What's new on the real estate market in Poland?

Poland has been considered one of the most overpopulated countries in the EU for a long time — a 2019 study points to this. This year, the housing issue in the country is even more acute. What is happening in the real estate market in Poland now, with high inflation and an unprecedented influx of refugees? Yanina Dovzhenko, an expert on real estate in Warsaw and founder of YD.Invest, shared with us detailed information on this subject.

If we talk about the sales market — now it’s a buyer’s market

— Housing prices in Poland are gradually decreasing: if in March the price per square meter of apartment was 2 349 USD, then as of July 2022 this figure is already at 2 215 USD. Buying power has also declined: in June this year in Warsaw, Kraków, Wrocław, Poznan, Łódź, and Gdańsk were sold a total of 2,485 apartments, which is 56.6% less than the same month last year.

Several factors contribute to the drop in prices and less buyer interest in buying real estate:

• Rising interest rates. This has significantly reduced the availability of credit and creditworthiness of Poles. As a result — less interest from customers and, consequently, lower prices. 
• High inflation. In June the annual inflation in Poland rose to 15.6% — for comparison, in May the figure was 13.9%.  

Because of this economic uncertainty, Poles have begun to postpone decisions about any real estate transactions en masse. It is no longer a seller’s market — it is now a buyer’s market.

About demand. The most popular are one-bedroom apartments/studios: the price per square meter is higher, but the average cost is relatively affordable (from $100 thousand). It is also noted that people are always more willing to go to the primary real estate market, as such housing in Poland is built quickly. By the way, more people from neighboring countries, mostly the citizens of Belarus and Ukraine, became interested in the Polish real estate. They sell housing in their homeland and buy here for life or as an investment. 

When it comes to mortgages, the main requirements for obtaining one are having an employment contract and a down payment. For those who do not have enough savings for this contribution, there is also an option. The fact is that in Poland since May 27 of this year, came into effect a program that facilitates the process of obtaining mortgages for the purchase of apartments, houses, or construction. You only have to confirm your creditworthiness — you do not have to pay anything upfront. There are no age restrictions, foreigners can also take part in this program. 

The requests for rent are so many. As I say — an avalanche

The situation on the rental market in Poland remains critical. In recent months, there have been a lot of inquiries. As I say — an avalanche. The demand for apartments for rent in Warsaw is still at its peak. The most difficult months are ahead: August and September were always «hot» in this regard because of internal migration and the influx of students. 

The main problem is that the demand is enormous, but there are very few offers on the rental market. If affordable housing does appear, most of it does not reach the market, but passes from hand to hand.

As for the rent prices, it is hard to say anything definite — they are quite chaotic. There are options below the market price, and there are overpriced numbers. Another increase in interest rates and inflation has increased pressure on the rental market, which is already experiencing it because of the influx of Ukrainian refugees arriving since February 24.

Every apartment viewing is like a little interview

Landlords are becoming more and more demanding, and their selection criteria often remain a mystery. Therefore, decisions in favor of this or that tenant can be made on the basis of different considerations: someone offered more to the rent, someone trivially liked it, and someone was simply the first to view. As for foreigners, the process of renting property in Poland is more difficult for them, they are very often refused. 

In recent months, every apartment viewing is a kind of small interview, for which you need to prepare. In this process I especially like to observe the owner and the tenant: if they look alike, then as a rule — the casting has passed. But you don’t need to overdo it either — the main thing is to be yourself.

I also want to emphasize that you can only rent a place on the spot — apartments rent quickly, remote rental at this time is not in the interest of the landlord.

Apartment options in Poland under $100,000

1-bedroom apartment 34 m² in Warsaw

These cozy apartments are located in a modern complex, Riviera Park, built in 2020. It is rich in all sorts of amenities — a large playground, outdoor gym, tennis court, barbecue area, etc. There are also no problems with transportation — you can get to other parts of Warsaw quickly and comfortably. 

Now, about the apartment. This one-bedroom apartment has an area of 34 m², a big plus is that it has a terrace and a garden of 20 m². Everything you see in the photo is included in the price of the apartment. So you get a fully furnished apartment with all necessary appliances, audio, and TV equipment. If you want to have your own parking space, it comes with the apartment, but for an additional fee of 35,000 PLN. 

Price — €92,738.

2-bedroom new building in Gdańsk 

In front of you is a 35 m² new building in the new Neo Jasień complex. The complex consists of two buildings, each of which has 5 floors. The infrastructural part of the complex includes a playground, individual parking spaces, a bike room, etc. Deadline for delivery of apartments — the fourth quarter of 2022. 

The complex is located in Yasen district. Its territory has many green areas in the form of parks and ponds. Also, nearby there are grocery stores, pharmacies, numerous wholesale stores, workshops, etc. With Gdańsk, this area is connected by numerous bus services. 

The cost — €74,388.

3-bedroom apartment in Poznan

According to the ad, this sunny 3-bedroom apartment is located in the most crowded and beautiful area of Poznan — Pentkovo. In the nearby green areas and nature reserve Zhuravinets you can get a portion of relaxation and admire beautiful sunsets. It is also noted that this is a great area for runners, cyclists, and hikers.  

The apartment includes 3 rooms, a bathroom, separate toilet and kitchen. As the seller points out, the layout of the apartment is perfect for a family: it’s on the 1st floor of 10 with a total square footage of 63 square feet.  

The price of such a triple is $80,856.

Do you want to buy an apartment in Poland? Go to the section «Property in Poland» and choose from thousands of options that will suit you.