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Everything you need to know before buying real estate is included in our Poland Property Pack
Poland's property market outperforms Hungary in rental yields, offers stronger economic growth, and provides more accessible mortgage financing for foreign investors. Warsaw and Kraków deliver apartment prices comparable to Budapest while generating higher returns.
Both markets experienced significant price appreciation over the past five years, but Poland's larger economy, urbanization trends, and established legal framework make it a more compelling choice for property investment in 2025.
If you want to go deeper, you can check our pack of documents related to the real estate market in Poland, based on reliable facts and data, not opinions or rumors.
Poland offers higher rental yields (4.0-6.5%) compared to Hungary (4.5-5.1%), with stronger economic fundamentals and more accessible foreign investment regulations.
Both markets feature similar apartment prices, but Poland's larger urban centers and demographic stability provide better long-term investment potential.
| Factor | Poland | Hungary |
|---|---|---|
| Average Rental Yields | 4.0-6.5% (major cities) | 4.5-5.1% (Budapest) |
| Apartment Prices (Major Cities) | €3,700-€4,900/m² | €3,150-€4,950/m² |
| Transfer Tax | 2% | 4% |
| Mortgage Rates (2025) | 7.8% | 6.56% |
| Foreign Buyer Restrictions | Minimal for apartments | Permit required |
| Urban Population | 22 million | 7 million |
| Price Growth (5 years) | 105% (Kraków) | 11.8-19.2% annually |
How much do apartments in major Polish cities cost compared to those in Hungary?
Polish apartment prices in major cities are slightly higher than Hungarian prices, with Warsaw and Kraków commanding premium rates comparable to Budapest's most expensive districts.
As of September 2025, Warsaw apartments average €4,300 per square meter, while Kraków ranges from €3,700 to €4,900 per square meter. These prices match or exceed Budapest's average of €3,150 per square meter, though new builds in Budapest can reach €4,160 per square meter.
Secondary Polish cities like Wrocław (€3,500/m²) and Poznań (€3,200/m²) offer more affordable entry points compared to Hungary's regional cities like Debrecen and Pécs, which range from €2,230 to €3,200 per square meter.
The price difference between the two markets has narrowed significantly over the past two years, with Polish cities maintaining their premium due to stronger economic fundamentals and higher rental demand.
It's something we develop in our Poland property pack.
What are the average rental yields in Poland versus Hungary right now?
Poland delivers superior rental yields compared to Hungary, with major Polish cities generating between 4.0% and 6.5% gross returns.
Kraków leads Polish rental yields at 6.5%, followed by Warsaw at 4.0%, while smaller cities like Radom can reach 7.5%. Budapest generates more modest yields between 4.5% and 5.1%, with the average gross yield hitting 5.06% in Q3 2025.
Polish regional cities consistently outperform their Hungarian counterparts, with cities like Lublin and Rzeszów delivering yields above 6% due to lower property prices and steady rental demand from students and young professionals.
The rental yield advantage in Poland stems from robust demand in university cities and growing tech hubs, combined with relatively controlled property price growth compared to rental rate increases.
How has property price growth trended in Poland over the past five years compared to Hungary?
Both markets experienced exceptional price growth, but with different patterns - Poland showed steady cumulative gains while Hungary delivered more volatile annual spikes.
Kraków's apartment prices surged 105% over five years, with Polish national prices growing 14-17% annually in 2024-2025. New home prices across Poland increased 4.1% year-over-year in Q2 2025, indicating market stabilization.
Hungary's recent performance was more aggressive, with Budapest prices jumping 11.8-19.2% annually in 2024-2025, and some panel flat segments exceeding 20% growth. However, this rapid appreciation creates sustainability concerns.
Poland's price growth appears more sustainable due to underlying economic fundamentals, while Hungary's rapid increases may signal speculative activity that could lead to market corrections.
What are the main taxes and fees when buying property in Poland compared to Hungary?
| Fee Type | Poland | Hungary |
|---|---|---|
| Transfer Tax | 2% | 4% |
| Notary & Legal Fees | 2-3% | 1-2% |
| Real Estate Agency | 2-3% | Varies |
| Registration Fees | Included in notary | €100-200 |
| Property Valuation | €200-400 | €200-500 |
| Total Buyer Costs | 5.35-8.1% | 5.5-7% |
How straightforward is the process for foreigners to buy property in Poland versus Hungary?
Poland offers more straightforward property acquisition for foreign investors, particularly EU citizens who face minimal restrictions when purchasing apartments.
EU buyers in Poland can purchase apartments without special permits, while non-EU buyers need ministry approval only for properties with land, not for apartment units. The process typically takes 30-60 days for standard transactions.
Hungary requires permits for most foreign property purchases, regardless of EU status, though the approval process is generally routine for standard residential properties. The permit requirement adds 2-4 weeks to transaction timelines.
Poland's legal framework follows strict EU standards with transparent land registry systems, while Hungary's notarial system is efficient but requires navigating additional bureaucratic steps for foreign investors.
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What are the typical mortgage rates and financing options available in Poland compared to Hungary?
Hungary offers slightly lower mortgage rates than Poland, but Poland provides more accessible financing options for foreign investors.
As of September 2025, Polish mortgage rates average 7.8% for fixed-rate loans, while Hungarian rates average 6.56%. Both countries have five-year averages of 6.3%, indicating recent rate normalization.
