Polish real estate market shows divergent trends in rental yields and secondary market prices

The Polish real estate market is experiencing contrasting dynamics between primary investment opportunities and the secondary market. In Płock, investors are seeing higher gross rental yields compared to Warsaw. A 50 m² apartment in Płock offers a 5.11% gross yield, while the same size in Warsaw yields 4.24%. This difference is driven by lower purchase prices in Płock, which are approximately 30% cheaper than in Warsaw, alongside relatively stable rental rates.

In contrast, the secondary housing market is facing downward price pressure despite a shrinking supply. As of late October, the number of used apartment listings in Poland decreased by 12% year-on-year to approximately 131,500. Despite this reduction in availability, average asking prices have fallen in major metropolitan areas, including Warsaw, Krakow, Tricity, and Katowice. Experts attribute this trend to intense competition from developers, who maintain high levels of new housing inventory across these cities.