Poland has been experiencing a house price increase and a rent hike for the past decade. Poland’s economic growth has contributed to the surge in property prices, and the trend is expected to continue. The country’s real estate sector currently offers a lot of investment opportunities for both local and foreign investors. As a result, this article aims to explore the current situation of the housing market in Poland and potential investment opportunities.
Trends in House Prices and Rent
The Polish housing market witnessed a significant price boom between 2014 and 2019. According to the National Bank of Poland, the country’s real estate prices increased by 75% during this time. However, the COVID-19 pandemic has somewhat slowed the pace of the growth rate, but it is expected to continue rising mildly in the foreseeable future.
The average house price in Poland is approximately €135,000, with prices varying depending on the location and the size of the property. The prices for the urban areas are higher than those in the rural areas. Moreover, house prices in metropolitan centers such as Warsaw, Krakow, and Gdansk are the most expensive.
The increase in housing prices has also resulted in a corresponding rental price hike. According to the Rental Market Report conducted by REAS, an estate agency network, the average rental price for a one-bedroom apartment in Poland rose by 23.4% between 2015 and 2020. In 2021, tenants can expect to pay between €400-€900 per month depending on the location of the property. The rental price is higher in big cities than in smaller towns or rural areas.
The housing market in Poland offers numerous investment opportunities, from purchasing properties for resale, investment purposes, or renting. Firstly, investors can purchase properties for resale and target foreign buyers. The country has seen a rise in the number of foreigners looking to buy properties. Polish properties are more affordable than similar ones in Western Europe.
Secondly, investors can purchase properties for rental purposes. This option is appealing due to the rental price hike, making it an ideal long-term investment. Some major investors are looking for serviced apartments, which offer a higher yield and regular income.
Lastly, there is an opportunity to invest in commercial properties. Real estate development companies such as Echo Investment and Immobel Poland are now investing in office and commercial spaces, with many foreign investors showing interest in these developments.
Q. Are there any government regulations on investing in Polish real estate?
A. No, there are no significant restrictions on foreign property owners in Poland.
Q. Can foreigners take out a mortgage in Poland?
A. Yes, foreigners can apply for a mortgage in Poland.
Q. Is investing in Polish real estate profitable?
A. Yes, investing in Polish real estate can be profitable, especially for long-term rental purposes, and the country has many investment opportunities for both local and foreign investors.
Q. How can I purchase a property in Poland?
A. The process of buying property in Poland is similar to other European countries. You will need a good lawyer and speak to a real estate agent before purchasing any property.
Q. Is the rental market still lucrative in Poland?
A. Yes, the rental market is still lucrative in Poland, and the rental price is expected to continue rising in the foreseeable future.
In conclusion, the rise in house prices and rent in Poland has offered numerous investment opportunities to both local and foreign investors. The country’s growing economy and stable political environment have made it an attractive destination for real estate investments. The Polish housing market is expected to remain profitable, especially for long-term rentals and commercial property development. If you are interested in investing in real estate in Europe, Poland is a good option to consider.