Polish banks increasingly offer financing to EU residents with stable income documentation, while Hungarian mortgage access remains more restrictive for non-residents. Loan-to-value ratios in Poland typically reach 80% for residents and 60-70% for foreigners.
The mortgage application process in Poland has improved significantly, with major banks offering English-language services and streamlined documentation requirements for EU citizens.
How strong is the demand for rental properties in Polish cities versus Hungarian cities?
Rental demand in Polish cities significantly outpaces Hungarian demand due to urbanization trends, student populations, and growing expat communities.
Warsaw and Kraków experience particularly strong rental demand from young professionals, international students, and tech workers, with vacancy rates below 5% in prime locations. Wrocław and Poznań also show robust demand driven by university populations and corporate relocations.
Budapest maintains stable rental demand, especially in central districts, with investor share reaching 45% of transactions. However, supply constraints in high-demand areas create localized shortages rather than broad-based growth.
Poland's rental market benefits from continued internal migration to major cities, while Hungary's rental growth is more concentrated in Budapest with limited expansion in regional centers.
It's something we develop in our Poland property pack.
What kind of economic growth and job market stability does Poland offer compared to Hungary?
Poland demonstrates superior economic fundamentals with sustained GDP growth, low unemployment, and diversified industry development compared to Hungary's more volatile recovery.
Polish urban centers continue expanding with unemployment remaining low and inflation normalizing after 2022-2023 peaks. The economy attracts significant foreign direct investment, particularly in technology and manufacturing sectors.
Hungary's economy is recovering with projected 2.6% GDP growth in 2025, but faces regional disparities with some post-industrial areas lagging. The job market remains stable in Budapest and major cities but shows weakness in rural regions.
Poland's larger economy (€680 billion GDP vs Hungary's €180 billion) provides more resilience against external shocks and offers greater diversification across sectors and regions.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Poland versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How secure are property rights and legal protections for investors in Poland compared to Hungary?
Both countries offer strong investor protections with secure land registries and transparent legal systems, though Poland provides slightly more standardized EU-compliant procedures.
Poland follows strict European Union legal standards with computerized land registries, standardized notarial procedures, and established dispute resolution mechanisms. Property rights are constitutionally protected with clear ownership transfer processes.
Hungary maintains efficient notarial systems with fast property registration, but foreign buyers face additional permit requirements that can create procedural complexities. Legal protections remain strong, but the approval process adds potential points of failure.
Both countries rank highly in international property rights indices, with Poland slightly ahead due to more streamlined procedures for international investors and clearer regulatory frameworks.
What are the long-term demographic trends in Poland versus Hungary, especially in urban areas?
Poland's urban demographics show more favorable long-term trends with continued city growth and younger population profiles compared to Hungary's aging and declining rural population.
Poland's urban population reaches approximately 22 million people in 2024, with major cities still attracting internal migrants despite slow national population decline. Warsaw, Kraków, and secondary cities maintain population stability through domestic relocation.
Hungary's urban population totals around 7 million, with Budapest and core cities remaining stable while rural areas experience significant population decline. The national demographic trend shows aging and gradual population decrease.
Poland's larger urban market provides more investment opportunities and liquidity, while Hungary's concentrated urban population in Budapest creates a smaller but more focused market.
How easy is it to resell a property in Poland compared to Hungary, and what are the average selling times?
Polish property markets offer superior liquidity with faster selling times, particularly in major cities, compared to Hungary's more concentrated market dynamics.
Well-positioned apartments in Warsaw, Kraków, and Wrocław typically sell within 2-6 months, with high transaction volumes providing multiple buyer options. The Polish market benefits from active domestic and international investor participation.
Budapest city-center properties also sell relatively quickly (2-5 months), especially smaller units, but the market is more concentrated geographically. Rural and tourist areas in Hungary experience longer selling periods.
Poland's larger market size and multiple investment-grade cities provide better liquidity options, while Hungary's market concentration in Budapest can create bottlenecks during market downturns.
It's something we develop in our Poland property pack.
What are the main risks of investing in Polish property versus Hungarian property right now?
Polish property investment faces risks from rising construction costs and potential rental regulation changes, while Hungarian investment carries higher volatility and demographic decline risks.
Key Polish risks include increasing development costs, possible stricter rental regulations, supply bottlenecks in major cities, and bureaucratic complications for non-EU buyers purchasing houses with land. Interest rate sensitivity also affects mortgage-dependent buyers.
Hungarian investment risks center on high annual price volatility, dependence on foreign investment flows, permit requirements for foreign buyers, and aging demographics outside Budapest. Currency fluctuation exposure adds another layer of risk.
Poland's risks appear more manageable due to the larger, more diversified economy, while Hungary's concentrated market structure amplifies both upside potential and downside risks during market cycles.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Poland emerges as the stronger choice for property investment in 2025, offering higher rental yields, more accessible financing, and superior economic fundamentals compared to Hungary.
While both markets present opportunities, Poland's larger urban centers, demographic stability, and streamlined foreign investment procedures make it a more compelling destination for international property investors seeking both income generation and capital appreciation.
Sources
- Poland Insight - Average Apartment Prices June 2025
- Global Property Guide - Poland Price History
- InvestRopa - Budapest Apartment Prices
- InvestRopa - Poland Price Forecasts
- Symbol Estate - Hungary Market Report Q1 2025
- Global Property Guide - Hungary Rental Yields
- InvestRopa - Budapest Average Prices
- InvestRopa - Kraków Price Per SQM