Poland’s residential sector is showing signs of strain, with fewer flats under construction, a sharp drop in building permits and the lowest number of completions since 2018. These trends suggest developers are rethinking investment plans and adapting strategies to a more cautious market environment.

Tomasz Kaleta, Managing Director of Sales and Marketing at Develia
Despite the record-high supply, we are not significantly changing our plans to launch new projects in the cities where we operate. This is particularly true given that in July this year we finalised the acquisition of Bouygues Immobilier Polska, which allowed us to increase both the number of flats under construction and the potential of our land bank – primarily in Warsaw, which is the largest and most stable market in Poland, as well as in Poznań and Wrocław. In line with our strategy, we assume a gradual increase in market share so that in 2028 we will achieve our sales target of 4,500 flats per year.

Well-designed investments in attractive locations, even in a challenging market environment, maintain a high level of demand, which is reflected in our sales results in recent months. The main area of our activity remains the sale of flats to individual customers. As part of our diversification, we are gradually acquiring new competences in the living sector. We are currently awaiting a building permit for a student residence in Wrocław in a joint venture formula. We have also acquired another plot of land in the centre of Wrocław, where we plan to build a facility for students comprising approximately 600 flats and commercial premises. In our opinion, the PBSA (Purpose Built Student Accommodation) segment has great growth potential in Poland.

Andrzej Gutowski, Sales Director, Ronson Development
It comes as no surprise that developers are adjusting their production to much lower demand. The housing market in Poland is currently slowing down, as signs of a slowdown have been visible for some time. There was a time when the market was deluded by the rapid introduction of housing programmes and faster interest rate cuts. This caused developers to increase supply beyond real demand. Currently, the situation has stabilised and the market has entered a phase of equilibrium at a lower level than in previous years.

Looking ahead to the next two years, we expect a return to the boom of 2021 or 2023. This naturally influences our strategy. We are making investments more cautiously, in a more selective manner and in line with real demand. We treat this period as a time of stabilisation, during which we can prepare for future growth impulses, such as potential interest rate cuts.

Our strategy is based primarily on stable growth, adjusting the pace of investment to the market situation and closely monitoring the decisions of the Monetary Policy Council, which will have a key impact on the further dynamics of the market. We see this period as a time of stabilisation with slight optimism rather than a sharp slowdown in the industry.

Mirosław Bednarek, Regional Business Director, President of the Management Board of Matexi Polska
We are seeing a gradual recovery in demand in the property development market. In the second quarter of this year, we observed a clear increase in customer activity. This was not only due to the first interest rate cut, but also to the fact that some buyers stopped postponing their purchasing decisions in anticipation of a new government programme. From April to June, we concluded a total of 99 development agreements, which represents an increase of nearly 40 per cent compared to both the first quarter of 2025 and the same period last year. According to preliminary sales data, we expect further improvement in results in the third quarter as well.
The consistent expansion of our offer with new projects also contributes to the increase in sales. We have recently launched two investments – Sady Żoliborz II at the intersection of Anny German and Zygmunta Krasińskiego Streets in Warsaw, where 66 flats are being built, and Bukowińska Mokotów in Warsaw’s Mokotów district, comprising 72 flats and two commercial premises. At the beginning of next year, we also plan to launch further investments, one in Krakow and two in Warsaw.

Thanks to growing customer interest and the planned launch of new projects, we are not limiting our investment activity and are constantly looking for attractive plots of land. However, it is worth noting that it often takes several years to obtain a building permit, and during this time, unforeseen circumstances may arise that could further prolong the process.

Joanna Chojecka, Sales and Marketing Director for Warsaw and Wrocław at the Robyg Group
Although statistics for the first months of 2025 indicate a certain slowdown in the number of investments started or building permits obtained, we do not see this as a permanent weakening of the housing market, but rather as a natural correction after a period of very dynamic growth. The market remains active, and demand for new flats, especially in large cities, remains high, due to strong housing needs, internal migration and the growing importance of renting, among other factors.

We are approaching this situation strategically, but we are not slowing down. We are maintaining high sales dynamics and actively introducing new projects to our offer, both in the largest agglomerations and in developing markets. Despite the more challenging economic environment, demand for flats remains stable, and our recognisable locations, competitive offer and quality of workmanship continue to attract customers.
We are seeing stable, high sales levels. Customers are active, and our wide range of products, flexible approach and attractive locations mean that we are enjoying considerable interest. Our strategy is to continue growing, both in the residential sales segment and in the PRS model, which allows us to respond flexibly to changing market needs.

We are optimistic about the second half of the year and the coming years. We expect demand to remain strong as interest rates continue to stabilise and mortgage lending becomes more accessible. We are well prepared to continue our operations – we have secured a land bank, ready-to-go projects and a highly experienced team. For us, the current situation is primarily an opportunity to further strengthen our market position and grow for the benefit of both customers and investors.

We do not plan to limit our activities – on the contrary, we are consistently implementing our development strategy and exploiting the market potential where there is still a real demand for housing. It is crucial for us to remain flexible and quickly adapt the structure of our offer to current customer expectations and market conditions. We monitor the situation on an ongoing basis, ensuring the appropriate pace of investment implementation and a safe level of capital commitment.

Damian Tomasik, President of the Management Board of Alter Investment
We are observing a slowdown in the housing market, especially in terms of the number of new building permits. Due to high interest rates, the supply of new investments is adjusting to demand. For Alter Investment, however, this does not mean a slowdown in activity, but a smarter selection of projects. We specialise in land preparation and refinement, which is why in the current environment we are focusing on investments with the highest potential and shorter time to obtain administrative decisions. At the same time, we are developing new locations and segments, both residential and single-family housing or PRS, which allows us to diversify our activities and flexibly adapt our strategy to changing market conditions.

Renata Mc Cabe-Kudla, Country Manager at Grupo Lar Polska
The housing market in Poland, particularly in Warsaw, is growing more slowly than in previous years due to a significant increase in the time taken to process applications by the authorities. We assume that the slowdown is temporary.

Piotr Ludwiński, Sales Director at Archicom
In my opinion, the residential market in Poland is not slowing down, but stabilising after a very intense period related, among other things, to the 2% Safe Credit programme. We continue to see stable demand and high customer activity, and our investments, carefully designed and diversified in terms of size, meet the needs of singles, families and those buying premises for investment purposes.

At the same time, we are not reducing our investment activity. On the contrary, we have an extensive land bank and are consistently developing our operations in the residential segment. The sale of the City2 office building has allowed us to focus 100% on this area. In this respect, we are diversifying our offer, from popular segment flats, through investment projects, to city-forming ‘destination’ projects such as Fuzja, Wita and Towarowa 22.
In the coming years, we plan to launch attractive projects in the largest Polish cities, while at the same time developing investments under the so-called lex deweloper (developer law) in Wrocław and Warsaw.

Source: dompress.pl
Image: WARYNSKI-STACJA LIGOCKA