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Everything you need to know before buying real estate is included in our Poland Property Pack
Polish property prices remain significantly lower than Western European capitals, with Warsaw, Kraków, and Gdańsk offering apartments at less than half the cost of Paris or central Berlin.
As of September 2025, Poland delivers superior rental yields and stronger price growth compared to Western Europe, while maintaining better affordability relative to local salaries. However, transaction costs and mortgage conditions vary considerably between these markets, making location-specific analysis crucial for property investors.
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.
Polish cities offer property prices 50-60% below Western European capitals, with Warsaw averaging €4,100/m² compared to Paris at €10,000+/m².
Poland has delivered stronger 10-year price growth at 4.2% annually while maintaining rental yields of 5-6.5% versus 2.5-4.5% in Western Europe.
| Category | Poland (Major Cities) | Western Europe (Capitals) |
|---|---|---|
| Average Price/m² | €3,000-€4,625 | €6,000-€20,000+ |
| 10-Year Growth Rate | 4.2% annually | 1.5-3.5% annually |
| Rental Yields | 5.2-6.5% | 2.5-5.5% |
| Transaction Costs | 5-7% | 8-15% |
| Price-to-Income Ratio | 14-16x | 18-25x+ |
| Mortgage Rates | 7-8.5% | 3.9-5% |
| Foreign Investment Share | Under 10% | 20-25%+ |
How much does the average price per square meter of an apartment in Warsaw, Kraków, and Gdańsk compare with cities like Berlin, Paris, and Madrid?
Polish cities offer significantly lower property prices compared to major Western European capitals, with differences ranging from 50% to 75% below Western European levels.
Warsaw averages 17,900-18,000 PLN per square meter (€4,100-€4,200), while Kraków ranges from 15,300-20,100 PLN/m² (€3,520-€4,625). Gdańsk sits at the lower end with 13,000-15,000 PLN/m² (€3,000-€3,500).
In contrast, Berlin commands €8,316/m² on average with central new developments reaching €14,560/m². Paris dominates the price spectrum at €9,880-€10,418/m² for general areas, while central districts can exceed €20,000/m². Madrid falls in the middle range at €6,000-€6,600/m² for standard areas, with luxury properties reaching €10,000+/m².
This means Warsaw properties cost roughly half the price of Berlin and less than half of Paris rates. Even Kraków, at its highest price points, remains below Berlin's average rates.
It's something we develop in our Poland property pack.
What is the average annual growth rate of residential property prices in Poland versus Western Europe over the past 10 years?
Poland has delivered stronger residential property price growth compared to most Western European markets over the decade from 2015 to 2025.
Polish residential property prices have grown at an average rate of 4.2% per year, resulting in total price increases of approximately 45% over the 10-year period. This consistent growth reflects strong domestic demand, urbanization trends, and economic development.
Western European markets show more varied performance. Germany experienced similar total growth at 44% over 10 years but has recently turned negative with -6% year-over-year decline in 2024. France recorded modest 26% growth over the decade with recent weakness showing -3.5% annual decline in 2024. Spain outperformed with 53% total growth over 10 years and maintained 6% annual growth in early 2024.
Poland's price growth has been more stable and sustained compared to the volatile patterns seen in Western European markets, which have experienced both boom and correction cycles during this period.
How do rental yields in major Polish cities compare with those in Western European capitals?
Polish cities deliver significantly higher rental yields compared to Western European capitals, making them more attractive for income-focused property investors.
| City | Gross Rental Yield | Investment Appeal |
|---|---|---|
| Kraków | 6.5% | Highest among major Polish cities |
| Gdańsk | 5.5-6.1% | Strong tourist and student demand |
| Warsaw | 5.2% | Central areas, stable rental market |
| Madrid | 4.8-5.5% | Peripheral areas reach 6% |
| Berlin | 3.5-4.5% | Outer districts reach 4.8% |
| Paris | 2.5-4.5% | Central low, eastern areas higher |
The yield advantage in Polish cities reflects lower property purchase prices relative to rental income potential. Kraków leads with the highest yields due to strong student and tourist rental demand, while Warsaw offers more stable long-term rental markets despite slightly lower yields.
What is the typical cost of buying a 70-square-meter apartment in central Warsaw compared to central Paris or Amsterdam?
