What Happened
Recent reports indicate that Poland’s housing market has experienced its first year-on-year decline in property prices in over a decade. According to data from the National Bank of Poland (NBP), average transaction prices per square metre fell by 0.8% in the primary market and 0.4% in the secondary market during the fourth quarter of 2025. This marks the first annual drop in primary prices since 2014 and in secondary prices since 2016.
Why It Matters
The decline in housing prices is significant as it reflects a shift in the Polish real estate market, which had previously seen rapid price increases due to a booming economy and a state-backed mortgage subsidy scheme. The simultaneous drop in both primary and secondary markets has not been observed since 2013, indicating a potential cooling of the market after years of growth.
Additionally, on December 19, 2025, a draft regulation was published by the Minister of Climate and Environment concerning the amendment of the Regulation on areas permitted for underground carbon dioxide storage in Poland. This draft aims to align with the European Union’s CCS Directive, allowing Poland to determine suitable locations for carbon dioxide storage facilities, which is crucial for reducing emissions in hard-to-decarbonise sectors.
What’s Next
As the housing market adjusts to these new realities, stakeholders will be closely monitoring further trends in property prices and market dynamics. The potential implementation of the new carbon storage regulations may also pave the way for advancements in Carbon Capture and Storage (CCS) technology in Poland, which could play a vital role in the country’s environmental strategy moving forward.
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