Why aren't Polish house prices rising more?
With record-low interest rates, constrained supply, and a new housing subsidy program, housing demand in Poland continues to rise strongly. Surprisingly, house price increases have been very minimal.
The average price of existing flats in Poland's 7 big cities (Warsaw, Gdańsk, Gdynia, Kraków, Łódź, Poznań, and Wrocław) rose slightly by 0.3% (1.3% inflation-adjusted) during the year to Q1 2016, according to the Polish central bank, Narodowy Bank Polski (NBP). During the latest quarter, house prices were up by 0.1% (0.8% inflation-adjusted).
Warsaw has the most expensive housing in the country, with an average selling price of PLN8,658 (EUR1,975) per square metre (sq. m.) in Q1 2016, according to the NBP. It was followed by Kraków, with an average price of PLN6,827 (EUR1,558) per sq. m., Gdynia with PLN6,407 (EUR1,462) per sq. m. and Gdańsk with PLN6,193 (EUR1,413) per sq. m.
