How is the Polish real estate market developing?
A market commentary by Beata Latoszek, head of representative office Warsaw
Entering a New Market Phase
The Polish real estate market has entered a new phase in 2026. Following a pronounced correction in 2023 and 2024, the year 2025 marked a period of stabilisation. The first quarter of 2026 confirms this trend: investor activity is picking up, liquidity is increasing, and transactions that were postponed last year are now being completed.
This development is underpinned by solid macroeconomic fundamentals. With economic growth of around 3.5%, further easing inflation moving closer to the target range, and a low unemployment rate, Poland offers an investment-friendly environment.
At the same time, the investment market has become more mature and distinctly more selective. While transaction volume in 2025, at approximately EUR 4.5 billion, remained below the previous year’s level, the growing role of local investors is striking, now accounting for around one fifth of market activity. While international investors – not least due to geopolitical uncertainties – are still acting cautiously in some cases, the overall number of buyers is increasing. Quality is the key driver: stable cash flows, sustainable buildings and strong locations are at the core of investment strategies. This shift from quantity to quality is also reflected across the individual asset classes.
Asset Classes at a Glance
Logistics remains the strongest segment, complemented by light industrial assets. After years of dynamic growth, the market now appears far more balanced. Stable demand – particularly from e-commerce and nearshoring – reduced development activity, and a clear focus on ESG-compliant, energy-efficient properties define the current landscape. With a vacancy rate of around 7%, the segment shows healthy market stability.
The residential sector is increasingly emerging as the most attractive growth area. Institutional investors are driving Resi-for-Rent concepts and alternative living formats such as co-living/ student housing. Limited access to mortgage financing on the purchaser side further supports rental demand. Particularly noticeable is the trend towards converting older office buildings in central locations – from “office space to living space”.
In the office market, the “flight to quality” continues. Warsaw, in particular, remains attractive for investors: demand is focused on modern, ESG-compliant buildings in central locations, while older properties face growing vacancy and refurbishment pressure. Limited new supply in the city centre supports rental levels, while demand for flexible office solutions and coworking concepts continues to grow.
The retail sector is overall stable and mature. Many shopping centres have been modernised in recent years, and footfall levels remain high. At the same time, only a limited number of assets are available on the market. Retail parks – especially in smaller cities – continue to offer selective opportunities for investors.
The hotel market has also largely recovered from the pandemic years. Occupancy rates are stabilising, and banks are once again showing greater willingness to provide financing. While geopolitical developments are weighing on expectations, Poland is increasingly benefiting from shifts in international tourism demand.
Conclusion
Overall, Poland is no longer a boom market but has developed into a mature, resilient and strategically relevant market in Central and Eastern Europe. Capital is available, investors are cautiously optimistic, and financing conditions are starting to ease. Poland therefore remains a stable anchor in a volatile environment – and a market where quality, sustainability and long-term perspectives are decisive.