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Everything you need to know before buying real estate is included in our Poland Property Pack
Poland has emerged as one of Europe's most attractive property investment destinations in 2025. The country offers robust economic growth, strong rental yields averaging 6.1%, and relatively affordable property prices compared to Western European markets.
With a persistent housing shortage of over 1.5 million units and annual price growth reaching 14.4%, Poland presents compelling opportunities for both capital appreciation and rental income. Major cities like Warsaw, Kraków, and Wrocław continue to show strong demand from domestic and international buyers.
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's property market in 2025 offers strong investment potential with high rental yields, growing property values, and accessible purchase processes for foreign buyers.
The housing shortage, stable economy, and competitive pricing make Poland an attractive alternative to more expensive Western European markets.
| Investment Factor | Poland Market Status | Investor Advantage |
|---|---|---|
| Average Rental Yield | 6.1% (up to 6.5% in Kraków) | Higher than most EU markets (3-4%) |
| Property Price Growth | 14.4% annually (2024-2025) | Among Europe's fastest growth rates |
| Housing Supply | 1.5-2.2 million unit shortage | Strong demand supports prices |
| Foreign Buyer Access | Easy for EU citizens, permit required for non-EU land purchases | Relatively open market |
| Economic Stability | One of Europe's most stable economies | Low investment risk |
| Transaction Costs | 2-5% total (notary, tax, agent fees) | Moderate compared to other EU markets |
| Mortgage Availability | Available for foreigners at 5-6% rates | Accessible financing options |
What are the current property prices in Poland and how have they changed recently?
As of September 2025, average residential property prices in Poland's seven largest cities stand at PLN 13,404 per square meter for existing homes and PLN 14,265 per square meter for new construction.
Warsaw leads the market with average prices of PLN 16,459 per square meter, followed closely by Gdańsk at PLN 16,233 per square meter and Kraków at PLN 15,099 per square meter. Wrocław properties average PLN 12,675 per square meter, while Poznań sits at PLN 10,831 per square meter, and Łódź offers the most affordable prices at PLN 7,799 per square meter.
The Polish property market has experienced remarkable growth over the past few years, with annual price increases reaching 14.4% in 2024-2025, making it one of Europe's fastest-growing property markets. This growth trajectory has been consistent over the past five years, driven primarily by a persistent housing shortage estimated between 1.5 and 2.2 million units nationwide.
Property prices have shown continuous upward momentum since 2020, with no significant corrections or downturns. The combination of strong domestic demand, limited supply, and increasing foreign investment has created a robust price appreciation environment across all major Polish cities.
It's something we develop in our Poland property pack.
Which Polish cities offer the best opportunities for real estate investment?
Wrocław currently stands out as the top choice for real estate investors, offering an attractive combination of growth potential and rental yields around 6.1%.
The city benefits from a thriving technology sector, significant student population from multiple universities, and expanding logistics infrastructure that drives consistent demand for both residential and commercial properties. Wrocław's relatively affordable entry prices compared to Warsaw and Kraków, combined with strong economic fundamentals, make it particularly appealing for investors seeking both capital appreciation and rental income.
Warsaw remains the economic powerhouse and offers excellent liquidity for property transactions, making it ideal for investors who prioritize easy exit strategies. The capital city provides stable appreciation potential and maintains the highest transaction volumes in the country, though rental yields are slightly lower at around 5.2% due to higher property prices.
Kraków excels in rental yield potential at 6.5%, driven by its combination of tourism, business activity, and large student population. The city's historic appeal and growing tech sector create diverse tenant demand. Gdańsk and the Tri-City area offer strong growth prospects due to port expansion, shipping industry growth, and increasing tourism.
Łódź and Poznań represent value investment opportunities with ongoing urban revitalization projects and competitive yields, though they offer more moderate growth potential compared to the top-tier cities.
What are the property tax rates and additional costs for foreign buyers in Poland?
