Warsaw Sees More New Apartments as Developers Expand Offerings

Warsaw's real estate market saw a significant surge in new apartment offerings in the second quarter, with developers introducing 4,753 units. This marks a 66.8% increase from the previous quarter, pushing the total available stock to 16,345 units by the end of June. Despite the expanded supply, sales experienced a slight dip of 9.4% compared to the strong performance of the first quarter. However, demand remained robust, exceeding the five-year quarterly average by 4.6%.

A notable trend is the increasing number of completed, unsold apartments, which reached a record 3,344 units, or 20.5% of the total offer. This includes units finished in previous periods and even some scheduled for completion in late 2025. Analysts anticipate this elevated share of ready-to-move-in apartments to persist as new developments are handed over.

In terms of pricing, developers introduced more affordable options in the second quarter, with the average price of new apartments dropping by 8.6% to 18,600 PLN per square meter. This is the first time the average price has fallen below 19,000 PLN/sqm in three quarters. New housing projects are increasingly located outside the city center, with larger developers launching more estates aimed at a broader buyer base, which helps lower the average cost of new supply.

Favorable credit conditions, including lower interest rates and a wide selection of ready or nearly ready apartments, are supporting buyers. However, rising construction costs and new regulations could potentially limit future investment. The market's direction will depend on the pricing of upcoming developments.