Poland eyes no signs of property overvaluation, price increases in line with income growth - MinFin
There are no signs of property overvaluation, price increases are in line with household income growth, Poland's Ministry of Finance assessed in its annual study ‘Convergence Monitor with the Economic and Monetary Union’.
The finance ministry confirmed that the property market is characterised by strong price growth. Property prices grew at a significant pace in 2023, by 8.8 percent, and accelerated to 17.7 percent in the second quarter of 2024, against a backdrop of rising demand for housing, as well as additional mortgage support for first-time buyers adopted in the period of run-up to the 2023 general election.
"However, there are no signs of an overvaluation of property, as real estate price growth has been broadly in line with household incomes since 2013," the ministry reported.
"A slowdown in the supply of new housing could support further increases in nominal house prices," it added.
In terms of financial stability risks, Poland's Ministry of Finance pointed out that in February 2024, the European Systemic Risk Board stated that the residential property market in Poland is subject to medium risks and the macroprudential policy mix is appropriate and sufficient to mitigate the situation.
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