our perspective, this is a very positive change, which in the long term will have a positive effect, increase trust in developers and, at the same time, fair competition will stimulate further market development.

Joanna Chojecka, Sales and Marketing Director for Warsaw and Wrocław at Grupa Robyg
We are prepared for the new requirements under the amendment to the Act, which imposes an obligation to disclose the prices of all flats sold on the website. We have been operating in a transparent and honest manner for years. For companies such as Robyg, which have been focusing on the quality of relations and transparency of the sales process for years, the new regulations do not mean a revolution. We already publish detailed information about our flats and clearly communicate additional costs, from parking spaces to maintenance fees. Our goal is not only to sell, but to build lasting trust and a good customer experience.
Damian Tomasik, President of the Management Board of Alter Investment

The law, which requires developers to disclose all apartment prices on their websites and in their prospectuses, is a step towards greater market transparency. At Alter Investment, we fully support measures aimed at standardising and organising the information provided to customers. Consistency of communication and transparency of rules are key to building trust in the entire industry.

This is also in line with the position of the Polish Association of Developers, of which we are a member, which emphasises that the primary market should operate according to clear and understandable rules, eliminating misunderstandings between developers and customers. The introduction of full price transparency and the requirement to provide precise information on additional costs may contribute to increasing consumer awareness and help them make informed purchasing decisions.

At the same time, we would like to point out that it will be crucial to clarify the regulations and standardise the presentation of prices and costs in order to ensure the comparability of offers and avoid introducing unnecessary administrative barriers for developers. If the new regulations are introduced in a well-thought-out manner, the market can only benefit, both in terms of transparency and professional customer service.

Source: dompress.pl

Zeitgeist expands partnership with REICO for new residential project in Prague’s Britská čtvrť

Zeitgeist Asset Management is strengthening its collaboration with REICO Nemovitostní, the real estate fund managed by REICO Erste Asset Management, by taking over the complete management of another residential rental project. The latest cooperation involves two newly constructed apartment buildings in the Britská čtvrť neighborhood of Prague’s Stodůlky district, currently being developed by FINEP. Zeitgeist will oversee project management, leasing, and ongoing property management, with construction already underway and completion anticipated in the third quarter of 2027.

Peter Noack, co-founder and CEO of Zeitgeist Asset Management, expressed enthusiasm for the ongoing partnership, emphasizing that the Britská čtvrť project underscores the significant role of rental housing in sustainable urban development. “We are delighted that REICO is continuing to build its rental portfolio with us. The project in the British Quarter is proof that rental housing has a firm place in long-term sustainable urban development. Our task is to ensure that the entire process runs smoothly and with an emphasis on quality: from project management and lease setup to day-to-day operations,” Noack said. He noted that the cooperation builds on Zeitgeist’s recent involvement in the Residence Opatov project in Prague 4.

Designed by the A69 architectural studio, the Britská čtvrť development is situated adjacent to the Stodůlky metro station and is part of the extensive Západní Město urban development initiative that FINEP has been pursuing since 2007. The rental housing project comprises two buildings, four and six stories high, featuring a total of 219 apartments ranging from one-room to five-room layouts. The basement levels will provide 207 parking spaces and 112 storage rooms, with some apartments offered fully equipped for future tenants.

Michal Nečas, managing director of Zeitgeist Asset Management, highlighted the strategic appeal of the development. “The British Quarter has long been a prime example of functional urban planning, offering not only high-quality residential development, but also public spaces, shops, services, and excellent transport links. It is these parameters that make the project an attractive choice for a wide range of potential tenants,” he said.

Deka Immobilien acquires ESG-certified office building in central Dublin

Deka Immobilien has acquired a prime office building in central Dublin for its open-ended real estate fund, WestInvest InterSelect. The property, located at 20 Kildare Street in the heart of the city’s business district, marks a strategic addition to the fund’s portfolio, reinforcing its focus on ESG-compliant investments. The seller is an institutional investor, and the purchase price has not been disclosed.

