Poland's largest residential developers continue to post record operating results despite weaker share prices on the Warsaw Stock Exchange. Strong apartment demand across the country's largest metropolitan areas, improving mortgage availability and sustained urban population growth are supporting the housing market, even as investors remain cautious about future growth prospects.

Poland's Housing Market Continues to Show Resilience

Poland's residential property sector remains one of the strongest segments of the country's economy despite the sharp rise in interest rates seen over the past two years. The latest operating results released by Dom Development, the country's largest listed residential developer, illustrate that demand for new homes remains robust.

The company reported net sales of 2,382 apartments during the first half of 2026, representing a 17% increase compared with the same period a year earlier and marking the strongest first-half performance in its history. Second-quarter sales reached 1,221 units, up 22% year over year. Dom Development has now exceeded 1,000 quarterly apartment sales for eight consecutive quarters, an unprecedented achievement in the Polish primary housing market, according to FXMAG, which cited the developer's operating update.

Management also reaffirmed its ambition to surpass the company's record full-year result achieved in 2025, when 4,448 apartments were sold.

Major Cities Continue to Drive Residential Demand

The strongest demand remains concentrated in Poland's largest urban centers, where population growth, employment opportunities and infrastructure investments continue to support the housing market.

Warsaw remained Dom Development's largest market, accounting for 539 apartment sales during the second quarter. The Metro Zachód, Urbino and Wilno developments generated the highest customer interest.

The Tri-City metropolitan area, comprising Gdańsk, Gdynia and Sopot, ranked second with 351 apartment sales. The DOKI project alone represented nearly one-third of quarterly transactions in the region.

The developer also sold 187 apartments in Wrocław and 144 in Kraków while confirming preparations to enter the Poznań market, expanding its presence into another major Polish metropolitan area.

The strategy reflects broader market trends, with Poland's largest developers increasingly focusing new investments on cities where demographic growth, employment expansion and housing shortages continue to support long-term demand.

Mortgage Lending Is Supporting Market Recovery

Mortgage financing has gradually returned as a key driver of residential sales.

According to the company's operational data, 51% of second-quarter transactions were financed with mortgage loans. The share has increased significantly from last year, when elevated borrowing costs limited affordability for many households.

Following several interest-rate reductions by the National Bank of Poland, mortgage costs have gradually eased, improving access to financing for owner-occupiers. Lower financing costs have encouraged buyers who postponed purchases during the peak of the monetary tightening cycle to return to the market.

Inflation expectations also continue to support residential demand, as many households view real estate as a long-term store of value amid uncertainty over future construction costs and housing prices.

Investors Remain More Cautious Than Buyers

Strong operating performance has not translated into comparable enthusiasm in the equity market.

Dom Development shares declined modestly after the publication of the latest operating figures, with the stock trading about 0.4% lower in early July despite record sales.

Market participants appear to be looking beyond current transaction volumes. Investors remain focused on future earnings growth, financing costs, construction expenses, land acquisition opportunities and the sustainability of demand once the backlog of delayed purchases has been absorbed.

Another source of uncertainty is the absence of a new large-scale government housing subsidy program. Following the conclusion of previous preferential mortgage initiatives, Poland's residential market is increasingly relying on underlying economic fundamentals rather than public support measures.

Recent data published by Poland's statistical authorities and European institutions also indicate that while housing prices continue to increase, the pace of growth has moderated compared with the exceptionally rapid appreciation recorded during previous years.

Market Outlook Points to Sustainable Growth

The latest operating results suggest that Poland's residential market has remained considerably more resilient than many analysts expected following the period of high inflation and elevated interest rates.

Demand remains strongest in the country's largest metropolitan areas, where employment growth, internal migration and limited housing supply continue to support new residential construction.

The market, however, is becoming increasingly selective. Buyers are placing greater emphasis on project quality, location, transport accessibility and the financial strength of developers. This trend is reinforcing the competitive advantage of the largest listed companies while making conditions more challenging for smaller market participants.

As International Investment experts note, the latest results confirm that demand in Poland's primary housing market remains fundamentally strong, but investors should avoid extrapolating the performance of the country's largest listed developers to the entire sector. Market leaders benefit from stronger balance sheets, extensive land banks and easier access to financing. Future market performance will largely depend on the pace of interest-rate reductions, mortgage affordability and households' ability to sustain demand without broad government subsidy programs.

FAQ

Why are apartment sales increasing in Poland?

Sales are supported by improving mortgage availability, strong demand in major cities, population growth and expectations that construction costs may continue to rise.

Why did developer shares decline despite record sales?

Equity investors focus on future profitability rather than current sales alone. They remain cautious about interest rates, financing costs, construction expenses and long-term market growth.

Which Polish cities currently lead the housing market?

Warsaw remains the largest market, followed by the Tri-City metropolitan area (Gdańsk, Gdynia and Sopot), Wrocław and Kraków.

Will Poland's residential market continue growing?

Fundamental demand remains strong, but future growth will depend on inflation, monetary policy, mortgage affordability and broader economic conditions.