News & Insights

These are selected items from the periodic investor newsletter.

July 2025

Record-High Real Estate Prices

Poland recently saw a new record in property prices: one buyer paid over PLN 65,500 per square meter, while luxury apartments have sold for up to PLN 25 million each. This surge reflects Poland’s growing prosperity, with rising incomes (see average wage chart below), very low unemployment, and a strong economy fueling the luxury real estate boom.

Expanding Premium Segment

Wealth growth in Poland is also visible in the luxury car market, which expanded by 34.8% in 2024, reaching a value of PLN 36 billion. More than 44,000 Poles now earn over PLN 1 million annually.

As a result, Polish buyers increasingly expect more than “four walls.” Demand is rising for premium residential projects offering gyms, spa zones, landscaped gardens, stylish lobbies, co-working spaces, cinemas, or swimming pools. Foreign professionals relocating with multinational employers also prefer this standard.

Supply, however, is limited – particularly for large, high-quality apartments. Most domestic and foreign investors still focus on small, lower-cost units, creating an undersupply in the premium segment. While standard apartments face strong competition due to abundant supply, premium properties stand out as differentiated, resilient investments.

Changing Investor Preferences

Traditionally, budget apartments – especially for students – dominated the market, favored by locals with limited purchasing power and by cautious foreign investors seeking lower risk. Today, however, Poland is clearly shifting toward premium demand.

For standard apartments, we believe the better opportunities now lie in smaller cities, focusing on well-located, good-quality units. But without doubt, the country is moving in one direction: growing demand for premium real estate.

International Recognition

Poland’s rise has not gone unnoticed. The Economist recently ran a cover story titled “Poland, Poland, Poland – The Remarkable Rise of Poland,” highlighting the country’s strong economic trajectory and noting that Polish living standards are catching up with Japan’s and are expected to surpass them.

Tourism Growth

Tourism is booming as well. In Wrocław, the regional capital of Lower Silesia, the airport set a new record in May, serving over 487,000 passengers – up by 70,000 (+16%) compared with the same month last year. In 2024, traffic rose by around 10% compared with 2023, and in 2025 the airport expects to reach 4.7 million passengers. The most popular destinations are the UK, Italy, and Spain.

Interest Rates & Housing Market Outlook

In June, Poland’s central bank cut interest rates to 5%, the second reduction in recent months. Lower borrowing costs will likely push property prices higher. Today, more than 50% of young adults (ages 25–34) still live with their parents – far above the European average of 30% – largely due to expensive mortgages. With continued growth, more will move into their own homes, strengthening demand in both the rental and sales markets.

Capital Markets Confidence

Investor confidence is also visible on the Warsaw Stock Exchange. Since the start of 2025, the main index has risen by over 28%, compared with just under 8% for the EuroStoxx 50 (Europe’s leading blue-chip index). This strong performance highlights both international and domestic trust in the Polish market and the growth of local companies.

March 2025

Clear Stance on Migration & Security

Poland has declared it will not honor refugee treaties if migrants are encouraged or facilitated by hostile actors — pointing to the recent use of migration as a tool of hybrid warfare. While Western European countries struggle with social and political tensions linked to refugee absorption, Poland maintains a different approach.

Muslims represent less than 0.5% of Poland’s population, compared with 5% or more in several Western European states, where higher birth rates among migrant communities are reshaping demographics.
There is a broad political consensus across all Polish parties to avoid large-scale intake of refugees from the Middle East and Africa. Instead, Poland emphasizes its role as a host for millions of Ukrainian refugees since 2022.

At the same time, Poland has become the leading EU country in issuing residence and work permits to non-EU nationals, more than any other member state — reflecting its openness to economic migration aligned with labor market needs.

EU Funding & Defense Investments

Poland is the largest net beneficiary of EU funds, having received more than €260 billion since joining the Union. Recently, around €7 billion in EU recovery funds originally intended for post-COVID reconstruction have been redirected towards defense and security, including:

Cybersecurity infrastructure,
Defense industry modernization,
R&D in security technologies.

This reflects Poland’s growing role as a pillar of NATO’s eastern flank and as a secure environment for business and investment.

Interest Rates, Property Market & Opportunities

The National Bank of Poland’s base rate remains high at 5.75%, making Polish mortgages among the most expensive in the EU — around 8% annually. For investors with substantial cash reserves (e.g., over PLN 1 million / €225,000), this creates a unique advantage:

Greater negotiating power with sellers in both the primary (developer) and secondary (resale) markets.
Potential for significant discounts on property purchases.

When interest rates eventually fall, property values are expected to rise, providing strong upside for early movers.

Strong Economy & Global Recognition

Poland’s economy remains one of the strongest in Europe:

Unemployment at 2.6%, the lowest in the EU.
GDP growth more than double the EU average.
Stock market strength: the Warsaw WIG index rose 23% year-to-date in 2025, compared with a nearly 9% decline on the NASDAQ.
The Polish złoty has been strengthening against several major currencies, underlining investor confidence.

Even international media outlets are taking notice. Fox News recently described Poland as:

“Europe’s best kept secret: Poland, the region’s economic tiger. The former Soviet satellite looks unstoppable… Nothing seems to get in the way of Poland going from strength to strength despite being part of the sluggish European Union.”

January 2025

Poland’s Economic Transformation: Rising Wages, Expanding Wealth, and a Strong Property Market

Anyone visiting Poland recently will notice: prices have risen sharply across almost every sector — from hotels and restaurants to clothing and real estate. The gap with Western Europe is narrowing, and cities like Warsaw and Kraków can no longer be called “cheap destinations.”

Rising Incomes Fueling Demand

The main driver is significant wage growth. The average salary now stands at nearly €2,000 per month (just over PLN 8,000) — an increase of more than 60% since 2019. In major cities, incomes are even higher.
A striking milestone: in 2024, Poland’s minimum wage surpassed the U.S. federal minimum wage for the first time.

A New Era for Polish Companies

Poland’s economic story is not only about incomes. A true turning point is the rise of Polish corporations. In a historic reversal, Polish companies are now acquiring foreign businesses, rather than being bought out themselves. One high-profile example: the world’s oldest travel company, Thomas Cook (UK), is now owned by a Polish firm. Analysts increasingly suggest that within a few years, Poles may be wealthier than Britons on a per-capita basis.

Real Estate Market on the Rise

Property prices in Poland’s largest cities grew 11–17% in the past year (depending on the segment). With construction costs rising — wages, materials, and energy — there is little chance of a price decline.
Other structural factors support long-term growth:

A large share of aging buildings leaving the market.
Low housing space per capita compared to the EU average.
Over 50% of young adults (25–34) still living with parents, vs. just 30% in the EU.

As these gaps close, demand for housing — especially modern and premium apartments — is set to accelerate.

A Consistently Strong Economy

Poland’s economy remains one of Europe’s strongest:

GDP growth is more than twice the EU average.
Poland has enjoyed 28 consecutive years of economic expansion — a record within the EU.
Unemployment is low, with 2023 recording the highest labor shortages in Europe.