In Warsaw, the average price for a 55-square-meter apartment now equals 92 monthly gross salaries, according to data published by the Rzeczpospolita daily.
A recent analysis by the real estate platform RynekPierwotny.pl reveals that for someone earning the average salary in Poland’s enterprise sector (just under PLN 8,190 gross in August – USD 2,081), it would take approximately nine years to save for a new apartment—assuming they could save their entire paycheck, which in reality, is unlikely.
"In practice, saving for a home would take much longer because no one can set aside their entire salary. Additionally, it’s uncertain how property prices or wages will evolve in the future," explained Marek Wielgo, an analyst cited by Rzeczpospolita.
The analysis compared the average gross wage in the enterprise sector with the cost of a new 55-square-meter apartment. In August 2023, the price of such a property in Warsaw’s developer market was equivalent to 92 months of an average gross salary. This figure has steadily risen, from 88 months’ worth of salary in 2022 and 84 in 2021.
Other cities are also feeling the pinch. In Kraków, the average apartment price equals 84 months' salary, the same as last year but up from 75 months' salary in 2021. In Gdańsk, the price is now equivalent to 78 months’ salary, compared to 76 in 2023 and 73 in 2022.
“The purchasing power of customers has shrunk across all major cities. Residents of Warsaw are in the worst position,” Wielgo emphasized.
As housing prices continue to rise, demand has cooled, according to Rzeczpospolita. Many potential buyers are waiting for the launch of a government-backed program offering affordable loans to first-time buyers. However, the outlook for housing affordability in Poland’s largest cities remains bleak, with little improvement on the horizon.
(jh)
Source: PAP, Rzeczpospolita