Situated near key landmarks including St. Stephen’s Green, the Shelbourne Hotel, and Leinster House, the property benefits from excellent public transport access. Completed in 2022, the six-storey office building combines contemporary design with historical elements, incorporating four listed Georgian townhouses. It offers approximately 6,000 sqm of lettable office space and features sixth-floor terraces overlooking the park.

The property is fully leased on a long-term basis, with global law firm Dentons as the anchor tenant. Amenities include an underground car park with electric vehicle charging stations, bicycle storage, and high-quality changing and shower facilities. Operated entirely on electricity without the use of fossil fuels, the building holds multiple certifications, including LEED Gold, WELL Core Gold, Wired Score Platinum, and BER A3. When powered by green electricity, it could become the first carbon-neutral office asset in Deka Immobilien’s Irish portfolio.

This acquisition enhances the diversification of the WestInvest InterSelect fund and supports Deka Immobilien’s international investment strategy focused on high-quality, sustainable assets. Ireland’s strong economic fundamentals, including GDP growth consistently outperforming the eurozone average, make it an attractive market for continued investment.

Eurozone Economic Outlook Q3 2025: Gradual recovery amid trade uncertainty and policy shifts

The economic outlook for the eurozone in the third quarter of 2025 suggests resilience despite external pressures, particularly in trade. S&P Global Ratings expects the recovery in domestic demand to continue, driven by strong private sector balance sheets, supportive fiscal policies, and a robust labor market. While U.S. tariffs and global geopolitical tensions present downside risks, they have not significantly derailed internal economic momentum.

Eurozone growth remains modest at 0.8% for 2025, with projections of 1.1% in 2026 and 1.4% in 2027. While external trade volatility has affected short-term output, domestic demand, especially in household and business investment, has strengthened. Business investment growth surprised on the upside in early 2025, contributing significantly to GDP expansion. This early rebound has led to adjusted forecasts, with higher investment growth in 2025 and slightly lower projections for 2026.

Tariff-related concerns have been revised, with assumptions of higher U.S. import duties on European steel and aluminum now at 50%, potentially impacting Italy and Germany more acutely. Nevertheless, the overall impact is still within S&P’s base-case scenario. Domestic inflation remains subdued due to a stronger euro and lower energy prices. Core inflation is expected to remain near the ECB’s 2% target, reducing the likelihood of additional rate cuts unless significant external shocks occur.

Labor market dynamics remain a key strength of the eurozone. Employment has reached new highs, with a record low unemployment rate of 6.2%. Job creation has been especially robust in the ICT, professional services, health, and education sectors, though manufacturing continues to decline. Older workers and women make up a growing share of employment gains.

Public spending plans, particularly in infrastructure and defense, are expected to contribute to economic acceleration post-2025. Germany and the broader EU have outlined significant but still largely undefined investment packages. NATO’s proposed increase in defense spending and EU initiatives like the ReArm program could further bolster medium-term demand and support industrial output.

The inflation outlook remains uncertain. While current indicators point to continued moderation—thanks to a stronger euro and lower oil prices—future inflationary pressures could emerge from fiscal stimulus, labor market tightness, or energy market disruptions. S&P estimates that if oil prices exceed assumptions by 10%, inflation could rise to 2.0% in 2026.

The ECB has signaled a pause in its rate-cutting cycle, maintaining the deposit rate at 2.0%. This reflects stable core inflation and improving domestic demand. Markets anticipate little likelihood of further cuts in the near term, with potential rate hikes possible in 2027 if inflation pressures intensify. Quantitative tightening continues, reducing excess liquidity and steepening the yield curve.

Trade negotiations between the EU and the U.S. remain a critical factor. S&P’s baseline scenario includes moderate U.S. tariffs, but more aggressive measures could lower eurozone GDP growth by up to 1.1%. The impact varies by country, with Germany and Italy more exposed due to their export compositions. Proposed EU countertariffs could marginally increase inflation, though household savings are expected to cushion the blow to consumer demand.

