Innovative property investments
Investment property in Poland
Buying Guide
Property Overview
Demand for long-term city rentals
The attraction of the Polish property market for the vast majority of western buyers is purely as an investment opportunity.
The country’s main cities have a real problem with housing undersupply, and this combined with a steadily growing economy creating a new breed of middle class Poles and deteriorating existing housing stock, much of which was poorly built during the communist era, create the possibility of excellent returns for canny investment buyers.
Off-plan buying favoured
Most buyers seem to be opting for off-plan apartments for long-term rentals, either to the local market or to ex-pat workers who have moved to Poland to work for one of the many FDI arrivals.
Buying hotspots
Warsaw and Krakow have been the two biggest markets, but some analysts think Warsaw is now overpriced and point to the emergence of second tier cities such as Poznan, Wroclaw and the Gdansk/Tri-City area as offering the best potential returns on capital.
All of these cities have a shortage of suitable housing for the local populace.
Purchasing prices
Off-plan apartments in the suburbs of Warsaw, aimed at the local rental market, can be picked up from around 40,000 GBP for a one-bedroom unit.
In the city centre, large apartments in the best areas can sell for up to 500,000 GBP.
Prices in Krakow are on average around 25% cheaper for comparable units, with other cities offering still lower prices.
Ski holiday lets
The notable exception to the trend for buying investment apartments in Polish cities is the surge in interest in the ski resort of Zakopane in the Tatra Mountains, where westerners are buying holiday homes and concentrating on short-term holiday lets rather than long-term rentals for the local market.
Countryside renovation
In the rural areas of the country, there are thousands of derelict properties suitable for renovation at extremely cheap prices.
However, due to the cost and difficulty of renovating these, there is no real market for them as yet.
No restrictions
Foreigners are entitled to buy land, buildings and apartments on a freehold basis in Poland.
Key facts
- Foreigners are entitled to buy land, buildings and apartments on a freehold basis
- Buying off-plan city apartments is popular
- Long-term rental potential exists in the main cities due to the undersupply of housing; a poorly built, deteriorating housing stock and growing Polish middle class and ex-pat populations
- Warsaw and Krakow have been the two biggest market
- Poznan, Wroclaw and the Gdansk/Tri-City area now offer the best potential returns
- Zakopane ski resort in the Tatra Mountains has short-term holiday let potential
- Renovation of the many cheap derelict properties in the countryside is a market yet to be exploited
Downloadable Reports and Documents
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