Our data comes from a review of the major property portals and is adjusted for outlying or plainly incorrect adverts.
As we have noted in recent articles, the Polish property market has held up despite the pandemic. The demand has changed in terms of size and location of properties but prices, despite an early wobble, have remained steady.
We would caveat these numbers, however, a small bit. They represent offer prices and, while anecdotal evidence would suggest there are no huge discounts available on either sale prices or rentals, we simply do not believe that Krakow in particular is representative.
There is certainly buying demand for apartments but the rental market in Krakow is no where near its past peak. Krakow is a student/ tourist town and both of these sectors have vanished. We suspect that many landlords have taken their properties off the market rather than get locked into smaller rents and are awaiting the end of lockdowns.
Despite all of this, the Polish property market continues to show stunning returns versus other European cities. The economy is forecast to be amongst the best in the EU and while inflation is a concern, (which only helps house prices), increases in mortgage interest rates are not expected soon.
Gimme' the numbers
When you consider that mortgage costs per 100,000 borrowed have plummeted from above zl.400 p.m. last year to zl.300 today* and prices have remained constant, you may need to adjust your perspective on value.
The average rent in Warsaw today stands at zl.4,250 which would pay a mortgage of zl.1.4 million approx. Adding your required cash deposit and you could expect to be able to buy a property for zl.1.75 million. Today, the average price of an apartment in Warsaw is zl. 865,000. Even if those mortgage costs are a bit ambitious, and we suspect they are, there is still plenty of room for upside.
Warsaw doesn't look so expensive after all. Lodz and Wroclaw look pretty good too.