Overall, the eurozone enters the second half of 2025 with steady internal growth, a strong labor market, and moderating inflation, though external uncertainties, particularly in trade policy and geopolitical developments, continue to pose risks to the outlook.

Source: S&P Global Ratings

PZU Group renews lease at Konstruktorska Business Center in Warsaw for 10 years

Three companies from the PZU Group have extended their lease at the Konstruktorska Business Center in Warsaw for an additional ten years. The renewed lease covers over 6,500 m² of office space within the property, which is owned by Golden Star Group.

The companies continuing their tenancy include Powszechny Zakład Ubezpieczeń S.A., Powszechny Zakład Ubezpieczeń na Życie S.A., and PZU Centrum Operacji S.A. These entities have been based at the Mokotów district office complex since 2015. The lease extension was finalized with legal representation for the landlord provided by Marcin Rogala of the SRC Law Firm.

Konstruktorska Business Center is a modern Class A office building offering 49,500 m² of leasable space. It features large, flexible floorplates of 7,000 m², four entrances, two internal courtyards with green spaces, 1,050 underground parking spaces, and dedicated facilities for cyclists. The building holds a BREEAM “Very Good” certification for energy efficiency and is accessible by both public transport and private vehicles. It is located approximately 15 minutes from Warsaw’s city centre and 10 minutes from Warsaw Chopin Airport.

The building hosts a range of tenants including Lionbridge, Carrier, Procter & Gamble, Emerson Process Management, and MoneyGram. According to Golden Star Estate, the long-term lease renewal reflects the functionality of the office space and the ongoing relationship with PZU Group.

Poland’s timber industry at a crossroads: Crisis, reform, and the struggle for survival

Once a powerhouse of European wood processing and a key contributor to Poland’s exports, the domestic timber industry now finds itself in one of its most severe downturns in decades. The sector—which includes sawmills, wood panel producers, packaging firms, furniture manufacturers, and paper mills—is grappling with falling production, shrinking exports, tight margins, rising debt, and a wave of bankruptcies.

The government’s “Wood Industry Package,” announced in 2024 as a response to growing distress in the sector, is only beginning to show limited effects. Meanwhile, industry players continue to face mounting pressure from rising operating costs, restricted access to domestic raw materials, and an influx of low-cost imports, particularly from Ukraine. Financial institutions have become increasingly cautious, compounding liquidity issues across the sector.

From Export Leader to Industry in Crisis

The downturn is rooted in a sharp imbalance between rising costs and waning demand. Following a brief pandemic-era boom, the wood sector was hit hard by a slowdown in international markets, especially Germany and Western Europe. Export orders dropped across the board—from furniture and wooden packaging to pulp and sawn timber—while domestic costs surged for energy, labour, materials, and logistics. Exporters are also struggling with the effects of a strong Polish zloty, which has made local products less competitive abroad.

The crisis is widespread. Trade bodies warn that if the current trend continues, up to 50,000 jobs could be lost and financial losses could top PLN 12 billion.

Imports and Raw Material Shortages Deepen the Blow

Adding to the challenge is a flood of low-cost wood and wood-based components from Ukraine, made possible by the EU’s removal of trade barriers in response to the war. Polish producers—particularly in the pallet and wooden packaging sectors—are finding it increasingly difficult to compete with these cheaper imports.

At the same time, domestic timber supplies have tightened significantly. A 2024 moratorium restricted logging on approximately 20% of Poland’s forested area, particularly in environmentally sensitive zones like the Białowieża Forest and the Carpathians. In 2025, timber supply from State Forests is estimated to be down by 2 million cubic meters compared to the previous year.

Government Measures: Slow Impact, Mixed Results

Under growing pressure, the government introduced a nine-point “Wood Industry Package” in 2024 aimed at supporting local processors and limiting unprocessed wood exports. Key actions included prioritising domestic customers, incentivising companies that conduct deeper processing, and curbing timber exports to non-EU destinations.

