Residential construction market analysis
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See the scan catalogueThe residential construction market in Poland in 2025 and early 2026 shows signs of gradual stabilisation, but also a significant slowdown in investment and a fall in construction starts. Most housing needs are still met by developer projects for sale or rent and by individual construction, while social and cooperative housing is becoming increasingly marginal. Despite limited supply, the construction of larger units has become popular: the average floor area of a newly built dwelling jumped from 87.0 m² in 2025 to 93.0 m² at the beginning of the following year. Financially, the sector is close to equilibrium: transaction prices in the primary market are stabilising, and their final level depends on steadily rising land costs. Poland also remains the EU leader in the number of building permits issued, which clearly sets it apart from other European countries.
01
How many dwellings were completed in Poland in 2025?
According to data from Statistics Poland (GUS), between January and December 2025 a total of 208,792 dwellings were completed, an increase of 4.34% compared with the previous year. However, in 2020–2023 this figure consistently remained above 220 thousand units. The 2025 result is therefore a sign of gradual market stabilisation, although it still indicates that the sector's capacity has not fully recovered from the slowdown of previous years.
Dwellings for sale or rent retained the dominant share of the market. In 2025, 134,149 of them were completed, an increase of 7.62% on the previous year (when the figure was 124,653 units). This result confirms the high level of activity in the developer sector, whose share of total supply was 64.25%. Individual construction came second, with a share of 32.39% (67,618 dwellings). Other forms of construction accounted for just 2.92% of the market, and cooperative housing for a marginal 0.45%.
| Form of construction | Number of dwellings | Market share (%) |
|---|---|---|
| total | 208,792 | – |
| for sale or rent | 134,149 | 64.25 |
| individual | 67,618 | 32.39 |
| other forms | – | 2.92 |
| cooperative | – | 0.45 |
According to preliminary statistics in the report for January 2026, 14,674 dwellings were completed, 8.0% fewer than in the same month of the previous year. Developers delivered 8.6 thousand dwellings, 11.4% fewer than a year earlier, while individual investors delivered 5.7 thousand dwellings, i.e. 1.0% more.
02
How many dwellings were started in Poland in 2025?
In 2025, investment activity cooled significantly: construction started on 212.4 thousand dwellings, a decrease of 9.2% compared with the previous year. This is an important leading indicator and suggests that fewer dwellings will be completed in the coming years.
Dwellings for sale or rent dominated new starts, accounting for 61.0% of all investments. Individual construction (37.1%) also retained a significant share, although this segment is the most sensitive to persistently high construction costs. The remaining 1.9% was social housing (municipal, social rental and employer-owned) and cooperative housing. This confirms that these forms of housing are steadily losing ground to commercial developer projects.
| Form of construction | Share (%) |
|---|---|
| for sale or rent | 61.0 |
| individual | 37.1 |
| social housing (municipal, social rental and employer-owned) and cooperative | 1.9 |
According to the latest GUS report for January 2026, construction started on 12.3 thousand dwellings, i.e. 28.6% fewer than a year earlier. Developers started construction of 8.9 thousand dwellings (29.6% fewer than a year earlier), and individual investors 2.9 thousand (30.6% fewer). Together, these forms of construction accounted for 95.6% of the total number of dwellings. In other forms of construction, work started on 541 dwellings (468 the previous year). This shows a clear slowdown in investment activity in the property market at the beginning of 2026.
| Form of construction | Number of dwellings | Decrease y/y (%) |
|---|---|---|
| total | 12.3 thousand | 28.6 |
| developers | 8.9 thousand | 29.6 |
| individual investors | 2.9 thousand | 30.6 |
| other forms (previous year: 468) | 541 | – |
03
What is the average size of a new dwelling in Poland?
According to GUS data, the average size of a newly built dwelling was 87.0 m² in 2025 and rose to 93.0 m² in January 2026.
According to GUS data, in 2025 the total usable floor area of newly built dwellings reached 18.2 million m², an increase of 1.8% year on year, with the average size of a single unit at 87.0 m². However, data for January 2026 showed a clear decline in investment activity: the total usable floor area of completed dwellings fell by 4.1% year on year, to 1.4 million m². At the same time, the average size of a newly built dwelling rose significantly to 93.0 m², which suggests a shift towards larger homes.
