What are the current prices and conditions for buying real estate in Poland?

What are the trends in the real estate market in Poland after the pandemic?
Investing in real estate in Poland: opportunities and conditions

Rising house prices in Poland

Housing prices in Poland are showing exciting growth despite the negative effects of the pandemic. An interesting fact is that housing costs in Warsaw are still lower than in most other European capitals, which makes the real estate market in this country particularly attractive for foreign investors.

Live and experts

On March 10, 2021, in a live broadcast on the @com account, experts discussed the issues concerning the purchase of real estate in Poland, which are of concern to citizens of the European Union and CIS countries. The program was attended by highly qualified experts:

Alena Martynenko - Director of International Real Estate Platform
Galina Kharlamova is a leading specialist at East West Reals, known as the first Russian-speaking agency in Warsaw

Galina, who holds a master's degree in law in Poland, emphasized that her team not only helps clients find the right property, but also provides services in preparing all the necessary documents and permits for the purchase of commercial real estate.

Questions and answers

During the discussion, Galina answered many questions from the audience. She talked about the cost per square meter of housing both in Warsaw and outside Warsaw, as well as how to choose the right realtor. The participants opened such important topics as:

necessary documents for foreigners who want to buy real estate in Poland
which is a better buying option right now
What costs owners of real estate in the capital may face

The analysis of opportunities for obtaining a Polish residence permit and future investment prospects in the real estate market of the country was carried out.

Financial capacity and statistics

Experts also considered what financial opportunities the Polish real estate market offers and how they may be of interest to potential foreign buyers. For a deeper understanding of the process of buying real estate in Warsaw and nearby cities, it is recommended to watch the video of this broadcast.

During the discussion some statistical data were presented. As it turned out, among foreign buyers of real estate in Poland, the largest number are citizens of CIS countries and EU countries. To date, the minimum wage in Poland ranges from 2400 to 2600 zlotys, which is about 650 dollars. The average monthly income in the country ranges from 6000 to 6500 zlotys, which is equivalent to about 1600 dollars.

Prices per square meter and utility costs

It should be noted that the average price per square meter in new residential buildings in Warsaw districts is about 2400 dollars. For example, you can buy an apartment of approximately 27 square meters in a new building for about 67000 dollars. Utility bills for such an apartment are estimated at 180 dollars and include:

heating
water supply
electricity
elevator
garbage removal

Rental yield on real estate

In 2019, rental property in Poland had an annualized rental yield of 6-7%. However, with the onset of the pandemic, there was a sharp drop in demand for short-term rentals. Many apartment owners who previously rented out their properties for short periods of time began to switch to long-term rentals (one year or more).

As a result, the number of available apartments for long-term rent increased significantly, which led to a drop in rental prices. Today, rental yields are around 4-5%, which continues to attract investors' attention to the Polish market.

Real estate prices

Real estate prices currently remain stable and continue to grow. The purchase of various real estate properties does not bring any advantages in terms of obtaining a visa or temporary or permanent residence in the country.

Grounds for obtaining a temporary residence permit

There are several grounds for issuing a temporary residence permit in Poland, such as:

studies
labor activity;
starting your own business;
marriage to a Polish citizen;
origin (based on the Pole's map).

Investment at the initial stages of construction

Many investors are interested in investing in the initial stages of construction, when the project is still at the excavation stage. During approximately two years, while the construction of the project is underway, there is an increase in the cost per square meter. This dynamic allows resale of apartments at any stage of construction at a higher price segment.

Attractiveness of Warsaw for investments

Warsaw is confidently considered one of the most attractive cities in Poland for investment.

Remote transactions

In the context of the pandemic, many investors prefer to conduct transactions remotely. Most often, foreign buyers choose residential real estate, but if they wish to purchase land or commercial premises, they need to obtain a special permit from the Polish Ministry of the Interior. This authority thoroughly checks the buyer's ties with his home country and makes sure that there are no intentions that could threaten the strategic interests of the country.

Legal system for the protection of buyers

Poland has a well-developed legal system protecting the interests of clients in the primary real estate market. The funds do not go directly to the developer, but pass through a specialized trust account. The bank controls the construction process and checks the compliance of all necessary documents, sending money to the developer only after confirming their legality.

Registration process

Immediately after signing the contract with the developer, it is subject to registration with a notary in the unified state register. The price per square meter is fixed in Polish zlotys, and the developer is not entitled to change it or compare it with foreign currencies.

Acquisition of commercial real estate

For those who are already in Poland, the purchase of commercial real estate becomes more affordable. In this case, citizens have the opportunity to obtain a mortgage loan with an interest rate in the range of 2-3% per annum.

Conditions for obtaining a mortgage loan

If the alien wants a loan on similar terms, he or she must provide:

a valid residence permit;
tax identification number;
residency in the country;
proof of stable income.

He will also need to make a minimum of 10% of the value of the property as a down payment. This loan is suitable for both the purchase of a new home and the purchase of a secondary home. In addition, the cost of the loan may also include the cost of repairing the property.

Conclusion

Concluding my article, I would like to emphasize that the real estate market in Poland, despite the difficult economic conditions, continues to show steady growth. Attractive housing prices, especially compared to other capitals of the European Union, make Poland a real magnet for foreign investors and buyers. Leading experts, such as Galina Kharlamova, prove in practice that buying real estate in the country is possible not only from a legal point of view, but also from the point of view of investment attractiveness.

Investment attractiveness

Interest in buying in Warsaw and its surroundings is not waning, and, in my opinion, this is due not only to the prices but also to the high quality of life in this city. Developing infrastructure, the presence of good educational institutions, as well as a stable rental market create conditions for the growth of real estate values. As we have seen, the benefits of investing in housing at the construction stage can be significant, which adds an additional incentive for investors to the figures.

Protection of consumer rights

In addition, the existing system of buyer protection introduced in the primary market makes it possible to feel confident and protected when making transactions. I cannot help but note that the pandemic has also played a role in changing the preferences of buyers, many of whom have started to choose suburban options that offer space and comfort for reasonable money.

Conclusions

Thus, if you are thinking about buying real estate in Poland, rest assured:

You have the opportunity to invest profitablyinto a promising market.
The market continues to evolveand attract attention at the level of the entire European Union.
Getting professional helpfrom the experts makes the process much easier.

I hope this article and this broadcast will help you make the right decision and deal with all the nuances of the buying process.