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The housing and real estate market in Poland – the situation of developers. Why are more small towns being built than big ones?

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It is small cities that drive the housing market, while large ones – the mood is not the best. Despite the housing boom, the largest developers complain about difficulties with starting investments. The reason is that the structure of the market has changed significantly in the largest agglomerations, informs Rzeczpospolita.

The housing market in Poland – construction in small and large cities

“In the first half of 2021, developers in Poland started the construction of 87.7 thousand flats and obtained permits for 109 thousand units. These are record values ​​and an impressive 32% increase compared to the best periods so far: the first half of 2019 ( premises under construction) and in the first half of 2018 (permits) “, we read in Rzeczpospolita.


According to the newspaper, “four years ago, both in terms of launched investments and obtained permits, the six largest agglomerations in the country accounted for half of the market”. The daily pointed out that these shares are currently 32 and 28 percent, respectively, while in 60 other cities with poviat status, they are 62 and 57 percent respectively.

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“This is a signal that the real image of the Polish housing estate consists of a lot of small projects in really small centers” – it was noted.

– In some large cities there has been such a paralysis in issuing construction decisions that companies are looking for an outlet in smaller markets. In Warsaw, the housing offer is the lowest in 13 years – stated Konrad Płochocki, director general of the Polish Association of Developers, quoted by the newspaper.

The situation on the real estate market in large cities

Rzeczpospolita added that the developers’ union has long been calling for the release of land from state and local government resources to stabilize the market and prices.

– The displacement of developers from large cities will be reflected in the hiccups very quickly. People will live outside the cities and pay taxes there, although they will commute to the center, burdening public transport or the road system. Due to the lack of quality apartments, we will see offers straight from San Francisco: renting a basement or garage for residential purposes – explained Płochocki ironically.

– These are small towns, not agglomerations, struggling with the structural lack of modern-standard premises, while the last decade has shown that there are solid economic foundations for consumer demand and investing in rental. This is where production plants and logistics centers are located, said Jan Dziekoński, an independent real estate expert, in an interview with the daily.

“Of course, home-grown developers are adding their own, tempted by” extraordinary “profits and” infinite “demand. Will the trend continue? Jarosław Jędrzyński, an expert of the Rynekpierwotny.pl portal, points to the risk of depopulation of smaller cities, which is noted in the forecasts of the Central Statistical Office” – wrote the daily .

Main photo source: Shutterstock

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