Despite the fact that Poland has been visited by tourists from Russia, Ukraine and Belarus for many years, and citizens of the latter two countries regularly travel to work and shop, they very rarely purchase real estate here. Previously, this was explained primarily by the rather complex procedure for carrying out a purchase and sale transaction, which was eventually simplified, by the relatively small number of resorts and by the fact that Poland is one of the most mononational states in the world. Almost 97% of the population consider themselves Poles by nationality, and almost all of them are Catholics by religion.
Of the foreign investors who decide to buy property in Poland, the majority are German residents, for whom local housing represents either a “second home” or an investment in the medium or long term. However, due to the fact that more and more tourists, students and qualified specialists employed under contract are coming to the country, renting apartments and houses – both daily and long-term – is also in demand. For example, if you rent out an apartment in one of the most comfortable areas of Warsaw, you can count on an income of 5.5-6.5% per annum.
The Polish real estate market demonstrated stability during the global financial and economic crisis of 2008-09, after which it recovered quite quickly and continued its development, albeit at a slower pace. The situation was similar during the coronavirus pandemic, which did not hit the Polish economy as hard as other countries.
By the summer of 2020, the average cost of one square meter of residential real estate in Poland was about 2100-2000 euros, and in the country’s capital it is significantly higher than this figure – especially in areas such as Sremiescie, Mokotów, Nowo Miasto or Bialoleka. However, on the secondary market it is quite possible to find a two-bedroom apartment for no more than 120 thousand euros. Warsaw attracts foreigners primarily due to its developed infrastructure, good transport links, a large number of large international companies and the presence of a number of educational centers.
The second most important city in Poland is Krakow, which is very popular among students who come to study at the local university – one of the oldest in Eastern Europe. You can buy an apartment in Krakow at an average price of 1500-1600 euros per 1 sq.m., while the rental price is not much inferior to Warsaw. This is followed by Gdynia, Gdansk and Sopot located on the Baltic Sea coast, where this figure varies between 1400-1500 euros.
In the central part of the country, only Lodz attracts the attention of foreign investors, where the average apartment will cost almost twice as much as in Warsaw. However, renting out such real estate will be very difficult, since this region is located at a distance from the main tourist routes.
From this point of view, Polish ski resorts, which are concentrated in the south of the country, may be of interest. Most of them are located in Zakopane, Karpacz and the Tatra Mountains, where townhouses and detached houses with plots of land and garages are in greatest demand. Objects of this type cost an average of 300-350 thousand euros, and during their absence the owners can rent them out quite profitably.