2024 Polish Real Estate Market: Key Insights

With a decade of experience in the real estate industry, working closely with both foreign and local Polish investors, I have a unique vantage point on the evolving dynamics of the Polish real estate market. The increasing interest from foreign capital underscores the opportunities that Poland offers.

Here are the key insights for 2024:

1. Market Recovery: The Polish real estate market is poised for a robust recovery in 2024, following a significant decline in investments in 2023. This resurgence is driven by lower inflation and stable interest rates, which reduce the cost of financing new transactions. The stabilization of these economic factors is crucial for fostering investor confidence and encouraging new investments.
2. ESG Prioritization: Environmental, Social, and Governance (ESG) factors are becoming increasingly important. Market players are focusing on improving the energy efficiency of buildings and adopting sustainable practices to meet ESG standards. This shift towards sustainability is not only beneficial for the environment but also enhances the long-term value of properties.
3. AI Integration: Generative AI (genAI) is being used more widely in property management, valuation, leasing, and due diligence. These technologies help improve efficiency and support sustainable development. AI tools are revolutionizing the way real estate transactions are conducted, making processes faster and more accurate.
4. Supply Shortage: Due to fewer construction starts in 2022, there may be a housing supply shortage in 2024. This could lead to higher property prices as demand outstrips supply. The limited availability of new housing units is expected to create a competitive market, driving up prices and making it a seller’s market.
5. Foreign Investment: Poland continues to attract foreign investors, particularly from Europe. In 2023, European investors accounted for 57% of the market, while American investors made up 13%. This international interest underscores Poland’s appeal as a stable and profitable investment destination.
6. Decarbonization Efforts: Property owners are focusing on reducing the carbon footprint of their buildings. This involves using energy-efficient technologies and environmentally friendly materials. These efforts are aligned with global trends towards sustainability and are essential for meeting regulatory requirements.
7. Hybrid Work Trends: The hybrid work model is influencing how office spaces are used. To attract employees back to the office, buildings need to offer appealing amenities and services. Flexible workspaces, wellness facilities, and advanced technological infrastructure are becoming standard features in modern office buildings.
8. Warehouse and Industrial Sector: Poland is an attractive market for warehouse and industrial investments due to the trend of shortening supply chains and relocating production activities to the country. The strategic location of Poland in Europe makes it an ideal hub for logistics and manufacturing.
9. Economic Growth: Poland’s GDP is projected to grow by 3.7% in 2024, making it an appealing destination for investors. This economic growth is a positive indicator for the real estate market, as it suggests a stable and expanding economy.
10. Investment Volume: In 2023, there were 82 transactions worth €2.1 billion, compared to 122 transactions worth €5.8 billion in 2022. This indicates a significant drop in investment activity. However, the anticipated market recovery in 2024 is expected to boost transaction volumes.
11. Energy Efficiency: Increasing the energy efficiency of buildings is a key strategy for reducing operational costs and meeting ESG requirements. Energy-efficient buildings are more attractive to tenants and investors, as they offer lower utility costs and a smaller environmental footprint.
12. Technological Advancements: The adoption of modern technologies is crucial for achieving energy efficiency and sustainability goals in the real estate sector. Innovations such as smart building systems and renewable energy solutions are becoming more prevalent.
13. Office Space Utilization: Office space utilization remains at around 30%. Companies need to offer more services and amenities to attract employees back to the office. Creating a desirable work environment is essential for maintaining high occupancy rates.
14. Geopolitical Impact: The geopolitical situation in 2023 significantly impacted the real estate market, leading to a slowdown in investment and development activities. Stability in the geopolitical landscape is necessary for sustained market growth.
15. Investor Confidence: Despite the challenges, Poland remains on the radar of investors due to its strong economic growth and strategic location. The country’s resilience and potential for high returns continue to attract investment.
16. Sustainability Initiatives: Sustainability initiatives are becoming increasingly important, with a focus on creating healthy and energy-efficient work environments. These initiatives are driven by both regulatory requirements and market demand.
17. Regulatory Changes: New regulations related to ESG reporting are driving changes in the real estate sector, requiring greater transparency and accountability. Compliance with these regulations is essential for maintaining investor trust and market integrity.
18. Market Dynamics: The market dynamics are influenced by macroeconomic factors, including high interest rates and inflation, which affect financing costs. Understanding these dynamics is crucial for making informed investment decisions.
19. Residential Market: The residential market is expected to face challenges due to the supply shortage, potentially leading to higher prices. This presents both opportunities and risks for investors and developers.
20. Competitive Advantage: Companies that can quickly adapt to market changes and offer innovative solutions will have a competitive advantage in the real estate market. Flexibility and innovation are key to staying ahead in a rapidly evolving market.

Poland is becoming increasingly attractive to real estate investors and is often appreciated as a desirable place to live, with many foreigners choosing to move here.

As a real estate broker, I support my clients in the decision-making process, adding value by helping them make smarter and more profitable decisions while protecting them from costly mistakes. My expertise and insights ensure that my clients can navigate the complexities of the market with confidence.

If you’re considering investing in Polish real estate and need guidance on your next move, don’t hesitate to contact me. Let’s work together to achieve your real estate goals.