When deciding where to buy (or indeed if to sell) a property there are many ways to indicate where prices are heading and indeed the best city to find value in. For this article, we are going to look at salaries vs. price. Whilst we would never suggest you look at only one statistic when deciding where to invest we believe it is a good starting point when looking for value in the Polish property market.
First a couple of basic facts. Currently a Polish mortgage will cost you zl. 400 per zl. 100,000 borrowed (approx.) and the Banks don't want you borrowing more than you can afford to repay each month. This therefore puts a ceiling on how much a local worker can pay for a square meter(M2) of property.
CW Wealth Management recently reported in CEO World Magazine a list of earnings per population for the main Polish cities. They have reported these numbers in USD and don't stipulate whether they are gross or net of taxes - We would think gross. Additionally, they do not explain their methodology however we shall assume that if there are mistakes they are consistent. We will use the USD/PLN rate of 3.85.
For property prices we have used the average price of 1 square meter as per the top three property portals in each city.
Essentially the chart shows what percentage of your monthly salary it would take to buy 1 sqm of a new apartment development.
From the chart we can see that while Rzeszow holds top spot Warsaw still, despite the higher relative prices, is worth looking at as an investment location.
With demand continuing apace, salaries continuing to rise and the relatively low levels of mortgages in the polish property market it is possible that these percentages could move even further north in the future if we look at them in isolation. Of course there are many other factors that should be used to influence your decision and we will cover those in future articles.
And remember, if you do need polish mortgage advice, use BigDoor24 to find an advisor who speaks your language and we will pay you zl. 200 for every zl. 100,000 successfully borrowed.