An overview of the real estate market in Poland

In 2004 Poland joined the European Union, which became an important factor for foreign investors. The country's economy grew by an average of 5% per year, and real estate prices in Poland rose by 10% annually, and this figure was even higher in large cities. Before the crisis, the growth of the country's real estate market was ensured by the economic recovery. Despite the activity on the part of European investors, the demand among Russians for real estate in Poland was low. According to the Global Property Guide, Poland's economy is now the sixth largest in Europe, but despite this, the real estate market indicators have declined under the influence of the crisis. The European Commission predicts the country's economy will grow by 2.5% in 2012, while Germany, which is considered one of the strongest in Europe, is expected to grow 0.6%. How to get from Russia Direct regular flights from the capital of Russia to Warsaw are operated by Aeroflot and LOT Polish Airlines. The flight takes about two hours. Since April 26, 2012, Aeroflot Airlines has launched regular direct flights from Moscow to Krakow . Flights are operated four times a week - on Tuesdays, Thursdays, Fridays and Sundays. In addition, direct flights to Warsaw are operated from St. Petersburg and Kaliningrad by LOT Polish Airlines. Real estate market After Poland's accession to the European Union in April 2004, the country's real estate market began to boom, and property prices began to rise. Prior to that, the indicators were quite stable. Thus, according to the data of a large Polish consulting company REAS, in 2005 real estate in Warsaw rose by 23%, in 2006 - by 28%, in 2007 - by 45% and in 2008 - by 13%. During the crisis, the fall in prices in Poland was not sharp, but it turned out to be quite significant. Rising unemployment and tightening mortgage lending conditions reduced the demand for home purchases in the country by 30-40% compared to 2007. Prices for urban housing fell by 16%, and resort real estate prices fell by 25%. But, despite this, experts believe the chances of the Polish housing market coming out of the crisis are higher than those of neighboring countries in Eastern Europe. Foreigners are more interested in earning income from renting out Polish real estate. Due to the high domestic demand for high-quality real estate rental, not only housing in Warsaw and Krakow, but also in other parts of the country, is popular. The main engine of the market is the actively growing middle class, thanks to which the demand for both rental and purchase of housing is increasing. In such large cities of Poland as Warsaw , Krakow, Wroclaw, Gdansk, Poznan and Lodz, about half of the proposals of the entire real estate market of the country are concentrated. According to REAS, in Warsaw in 2011 the average cost of secondary housing decreased by 6.6%, in Krakow - by 5.53%, in Poznan - by 4.5%, in Lodz - by 5.46%, in Gdansk - by 3.4%, in Wroclaw - by 8.4%. Compared to the peak in 2007, the cost of housing in Warsaw decreased by 13.6%, in Krakow - by 11.8%, in Lodz - by 17.9%, in Gdansk - by 25.2%, in Wroclaw - by almost by 32% and in Poznan - by 44%. There are many new unsold properties on the market. In 2011, the number of completed but unsold projects increased by 11%. Now the number of new proposals exceeds demand, but experts predict that in the second half of 2012 the balance between the number of sold and launched objects will be restored, but the supply will prevail for a long time. The rental market in Poland is not very active right now. Rents across the country began to decline since late 2009 and have remained flat over the previous three years due to oversupply, especially in the luxury housing segment. According to the Global Property Guide, in April 2011 the average monthly rental rates in prestigious areas in the center of Warsaw ranged from € 14.08 to € 15.41 per sq. m, in Krakow - 11.53 to 8.64 euros. Geography of the offer In Warsaw, most of the modern residential buildings are located on the western bank of the Vistula River. In the eastern part of the city, there are still buildings characteristic of the Soviet era. The prestigious districts of the city include Bialoleka, Vesola and Ursunov. Two-bedroom apartments are the most demanded for rent here, their cost is about 200,000 euros. In Krakow, areas such as the Old Town and the Jewish Quarter are especially popular for buying and renting housing. One-bedroom apartments in Krakow cost from 150,000 euros. In such districts of the city as Rakovice, Klepaz and Debniki, located in the southwestern part of the city, the cost of a studio apartment starts from 70,000 euros, the cost of a two-bedroom apartment - from 120,000 euros. Lodz is the second largest city in Poland, located 120 km from Warsaw. The cost of one square meter in Lodz is 600-800 euros, which is almost two times less than in Warsaw or Krakow. The resort cities of Gdansk, Gdynia and Sopot, forming a single agglomeration, are located on the Baltic Sea coast to the northwest of Warsaw. Apartments in a modern residential complex just a few minutes walk from the beach can be purchased for about 200,000 euros. Real estate in the ski resort of Zakopane in the Tatras, acquired during the construction phase, can bring a good profit. Renting out properties in a ski center during the season can provide about the same income as in the capital. HomesOverseas.ru