Polish property bubble

Between June 2006 and June 2007 the average price of one square metre of residential area in Warsaw rose from 6,683 PLN (1,636 EUR) to 9,540 PLN (2,519 EUR), or 50% in euro terms.

[1] A peak in prices occurred in autumn 2008 as the average price of a square meter of residential space in Poland started to drop by 5% in nominal terms or 10% per year in real terms.

[3] In early 2007, it can be argued that the Polish property market began to show the early signs of a property bubble: [2] As of 2013, house prices in Poland have been falling since mid-2008.

Compared to pre-crisis peaks:[2] The arguments for further real estate price rises or stabilization are: In addition, Warsaw has a population of only 2 million people – approximately 5% of the whole of the country – which is very low for a capital city.

[4] Poland is also one of many countries with a rather high house price to income ratio (13.58) and an estimated rental profitability between 3.92% to 4.31% for residential units.