Polish housing prices fall amid weakening demand

The Polish housing market is currently struggling as supply and demand are weakened by high interest rates and declining purchasing power caused by rising inflation coupled with economic and geopolitical uncertainty. Adjusted for inflation, prices actually fell 12.98% over the same period, according to the country’s central bank. On a quarterly basis, prices for existing apartments in the country’s seven major cities rose modestly by 0.88% in the second quarter of 2023 (1.8% adjusted for inflation).

In Warsaw, average house prices fell by 4.05% in the year to the second quarter of 2023 (a huge 15.37% decline when adjusted for inflation). This is in stark contrast to the 13.34% price increase in the previous year.

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