Research background and purpose:
This article examines the transformations within the Polish residential real estate market during the COVID-19 pandemic, the ongoing conflict in Ukraine and the implementation of the government’s “Safe 2% Loan” program. The study sought to elucidate how macroeconomic factors, alongside elements of behavioral economics, have shaped the dynamics of housing prices and influenced borrowers’ decision-making processes. The primary objective of this paper was to assess the effectiveness of the program in enhancing mortgage accessibility and stimulating demand in the housing market, with particular attention given to the psychological mechanisms at play, such as the endowment effect, fear of loss or herd mentality.

Design/methodology/approach:
The methodology of the study was developed through a synthesis of literature analysis and case study research, enabling a comprehensive examination of the phenomena occurring within the residential real estate market. In the theoretical phase, a critical review was conducted of relevant publications and reports addressing both economic factors and behavioral determinants that influence the decisions of investors and buyers. Subsequently, a case study was undertaken, utilizing selected indicators to assess their impact on the Polish real estate market. This research strategy facilitated the testing of the hypothesis that behavioral factors were the primary drivers of housing price growth in Poland between 2019 and 2024.

Findings:
The results of the study indicated that the implementation of the „Safe 2% loan” program significantly increased mortgage demand, which, in turn, led to a sharp rise in housing prices, particularly in areas with a high concentration of investors. Furthermore, the analysis revealed that behavioral factors played a crucial role in consumers’ financial decision-making processes.

Value added and limitations:
This study contributes to a deeper understanding of the intricate dynamics of the Polish real estate market by integrating traditional macroeconomic analysis with a behavioral economics perspective. The limitations of the study arise from the short-lived nature of the „Safe 2% Loan” program, which has hindered a comprehensive assessment of its long-term effects.