Poland’s housing market is still developing
Poland’s housing market is still developing; prices are lower than in other European countries for comparable properties and the inventory is smaller. As the Polish economy performs well, a wealthier population has been increasing demand for luxury homes in Warsaw and in other cities and resort areas.
In Warsaw, prices for all types of apartment developments are higher than in the rest of the country, according to a 2015 report about Warsaw’s luxury residential market issued by KPMG. Yet a luxury apartment in Warsaw might cost three to four times as much in Paris.
Warsaw, which has an official population of 1.7 million has few pre-war buildings. Starting about 20 years ago, developers began constructing buildings aimed at affluent buyers. The first projects were small infill buildings, followed by luxury towers about a decade ago.
Prices for luxury properties have been stable since around 2013. However, the volume of transactions has risen, as a handful of prestigious high-rise developments expanded the inventory at the market’s high end.
The luxury market for new construction is still small so sales in individual buildings can have an effect on price trends.
In the luxury market, 90 % of purchases are financed with cash.
Compared with many other countries in the European Union, Poland’s housing prices are still attractive. The residential property tax is relatively low in Poland.
Foreigners who live in Warsaw for work are inclined to rent. The vast majority of luxury homes are being sold to wealthy Poles.
However the share of foreigners buying high-end homes in the city has been growing over the last two or three years. These buyers have been coming from the United States, Western Europe and Dubai, and they tend to have connections to Poland, they have family there, or are of Polish origin.