While officials reported a 39% drop in timber exports to China, overall exports actually rose 26% in 2024, calling into question the package’s real impact. Industry leaders also welcomed a 2025 regulation that removed certain wood assortments from biomass classification, a long-demanded step to prevent valuable raw material from being burned for energy.

Efforts to limit Ukrainian imports began in March 2025 when customs authorities started blocking wood shipments at the border. The sector is now calling on Brussels to introduce anti-dumping duties, similar to recent sanctions against Chinese plywood. However, political sensitivities regarding Ukraine have delayed any EU-wide consensus.

Signs of Stabilisation—But Only in Some Segments

Since the beginning of 2025, a revised wood sales framework favouring local processing has helped lift parts of the sector. The Central Statistical Office reported a 13.3% year-on-year increase in sales of wood and wood-based products in March, with cumulative growth of 6.9% in Q1. May data showed continued momentum, with sales rising 7.6%.

Some medium-sized sawmills and component manufacturers are seeing modest improvements. However, the furniture segment—once a flagship of Polish manufacturing—remains under pressure. Furniture exports fell 6% in 2024 while imports rose 10%. Although there was a small production boost of 8.7% in May 2025, weak demand from key markets like Germany continues to drag on the sector.

There is some optimism in the domestic market. Retail sales in the “furniture, electronics, and household appliances” category rose 13.2% year-on-year in April, with cumulative growth of 12.5% in the first four months. Analysts suggest that improving consumer sentiment and lower inflation may support recovery, but a full rebound is still distant.

Financial Fragility and Rising Insolvency

Despite modest production gains, the financial health of timber companies remains fragile. Debt levels have surged: wood processing firms now owe over PLN 100 million—up PLN 30 million in less than three years. Furniture manufacturers are in even worse shape, with total debt reaching PLN 130 million, a 20% increase year-on-year.

According to Coface, 1,969 companies declared insolvency in Q1 2025, a 20% rise compared to the same period last year. The timber industry has been among the hardest hit, with insolvencies in the sector rising by 167% year-on-year. In Poland’s eastern regions—where raw material restrictions are most severe—up to 22% of companies have shut down.

Limited Credit Access and the Turn to Alternative Financing

As banks tighten lending criteria, many companies face a credit crunch. Financial institutions are treating timber companies as high-risk, drawing parallels with the troubled construction sector of previous years. Entrepreneurs report increasing difficulty accessing loans, with banks demanding additional collateral, shortening repayment terms, or declining applications altogether. Even though interest rates were cut in May, debt servicing costs remain burdensome.

In response, many companies are turning to factoring as a lifeline. This alternative financing method allows firms to access cash tied up in unpaid invoices, helping them manage liquidity and safeguard against delayed payments. Factoring is particularly popular among smaller sawmills and furniture producers, where even minor delays can pose major operational risks.

Outlook: A Sector on Edge, Searching for Stability

As mid-2025 approaches, Poland’s timber industry is caught between cautious hope and continued uncertainty. While government reforms and market adjustments may offer the first steps toward recovery, many companies are still battling serious financial and operational headwinds. Without stronger systemic support—such as stabilisation funds, credit guarantees, or targeted subsidies—the industry risks permanent decline.

If the second half of the year brings improved access to raw materials, financial relief, and a rebound in demand, the sector could begin a slow path to recovery. If not, thousands of firms may fail, and Poland could lose a critical pillar of its industrial economy.

Author: Dominik Łada, Business Finance Manager at Bibby Financial Services

Prague 1 demands immediate action on shared E-Scooter ban in city centre

Prague 1 has reiterated its demand for a zone-based ban on shared electric scooters, criticising the Prague City Council for rejecting a regulatory proposal intended to address long-standing concerns over pedestrian safety and public order. The district leadership expressed frustration with what it describes as the city’s continued inaction, despite repeated warnings and a clear proposal submitted earlier this year.