Poland maintains relatively low property tax rates that apply equally to both domestic and foreign property owners.
| Tax/Fee Type | Rate/Amount | Additional Notes |
|---|---|---|
| Annual Property Tax (Residential) | Up to PLN 1.19/m² | Set by local municipalities, often lower |
| Annual Property Tax (Land) | Up to PLN 0.73/m² | For land ownership |
| Rental Income Tax | 8.5%-12.5% flat or 12%-32% progressive | Choice of tax system available |
| PCC Purchase Tax (Secondary Market) | 2% of property value | Waived for first-time buyers and new builds |
| VAT (New Builds) | 8%-23% | Usually included in purchase price |
| Notary Fees | PLN 1,010 + 0.4% of excess over PLN 60,000 | Capped at PLN 10,000 |
| Real Estate Agent Commission | 1.5%-3% + 23% VAT | Typically paid by seller |
Foreign buyers face the same tax obligations as Polish residents for property ownership and rental income. Non-residents may need to consider bilateral tax treaty provisions for capital gains tax compliance, but the rates themselves remain consistent regardless of citizenship.
The PCC tax exemption for first-time buyers and new construction properties can provide significant savings, making these options particularly attractive for foreign investors entering the Polish market.
How accessible is the Polish property market for foreign buyers?
Poland offers one of the most accessible property markets in Central Europe for foreign buyers, with different rules depending on citizenship status and property type.
EU, EEA, and Swiss citizens enjoy unrestricted access to purchase apartments and houses throughout Poland, with minimal bureaucratic requirements beyond standard property transaction procedures. The process for these buyers is essentially identical to domestic purchases, requiring only proper identification and financial documentation.
Non-EU citizens can freely purchase apartments and commercial properties without any special permits or approvals. However, buying detached houses or land requires approval from the Ministry of Interior, which is typically granted for legitimate investment purposes, personal residence, or business activities, provided the buyer has a clean background and can demonstrate reasonable justification for the purchase.
Companies registered in Poland or other EU countries can acquire any type of property, including land and houses, without restrictions, making corporate ownership an attractive option for non-EU investors. Agricultural and forested land remains restricted for nearly all foreign buyers, regardless of citizenship.
The legal due diligence and notary process applies to all buyers and typically takes 2-8 weeks from preliminary agreement to final registration. Foreign buyers should budget for professional legal assistance to navigate the documentation requirements and ensure proper registration with the Land and Mortgage Registry.
What rental yields can investors expect in Polish cities compared to other European markets?
Poland offers some of Europe's most attractive rental yields, with the national average reaching 6.1% gross yield as of 2025.
Kraków leads major cities with yields around 6.5%, while Wrocław delivers approximately 6.1% and Łódź offers 5.8%. Warsaw, despite higher property prices, still provides solid yields of 5.2%, and some smaller cities report yields exceeding 7%. Short-term rental properties in prime tourist areas can achieve gross yields as high as 12% in cities like Kraków and Gdańsk.
These yields significantly outperform most Western European markets, where typical rental yields range from 3-4% in cities like Berlin, Paris, or Amsterdam. Poland's yield advantage stems from the combination of relatively affordable property prices and strong rental demand driven by internal migration, young professionals, and international relocations.
The rental market benefits from low vacancy rates across major cities, with tenant demand consistently outpacing supply. Warsaw, Kraków, Wrocław, and Gdańsk show particularly strong rental markets due to their combination of business activity, university populations, and tourism.
Rental increases have averaged 8-10% annually in recent years, supporting both current yield calculations and future income growth potential. The persistent housing shortage ensures that rental demand remains robust across all major urban areas.
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What is the current condition of Poland's housing market?
Poland's housing market in 2025 is characterized by strong demand that significantly exceeds supply, creating a seller's market across all major cities.
The persistent housing shortage of over 1.5 million units ensures that properties remain in high demand rather than overbuilt. This shortage affects both the rental and purchase markets, maintaining upward pressure on both rents and property values. Major cities like Warsaw, Kraków, Wrocław, and the Tri-City area show particularly tight inventory levels.
Vacancy rates remain among the lowest in Central Europe, with properties typically finding tenants or buyers quickly in prime locations. The secondary market maintains good liquidity in major urban centers, allowing investors to exit positions when needed without significant delays or price concessions.
New construction activity has increased but still falls short of meeting total demand, particularly for affordable housing segments. Government initiatives to stimulate construction have begun to show results, but the impact on overall supply shortage remains limited in the short term.
Internal migration from smaller cities to major urban centers continues to drive demand, along with an increasing number of international relocations for work and lifestyle reasons. This demographic trend supports long-term market stability and growth potential.
