According to data from Central Statistical Office (source), the number of new single-family house constructions started last year was the lowest in 17 years. The year 2024 is expected to be better, but building your own house in Poland is still not a cheap investment for Poles. Construction costs are rising, though not as quickly as in the past. Currently, building one square meter of a single-family house to a developer condition costs about 6,75k PLN.
The increase in building plot prices hovers around the inflation rate, up to 6%.
According to the Central Statistical Office (GUS), in 2023, individual investors started building more than 60,000 houses across Poland. This is extremely low. It amounts to less than 2 houses per 1,000 residents.
From the perspective of someone who works in countries with higher wages than those experienced in Poland, or who receives a pension, the costs of apartments and houses remain low. However, for Poles, the cost of living in an apartment or house compared to wages is high.
What will 2024 and 2025 be like? How much does it cost to build a house in Poland?
The recent months have shown a marked improvement. While construction costs continue to rise, the pace has slowed. At the start of 2021, the cost for building a square meter of a single-family house to a developer condition was just under 4,000 PLN. Now, it exceeds 6k PLN per square meter. By the end of 2022, the annual increase in construction costs was nearly 30%. A strong job market, which has led to wages in Poland growing faster than the cost of living, can potentially boost both supply and demand. The latest inflation and GDP projection by NBP analysts predicts a 9% increase in wages for 2024. Adjusted for expected inflation, this results in a real wage growth of approximately 4.5%.
Costs of Apartments are still growing. Will Single-Family Home Construction Spur?
Interest rates in Poland remain elevated, with the reference rate currently set at 5.75%. Consequently, banks are offering mortgage loans with interest rates ranging from 7% to 8%. These rates make it challenging to consider building a single-family home, particularly for those on the cusp of their creditworthiness. Recent trends have shown that construction costs can escalate significantly during the building process. Traditionally, it was advised to add an extra 20% to the total estimated construction costs to cover unforeseen expenses. However, those who built homes in 2022 found that this safety buffer was insufficient, often needing 2-3 times that amount under particularly unfavorable conditions.
Despite these financial hurdles, the high cost of new apartments—especially when evaluating the price per square meter—may encourage some Poles to consider building single-family homes as a more viable option.
Is it worth moving to Poland in 2024, and who benefits the most?
If you are considering moving to Poland due to the low cost of living in Poland or the high level of safety, find out how I can help you make the move to Poland.
If you need help purchasing a building plot for a house, a English-speaking agent in Poland can assist you.
Price of building a house to a developer finish in 2024 in Poland by house area in square meters. Estimation based on construction costs in 2022.
Based on data regarding the cost of building houses by size in 2022, compiled from a survey by the portal rankomat.pl, and considering how average construction costs have changed between 2022 and 2024, where costs increased by 47% over these two years, it can be estimated that the house building costs in Poland in 2024, according to the house size, will be as follows:
- 100 m2: 502 000 PLN
- 140 m2: 602 700 PLN
- 195 m2: 690 900 PLN
