The development of cities is accompanied by growth of the real estate markets within the suburban zone of the municipal urban area. This is the zone functionally related to the core city, where the processes occurring in the property market result primarily from decisions taken by city dwellers concerning the choice of their place of residence. This is reflected in completed transactions, which influence demographic changes. Therefore, the property market becomes a reflection of urbanization processes taking place in this area. The conducted research concerns an analysis of the property market in the suburban zone of Olsztyn of building plots, single-family houses and residential premise segments in the context of demographic changes. The results of the research present the dynamics and directions of development of the suburban zone. The period of research covers the years of 2007-2015, and the spatial scope covers the level of communes and the surveying sections they are composed of (villages). , functional areas include, among others, the functional urban area of the provincial center, which should be understood as the type of functional area including the town where the provincial government authorities or the province governor is located, and functionally related immediate surroundings making up the suburban zone. Intensive suburbanization processes occurring in this zone bring many unfavourable phenomena, including the effect of urban sprawl on previously undeveloped areas. This involves significant economic costs related to supplying utility infrastructure and communication services, and environmental effects related to the shrinking of open areas and great changes in the traditional rural landscape. Urban sprawl is the outcome of demographic pressure and certain space limitations within the administrative boundaries of the core city, as well as of the location decisions undertaken by its population, choosing the suburban zone for their place of residence. A collective decision, made of individual decisions of individual households, determines the directions of development for those areas, which is reflected in changes in the local property markets, particularly in the segment of residential properties. This submarket concerns transactions in building plots, single-family houses or residential premises. The spatial development of the town is therefore the effect of individual and collective appropriation of space (DIELEMAN and WEGENER 2004) and city dwellers buying properties situated in a specific location in rural areas