How stable is Poland's economy and what impact does this have on property values?
Poland maintains one of Central Europe's most stable economies, providing a solid foundation for property investment security and growth.
The country has demonstrated remarkable economic resilience, with consistent GDP growth and successful integration into European and global markets. Poland's diversified economy includes strong manufacturing, technology, and service sectors that provide employment stability and income growth for the population. This economic diversity reduces dependency on any single industry and supports sustainable property demand.
Moderate inflation and interest rate policies have made real estate an attractive inflation hedge for both domestic and international investors. The Polish central bank's monetary policy has successfully balanced growth support with price stability, creating a favorable environment for property investment. Current economic indicators suggest continued stability through the medium term.
Foreign investment flows into Poland remain strong, particularly in technology, manufacturing, and logistics sectors, which support employment growth in major cities and maintain demand for both residential and commercial properties. EU membership provides additional economic stability and access to development funding for infrastructure projects.
Economic fluctuations, when they occur, tend to have limited impact on property values due to the underlying housing shortage and demographic trends. The property market has shown resilience during economic uncertainties, with prices maintaining upward momentum even during challenging periods.
It's something we develop in our Poland property pack.
What are the prospects for property value appreciation over the next 5-10 years?
Property value appreciation in Poland is expected to remain positive over the next 5-10 years, though growth rates may moderate from the current high levels.
The fundamental drivers supporting long-term appreciation include the persistent housing shortage, positive demographic trends, and continued economic development. While annual price growth may slow from the current 14.4% rate, experts anticipate sustained appreciation in the 5-8% range annually through 2030, assuming normal economic conditions.
New construction initiatives and government housing programs may help ease supply constraints gradually, potentially cooling the pace of price growth in some segments. However, the scale of the housing deficit means that supply-demand imbalances will likely persist for several years, continuing to support property values.
Major cities are expected to outperform smaller urban areas in terms of appreciation potential, driven by continued urbanization trends and economic concentration in major metropolitan areas. Warsaw, Kraków, Wrocław, and Gdańsk should maintain premium growth rates due to their economic importance and limited developable land in prime locations.
Infrastructure development projects, including transportation improvements and urban renewal initiatives, will likely create additional appreciation opportunities in specific districts and neighborhoods. EU funding for infrastructure development provides additional support for long-term property value growth.
Currency stability and EU membership reduce external risks that could negatively impact property values, while Poland's growing integration with Western European markets supports long-term demand from international buyers and investors.
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.
What are the total costs involved in purchasing property in Poland?
Total property purchase costs in Poland typically range from 3-6% of the property value, making it relatively affordable compared to many European markets.
Notary fees follow a progressive scale, with costs of PLN 1,010 plus 0.4% of the property value exceeding PLN 60,000, capped at PLN 10,000 maximum. For a property worth PLN 500,000, notary fees would amount to approximately PLN 2,770. Land registry and court fees add another PLN 200-300 to the transaction.
The PCC tax of 2% applies to secondary market purchases, though first-time buyers and new construction purchases are exempt. New build properties are subject to VAT (8-23%) which is typically included in the advertised price. Real estate agent commissions range from 1.5-3% plus 23% VAT, usually paid by the seller but sometimes split between parties.
Additional costs include legal fees if using an attorney (recommended for foreign buyers), property surveys or inspections, and mortgage-related fees if financing the purchase. Bank mortgage fees include notary costs for loan registration and application processing fees that vary by lender.
Foreign buyers should budget for translation services for documents and potentially higher legal fees due to additional due diligence requirements. Currency exchange costs should also be considered for buyers paying in foreign currencies, though these can be minimized through proper timing and financial planning.
How does the mortgage system work for non-residents in Poland?
Poland's mortgage system is accessible to non-residents, though with stricter requirements and higher costs compared to domestic borrowers.
As of mid-2025, average mortgage interest rates in Poland stand at 7.37% for variable rate loans, while foreign buyers typically face rates of 5-6% for fixed-rate mortgages, representing a 0.5-1% premium over domestic rates. Non-residents generally need to provide larger down payments, with most banks requiring minimum 20-30% equity compared to 10-20% for Polish residents.
EU and EEA citizens face fewer restrictions than non-EU nationals, with most major Polish banks willing to lend to European citizens who can demonstrate stable income and creditworthiness. Non-EU residents face more stringent documentation requirements and may need local co-borrowers or guarantors depending on the lender and loan amount.