In April 2025, Prague 1 officially submitted a draft regulation that would ban shared e-scooters in designated zones of the historic city centre. The proposal, prepared by Councillor Josef Ludvíček (ODS) and unanimously approved by the Prague 1 City Council, is based on existing road traffic laws and designed to be easily enforceable. The regulation would rely on traffic signage and allow for exceptions on a transparent, case-by-case basis—a model previously used to regulate Segways.

“Our aim is to protect the safety of pedestrians and preserve the dignity of public space in central Prague. We call on the city to give this proposal the attention it deserves,” said Vojtěch Ryvola, Prague 1’s Councillor for Transport (GEN).

Mayor Terezie Radoměřská (TOP 09) expressed regret that the city council failed to adopt the proposal ahead of the summer tourist season, when e-scooter misuse tends to peak. “The situation is serious. Scooters frequently endanger pedestrians and obstruct access for seniors, parents with strollers, and people with reduced mobility. Prague 1 is offering a ready-to-implement, functional solution. Delaying action only worsens the problem,” she said.

Prague 1 is urging the city’s leadership to stop postponing the issue and formally discuss its proposed regulation. The district is also calling on other municipal districts to join the initiative in order to promote a safer and more accessible urban environment for all residents and visitors.

Three Prague shopping centres temporarily closed following bomb threat

Three shopping centres in Prague have been closed this morning following a bomb threat, according to Prague police spokesman Jan Rybanský. The closures were prompted by an email warning about the possible placement of explosives.

Police have launched a full pyrotechnic search at the affected sites, which include shopping centres located at Republic Square, Chodov, and Černý Most. Dozens of officers are involved in the operations. Authorities have not yet indicated how long the centres will remain closed.

This incident follows a similar threat earlier this year, when the Municipal House was evacuated in February. On that occasion, the shopping centre at Republic Square was closed for approximately seven hours.

Source: CTK

Seasonal work extends beyond summer as autumn peaks in e-commerce, logistics and transport

While seasonal employment is traditionally associated with the summer months, demand for temporary workers also surges during other periods of the year—most notably in autumn. According to analysis by Personnel Service, employment in the e-commerce sector can double between September and November due to preparations for events like Black Friday and the Christmas shopping season. This shift reflects the sector’s rapid growth, with the Polish e-commerce market projected to reach nearly PLN 200 billion by 2028, according to a report by Strategy&.

This rising activity also drives demand for temporary staff across logistics and transport. The Personnel Service “Barometer of the Polish Labour Market” found that more than half of employers in logistics, e-commerce, and transport are seeking additional workers. In the transport, shipping, and logistics (TSL) sector alone, 43% of companies reported plans to increase employment in 2025.

The trend underscores how seasonality is becoming more sector-specific rather than tied to the traditional holiday calendar. In e-commerce and warehousing, autumn is now the period with the highest seasonal staffing needs. The Strategy& report highlights how online purchases rose by an average of 5% annually from 2020 to 2023, while the average transaction value increased from PLN 233 to PLN 304. As a result, the number of temporary workers in e-commerce has grown by 55% in the past four years, excluding seasonal peaks.

This growth in e-commerce has a direct impact on warehouse demand. CBRE reported that by the end of Q1 2025, Poland’s logistics and warehouse space reached 34.6 million sqm—up 7.6% year-on-year. Demand rose 22% compared to the same period in 2024, and an additional 1.37 million sqm is under development. However, expanding infrastructure brings new staffing challenges. Larger facilities require more workers, especially during peak operational periods.

Despite a slowdown in the transport sector in 2023, structural staff shortages persist. The SpotData and Transport and Logistics Employers’ Association report on “Road Transport in Poland 2024/2025” notes that the vacancy rate in TSL is 44% higher than the national average. In some segments, such as truck driving, vacancy rates in Poland reached 7% in 2023—well above the EU average of 2.6%.

