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Locations - Krakow

Historic and beautiful city

Krakow is extremely beautiful, and having somehow survived World War II almost intact, it has been listed as one of the 12 most important historical cities in the world. It is full of lavish Renaissance-style buildings, most notably the stunning Wawel palace. It is a year-round city-break destination and a thriving business centre.

Dynamic residential market

After Warsaw, Krakow is the most dynamic residential market in Poland. It is seeing a considerable increase in the amount of new-build activity, as well as a rush of investors who may feel that the central Warsaw market is starting to look slightly overvalued and are looking to take advantage of Krakow’s cheaper prices. Unlike Warsaw, the Krakow market has, until recently, been dominated by local developers, but this is starting to change. The city has no overall master plan for development, which is resulting in the average size of schemes increasing in terms of units built. Investor demand has meant that most new schemes are sold off plan or during the early stages of construction.

Strong local demand for rentals

The most sought-after apartments are usually around 50 sq. m. and located in three- or four-storey blocks in the Srodmiescie, Grzegorzki and Krowodzre districts. Units such as these are very sought-after by the local rental market, and thus can produce a solid yield. Expect to pay prices from 2,500zl per sq. m. for unfinished units in the suburbs to 6,000zl per sq.m. for finished apartments in better areas. The very best apartments in central locations can command up to 13,000zl per sq. m.

Additional foreign demand

Krakow also sees a large number of foreign employees working for multinational FDI companies attracted by tax incentives offered in the city’s Special Economic Zone, and this is also an attractive rental market for the property investor. Supply of new units cannot keep up with the current demand so prices are rising steadily, offering considerable capital gains for investors. Newly completed apartments saw a rise in value of 10 – 20% in 2006 depending on their location, and this upward trend shows little sign of abating. Indeed, many observers are forecasting a considerable leap in prices when Poland eventually adopts the euro.

Related items

Documents and Reports

	Poland property investment report (420Kb)
	Poland property guide (1Mb)
	Poland country guide (941Kb)
Documents and Reports

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