Analysts at PKO BP predict a moderate increase in land prices for residential development in Poland over the coming quarters.
Land Price Trends in 2025
Analysts at PKO BP anticipate a continued, moderate increase in land prices designated for housing construction in the coming quarters.
In the second half of 2025, prices of building plots in major Polish cities rose by 5.3-10 percent year-on-year. This followed a 2.3-7.5 percent year-on-year increase in the first half of 2025.
Developer Sentiment and Price Increases
According to a PKO BP report, developers participating in a cyclical NBP survey indicated that land prices net of taxes for multi-family housing projects increased by an average of 13 percent year-on-year in 2025 in average locations.
In very good locations, prices rose by 21 percent year-on-year, compared to 16 percent and 25 percent respectively in 2024.
Impact of Interest Rate Cuts
PKO BP analysts suggest that the improving housing market situation, driven by seven interest rate cuts by the NBP between May 2025 and March 2026, will contribute to maintaining pressure on land prices.
This pressure is expected to be particularly pronounced in large and major cities where unmet housing needs are concentrated.
PKO BP’s Outlook
PKO BP forecasts continued moderate growth in land prices for residential development in the near future.