These staffing gaps are influenced not only by economic factors but also by demographic and cultural shifts. One-third of Europe’s truck drivers are over the age of 55, and younger workers show less interest in jobs involving long-distance travel. With immigration flows slowing and younger generations less inclined toward mobile work, the labour pool continues to shrink. While automation and robotics offer some relief, many companies remain skeptical that technology alone can offset workforce shortages. In fact, half of the companies surveyed by Personnel Service do not expect automation to reduce employment needs. Instead, 43% of TSL businesses plan to expand their workforce in 2025, with 57% preparing for investment.

Labour market expert and Personnel Service founder Krzysztof Inglot notes that temporary and seasonal work is gaining strategic importance across multiple sectors. He points to the 55% increase in temporary staff hired in e-commerce over the past four years as evidence that employers are increasingly turning to flexible staffing solutions to manage seasonal demand and structural challenges.

As the nature of work evolves, seasonal employment is no longer confined to the summer months. It is becoming a vital tool for addressing long-term workforce constraints across key sectors of the Polish economy.

Source: Personal Service

Credit market developments in Poland – May 2025

In May 2025, Poland’s credit market showed mixed trends across product categories. Compared to the same month in 2024, banks and credit unions issued fewer installment loans, which declined by 15.9% in number and 4.5% in value. In contrast, the volume of housing loans increased by 23.7%, cash loans by 17.8%, and credit card loans by 9.6%. The value of these products also rose significantly: housing loans by 31.2%, cash loans by 24.5%, and credit cards by 22.1%.

Looking at the January–May 2025 period compared to the same period in 2024, only cash loans recorded positive growth in volume, increasing by 23.5%. Installment loans fell by 26.3%, housing loans by 10.9%, and credit cards by 2.9%. In terms of total value, cash loans rose by 33.1% and credit card limits by 7.7%, while housing and installment loans dropped by 7.7% and 10.0% respectively.

The installment loan segment continued to show weakness in May, with the downward trend persisting both in the number and value of loans issued. This decline is largely attributed to the reduced volume of low-value BNPL-type transactions transferred from non-banking to banking institutions, a process that is now diminishing. However, the impact on loan value was partially mitigated by higher-value financing for more expensive goods and services. Analysts suggest that a recovery in this segment would depend on increased consumer spending, which in turn requires reduced uncertainty across geopolitical, political, and economic spheres. The average value of an installment loan in May was PLN 2,213, marking a 13.6% year-on-year increase.

Cash loans continued on an upward trajectory, with both the number and value of loans growing. The average loan amount reached PLN 26,041 in May, also up 13.6% from the previous year. The growth is supported by borrowers consolidating existing debt within the same bank or externally, allowing for higher loan amounts through extended repayment periods or more favorable interest rates. High-value cash loans above PLN 50,000 remained a key factor driving this trend. The total value of cash loans granted from January to May stood at PLN 48.35 billion, reinforcing BIK’s earlier projection that the sector could surpass PLN 100 billion in 2025.

The housing loan market showed strong momentum, with a 23.7% year-on-year increase in the number of loans issued in May and a 31.2% increase in value. This marks one of the strongest months since 2021, aside from the period supported by the Safe Loan 2% program. Without any current support schemes and despite elevated interest rates, the volume of loans reached PLN 8.25 billion. The average housing loan amount hit a new record at PLN 439,290, up 6.0% compared to May 2024. Analysts attribute this growth to buyer expectations of future interest rate cuts, stabilized property prices, and the statistical effect of comparing figures against a subdued May 2024 market.

Loan repayment quality remains stable. Although all four BIK Credit Quality Indices deteriorated slightly month-on-month in May, they showed improvement compared to the same period last year. The overall quality of household credit portfolios remains strong, with low credit risk levels. Analysts note that while classic credit risk is under control, banks now face growing legal risks—particularly from ongoing legal challenges to housing loan terms (such as disputes over the WIBOR rate) and sanctions related to consumer credit practices. Nonetheless, current indicators suggest no immediate threat to credit quality, especially if interest rates continue to fall.

Source: BIK

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