Polish property bubble

Block of flats in Cracow

Real estate prices rose drastically from 2002 to 2008 in Poland. Between June 2006 and June 2007 the average price of one square metre of residential area in Warsaw rose from 6,683 PLN (1,636 EUR) to 9,540 PLN (2,519 EUR), or 50% in euro terms.[1] A peak in prices occurred in autumn 2008 as the average price of a square meter of residential space in Poland started to drop by 5% in nominal terms or 10% per year in real terms. [2]

In Warsaw, Poland's capital city, the average price per square meter declined from 9,000 PLN (2,500 EUR) in 2008 to 7,400 PLN (1,850 EUR) in 2013.[3]

In early 2007, it can be argued that the Polish property market began to show the early signs of a property bubble: [2]

As of 2013, house prices in Poland have been falling since mid-2008. Compared to pre-crisis peaks:[2]

The arguments for further real estate price rises or stabilization are:

In addition, Warsaw has a population of only 2 million people – approximately 5% of the whole of the country – which is very low for a capital city.[4] Poland is also one of many countries with a rather high house price to income ratio (13.58) and an estimated rental profitability between 3.92% to 4.31% for residential units.[2]

See also


  1. (Polish) Prices of flats in Warsaw, Real Estate Statistics - 2007: Retrieved Nov.4, 2013
  2. 1 2 3 4 Recent history of Polish housing, House Price History in Poland from 2002 to 2013: Retrieved on Nov.4, 2013
  3. (Polish) Prices of flats in Warsaw in square meters, Retrieved on Nov.4, 2013
  4. Property Investment Index By Country Retrieved on Nov.4, 2013

External links

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