Poland: Europe’s active real estate market
The housing market in Poland today has become a “dark horse” against the background of other countries of Eastern Europe, which at first glance attract most of the attention of foreign buyers, but at the same time, demand for real estate in Poland continues to grow, attracting investors from all over the world.
Poland in recent years has become a major logistics center in Europe, thanks to which the country’s economy has developed rapidly. Many foreigners began to move to this country because of good living conditions, which are ensured by loyal laws, not the highest tax rates (one of the reasons why German entrepreneurs open their branches here), a fairly simple procedure for issuing residence permits and subsequent citizenship, which also makes it possible to obtain a mortgage.
Poland also attracts many international youth: there are a large number of universities where you can get a high level education. Therefore, many international companies are now planning to invest primarily in student housing in Poland, and only then – in the Czech Republic and Hungary.
In 2018, for only one quarter in the largest cities in Poland – Warsaw, Gdansk, Gdynia, Krakow, Lodz, Poznan, Wroclaw – the average cost of real estate increased by 7%. Experts call the housing market in Poland is no longer developing, but one of the largest in Europe, and even prophesy the increased attention of international companies that, as a result of Brexit, will leave the UK for Polish cities. Investors are expected to have high chances of good liquidity in the near future. True, Polish political instability also has a place to be, however, this does not affect the local housing market globally yet, so the current situation can be called optimistic from all sides.
Today, any Polish real estate is in demand: in cities and suburbs both apartments and small houses with land, and resort real estate on the Baltic coast, as well as commercial square meters are in demand. The most popular was the purchase of housing, which will subsequently be leased.
In Poland, times have passed when investors bought several apartments and were independently engaged in organizing finishing work, buying furniture, finding tenants – now all these concerns are taken over by large operators. In Poland, impressive hotel-type residential complexes are being actively built both in large cities and in the central zones of the most popular resorts of the Baltic coast.
By purchasing apartments in such complexes, the investor not only gets them into ownership, but also concludes a contract for 10 -20 years with a guaranteed income of 7% per year. At the same time, the owner does not have to worry about minor malfunctions that periodically occur in any housing, and also does not think that the tenant has moved out and needs to look for a new one or take care of cleaning, replacing equipment and other trifles – all this is done at the expense of the management company .
The owner decides when he wants to come and live in his apartment, and when to rent it out. As for cities, Warsaw, Krakow, Poznan and Gdansk are recognized as the most popular cities for investment today. Warsaw is a leader because it is the capital where key events take place and most of the country’s business life is concentrated. Krakow is a tourist destination that is beneficial for investing in hostels in hotels. Poznan is a city of business opportunities, it is located almost in the middle between Berlin and Warsaw, so most foreign firms are localized here. Gdansk has the glory of a beautiful port city, attracting investors from many countries.
Warsaw leads the national ranking in terms of real estate prices: one square meter in the Polish capital costs 2158 euros. Such a rise in price experts explain the increase in demand, lack of supply, increased costs for the construction of real estate, as well as the closure of the program for young families in January 2018. The cheapest real estate in Poland can now be purchased in Wroclaw for 1,483 euros per 1 sq.m.
In recent years, the share of foreign investors in Polish real estate has increased significantly. The leaders among buyers of local square meters were citizens of Ukraine, Germany, France, Holland, Great Britain and Belarus. The interest of citizens of Cyprus, Luxembourg, and Israel is growing significantly. Citizens and companies of Belarus for the first time entered the six largest real estate buyers last year, setting an economic record for investments in this segment of the economy of a neighboring country.
Representatives of Germany and France buy a lot of commercial real estate and place their manufacturing enterprises, warehouses, business centers in Poland.