The Polish real estate market remains in a waiting phase, anticipating key investment stimuli, notes Bartłomiej Zagrodnik, Managing Partner and CEO at Walter Herz. “There is still a strong demand for core and core-plus investors who can provide stability and support the development of low-risk projects. At the same time, we’re observing significant interest in purchasing land for residential development in major cities, each of which has its unique characteristics. Therefore, analyses must be conducted locally, concerning specific regions,” says Bartłomiej Zagrodnik.
“Developers are increasingly seeking opportunities to adapt older buildings for new uses. This trend is driven by both limited land availability and the growing importance of sustainability in investment strategies. In practice, however, actions in this area are still being held back by a lack of transparency and flexibility in the legal environment. Market participants unanimously point to the need for regulatory improvements, which could stimulate supply, particularly in the residential project segment,” he adds. “In the office sector, the market is primarily awaiting a reduction in financing costs. This would enable the return of investors from Western Europe and Asia. Currently, high interest rates and macroeconomic uncertainty remain significant barriers to greater capital activity in this sector,” Bartłomiej Zagrodnik continues.
Emil Domeracki, Partner and Board Member of Land Development Advisory at Walter Herz, confirmed that there is strong investor interest in well-located land for residential development. “Many developers and investment entities have expressed readiness to conclude transactions. From the numerous discussions held with participants of the Real Estate Market Forum (FRN), it is evident that there is sustained demand for well-prepared residential plots. Investors are prepared to act, provided stable conditions and efficient administrative processes are ensured. However, the pace of administrative decision-making—especially regarding building permits—remains a key challenge for launching new projects. Improving the efficiency of administrative units would enable companies to operate more smoothly,” notes Emil Domeracki.
He also highlights that despite the difficulties, foreign investors are intensifying their transactional activity in Poland. “Given the complex administrative procedures and often inconsistent changes to planning regulations, investors currently favour smaller, safer projects in major regional cities. As a result, local expertise and knowledge of regional markets are becoming crucial in building trust and long-term relationships with investors. At present, we are managing administrative processes for several new, lesser-known investors from the Baltic Sea region, as well as from Turkey and Hungary. The presence of this capital confirms that Poland remains an attractive investment market,” he adds.
According to Damian Karkosiński, Investment and Acquisition Specialist at Walter Herz, a strong interest in land for residential development is coupled with a willingness to close transactions quickly. “Current market conditions still require caution from investors. Expected further reductions in interest rates would provide a significant boost to the pace of residential property sales.” According to analysts, apartment prices are expected to remain stable, with a tendency to rise in the medium term. A return of individual investors—those investing in property with cash—could play an important role in the residential market. Over the longer term, demographic factors such as demand structure and housing needs of the younger generation will increasingly influence market conditions. Legislative decisions and the direction of housing policy will also remain important. For example, any attempts to introduce a tax on owning multiple properties could significantly dampen investment activity in this segment.