Income documentation requirements are comprehensive, including employment contracts, tax returns, bank statements, and sometimes proof of income in the borrower's home country. Many banks require income to be at least 3-4 times the monthly mortgage payment, and some prefer borrowers with Polish employment or business connections.
Loan terms typically range from 10-30 years, with most banks preferring shorter terms for non-resident borrowers. The application and approval process usually takes 4-8 weeks, including property valuation and legal verification. Foreign borrowers should work with mortgage brokers familiar with international applications to navigate the process efficiently.
What is the legal process for buying property in Poland and how long does it take?
The Polish property purchase process follows a structured legal framework that typically takes 4-10 weeks from initial agreement to final registration.
- Property selection and preliminary agreement: Buyers negotiate terms and sign a preliminary sales agreement (umowa przedwstępna), often involving a deposit or escrow arrangement to secure the property.
- Due diligence period: This crucial phase takes 2-4 weeks and includes verification of property ownership, checking for liens or encumbrances, confirming planning permissions, and reviewing all legal documentation.
- Final contract and notary deed: All parties must be present at the notary office for the final transaction, where the purchase deed is signed, taxes are paid, and ownership officially transfers.
- Registration process: The new ownership must be registered with the Land and Mortgage Register, which takes 1-4 weeks for official confirmation and issuance of updated documents.
- Utility transfers and final arrangements: New owners arrange utility transfers, insurance, and any necessary municipal registrations to complete the transition.
Foreign buyers should engage qualified legal representation familiar with international transactions to ensure proper documentation and compliance with all requirements. The notary plays a crucial role in Polish property transactions, verifying all documents and ensuring legal compliance throughout the process.
Delays can occur during the due diligence phase if property documentation is incomplete or if there are complications with ownership verification. Proper preparation and professional legal assistance can minimize delays and ensure smooth transaction completion.
What is the rental market like in Poland in terms of tenant demand?
Poland's rental market shows exceptionally strong tenant demand across major cities, with vacancy rates among the lowest in Central Europe.
Warsaw, Kraków, Wrocław, and Gdańsk demonstrate particularly robust rental markets driven by multiple tenant categories including students, young professionals, international expatriates, and domestic workers relocating for employment opportunities. The combination of major universities, growing technology sectors, and increasing foreign investment creates diverse and stable tenant demand.
Rental price increases have averaged 8-10% annually in recent years, reflecting the imbalance between supply and demand. Properties in prime locations typically find tenants within 1-2 weeks of listing, while even secondary locations rarely remain vacant for more than a month in major cities.
The student rental market is particularly strong, with over 400,000 university students nationwide creating consistent demand for both traditional rentals and shared accommodations. International students and exchange programs add additional demand in university cities like Kraków, Warsaw, and Wrocław.
Corporate relocations and international business expansion continue to drive demand for mid to high-end rental properties, particularly in Warsaw's business districts and other major commercial centers. Short-term rental markets in tourist areas like Kraków's Old Town and Gdańsk's historic center show strong seasonal performance with high occupancy rates.
Smaller cities offer wider yield spreads but with trade-offs in terms of tenant variety and market liquidity. Cities like Poznań, Łódź, and regional capitals still show good rental demand but may require longer tenant search periods and more limited exit strategies for property investors.
It's something we develop in our Poland property pack.
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's property market in 2025 presents compelling opportunities for both investment and personal residence, combining strong fundamentals with accessible entry requirements for foreign buyers.
The combination of high rental yields, robust economic stability, and continued property appreciation makes Poland an attractive alternative to more expensive Western European markets, particularly for investors seeking both income and capital growth potential.
Sources
- Global Property Guide - Poland Price History
- InvestRopa - Poland Price Forecasts
- Poland Insight - Average Apartment Prices
- Trading Economics - Poland House Price Index
- Centrarium - Poland Real Estate Market 2025
- CrowdSQ - Top 5 Cities for Real Estate Investment
- Mavenwood Capital - Where to Invest in Poland 2025
- Global Property Guide - Poland Rental Yields
- InvestRopa - Average Rent Apartment Poland
- Expatriate Healthcare - Can a Foreigner Buy a House in Poland