04
How much does 1 m² of housing cost in Poland?
In Q4 2025 the average transaction price per 1 m² in the secondary market in Warsaw was PLN 16,750, compared with a national average of PLN 7,933.
In Q4 2025, asking prices fell in most cases, and transaction prices followed. The National Bank of Poland (NBP) report covered the 6 largest cities in Poland (Warsaw, Kraków, Wrocław, Łódź, Poznań, Gdańsk) and shows a large gap between average prices per 1 m² for the whole country and for individual cities. The highest average transaction price per 1 m² in the secondary market, in Warsaw, was PLN 16,750, or ~211% of the national average (PLN 7,933). Such a wide price range confirms the strong polarisation of the Polish property market, where the capital and the largest metropolitan areas follow their own trends, separate from those in smaller towns. Warsaw's top prices reflect not only investment demand but also the limited supply of land in prestigious locations.
05
How are mortgage loans driving Poland's housing market?
According to BIK, in February 2026 banks granted 54.1% more housing loans than a year earlier, and their total value rose by 67.4% to more than PLN 10.6 bn.
Although data on the number of building permits issued and construction starts point to weaker developer activity, statistics from the Credit Information Bureau (BIK) show that the housing market in Poland is in a phase of strong recovery. In February 2026, banks granted 54.1% more housing loans than a year earlier, and the total value of the funds granted rose by 67.4% to more than PLN 10.6 bn, one of the highest figures on record. Around 80% of this amount goes directly to the primary and secondary markets, which shows the enormous scale of purchases made by Poles. The constant rise in property prices is reflected in the average loan amount, which was PLN 454,050 (up 8.6% year on year).
06
How does housing in Poland compare with the rest of the EU?
In Poland 58.4% of citizens live in houses and 41.4% in flats, while across the EU in 2024 the figures were 51% and 48% of the population respectively.
According to the Eurostat report "Housing in Europe, 2025 edition", the distribution of the population by type of accommodation (house, flat or other) varies between EU countries. The factor with the greatest influence is whether people live in a city, a town, the suburbs or a rural area.
In 2024, 51% of the population of the European Union lived in houses, while 48% lived in flats (and 1% in other types of accommodation, such as houseboats or campervans). Houses are the most common form of dwelling in two thirds of EU countries. The highest shares of people living in flats were recorded in Spain (65%), Latvia (64%) and Malta (63%).
In Poland, the split is as follows: 58.4% of citizens live in houses and 41.4% in flats. This places Poland among the countries with a strong attachment to the traditional model of single-family housing, which is particularly visible in rural and suburban areas.
| Area | Houses (%) | Flats (%) |
|---|---|---|
| European Union (2024) | 51 | 48 |
| Poland | 58.4 | 41.4 |
| Spain | – | 65 |
| Latvia | – | 64 |
| Malta | – | 63 |
07
What trends are shaping residential construction in Poland?
The main trends are modular construction, which is growing by 11.62% a year, and sustainable construction driven by ESG reporting requirements.
Modular construction
Modular and prefabricated construction is becoming more popular in Poland, and the sector is growing by 11.62% a year. Traditional methods still dominate, but modular solutions are steadily gaining market share. The trend is actively supported by the Polish Development Fund (PFR). Its main advantages are much shorter project lead times and less construction waste. Polish companies are currently recognised as world leaders in this field. They supply advanced prefabricated elements and modules that perform well in both low-rise and high-rise buildings around the world. These methods have moved beyond their original use in the hotel industry and are increasingly used in educational and healthcare buildings and in the residential sector.
ESG and sustainable construction
In 2026 the shift towards sustainable construction is gathering pace. It is now above all an economic requirement, as well as an ethical one. Developers must carry out ESG reporting, which forces them to use low-emission materials, look after biodiversity and implement circular economy solutions. In 2026, buildings with certificates such as BREEAM or LEED are expected to exceed 40% of new multi-family projects.
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Source: MarketHub, "Residential construction market analysis", markethub.pl, 10.2021