Poland Approves Increased Social Housing Budget, Pledges Up to USD 1.3 Billion in 2025

Poland social housing

Poland: Poland’s government has approved a bill to increase social housing spending to at least 2.5 billion zloty (USD 650 million) in 2025, with a potential cap of 5 billion zloty (USD 1.3 billion). This marks a significant rise from the 1 billion zloty (USD 260 million) allocated in 2024. The initiative, led by Development Minister Krzysztof Paszyk, aims to provide stable financing for social housing by offering non-repayable subsidies to local authorities and investors for new housing construction and renovation of vacant properties. The program seeks to support the development of up to 15,000 social housing units this year, with subsidies covering up to 80% of project costs.

Poland has been grappling with a severe housing crisis, with a shortage of up to two million units and some of the highest property price increases in Europe. Deputy Prime Minister Władysław Kosiniak-Kamysz emphasized that the proposed spending for 2025 is a minimum, with an annual allocation limit set at 10 billion zloty (USD 2.6 billion) until 2030, totaling up to 45 billion zloty (USD 11.7 billion). The bill, pending parliamentary approval and presidential sign-off, would more than double funding for municipalities compared to 2024. Between 2015 and 2019, the previous government financed the construction of 7,731 apartments with 982 million zloty (USD 255 million). Additionally, Poland’s National Development Bank (BGK) had allocated 4.5 billion zloty (USD 1.17 billion) over the decade leading to 2025 for residential housing investment. The proposal comes amid coalition disputes over budget allocations, with Regional Policy Minister Katarzyna Pełczyńska-Nałęcz recently alleging funding cuts, which Paszyk denied.

Source: Notes from Poland