A 70-square-meter apartment in central Warsaw costs significantly less than comparable properties in Paris or Amsterdam, representing roughly one-third to one-half the price.
In Warsaw's central districts like Śródmieście or Mokotów, a 70m² apartment typically costs 1.26-1.6 million PLN (€290,000-€365,000). This price range reflects quality locations with good transport links and urban amenities.
Paris central districts command €700,000-€1,000,000+ for similar 70m² apartments, representing 2-3 times Warsaw's price levels. Amsterdam follows similar patterns with €650,000-€900,000 for central 70m² properties.
The substantial price difference means investors can acquire 2-3 properties in central Warsaw for the cost of one equivalent apartment in Paris or Amsterdam. This price gap creates opportunities for portfolio diversification and higher total rental income potential.
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How affordable are Polish properties relative to average local salaries compared with the affordability gap in Western Europe?
Polish properties remain more affordable relative to local salaries compared to Western European markets, though the affordability gap is narrowing due to rapid price growth.
Warsaw properties require 14-16 times the average annual net salary, making them challenging but achievable for local buyers with stable employment. This represents better affordability than most Western European capitals.
Berlin and Madrid properties typically cost 18-21 times annual salaries, while Paris and Amsterdam reach 25+ times average local incomes. These ratios make homeownership extremely difficult for local residents without significant family wealth or dual incomes.
However, Poland's affordability advantage is diminishing as property prices have risen faster than wage growth over recent years. Local salary increases have not kept pace with 4.2% annual property price growth, creating increasing pressure on first-time buyers.
Foreign buyers benefit from this affordability gap, especially those earning Western European or North American salaries while investing in Polish properties.
What are the main taxes and transaction costs when buying property in Poland versus France, Germany, or Spain?
Poland offers lower total transaction costs compared to Western European countries, making property acquisition more cost-effective for investors.
| Country | Transfer Tax | Notary/Legal Fees | Agent Fees | Total Cost Range |
|---|---|---|---|---|
| Poland | 2% (existing) / VAT (new) | 2-3% incl. notary, registry | 2-3% buy/sell | 5-7% |
| France | 7-8% | 1-2% | 4-6% (often seller pays) | 8-12% |
| Germany | 5-6% | 1.5-2% | 1.5-6% | 7-13% |
| Spain | 7-10% (existing) / 10% VAT (new) | 1-2% | 3-5% | 10-15% |
Poland's 5-7% total transaction costs compare favorably to France's 8-12%, Germany's 7-13%, and Spain's 10-15% ranges. The lower costs in Poland can save investors €10,000-€30,000 on typical property purchases compared to Western European alternatives.
How do mortgage interest rates and lending conditions in Poland compare with those in Western Europe?
Polish mortgage rates are significantly higher than Western European levels, but lending criteria and down payment requirements are comparable to regional standards.
Poland currently offers mortgage rates of 7-8.5% with requirements for 10-20% down payments and strict affordability assessments. Polish banks conduct thorough income verification and debt-to-income ratio analysis.
Germany provides more favorable rates at 3.9-4.4% for fixed-rate mortgages but requires 20-30% down payments for foreign buyers and maintains conservative loan-to-value ratios. France and Spain offer rates in the 4-5% range with 10-25% down payment requirements and evidence of stable income.
The higher Polish rates reflect the country's monetary policy and inflation environment, making cash purchases more attractive relative to financing. Foreign investors often find better value in cash transactions to avoid currency exchange risks and higher borrowing costs.
It's something we develop in our Poland property pack.
What is the level of foreign investment in Polish real estate compared to Western European markets?
Foreign investment in Polish real estate remains relatively low compared to Western European markets, creating opportunities for international buyers to enter before increased competition drives prices higher.
Foreign buyers represent under 10% of Polish property transactions, with primary interest from Germany, Ukraine, Russia, Israel, and increasingly from the UK and Western Europe. This low foreign participation reflects Poland's emerging status in international real estate investment.
Western European capitals show much higher foreign investment penetration, with 20-25%+ of transactions involving international buyers in cities like Paris, Berlin, and Barcelona. This heavy foreign presence contributes to price pressure and reduced availability for local buyers.
The lower foreign investment level in Poland suggests potential for increased international interest as investors discover the market's value proposition. Early foreign investors may benefit from first-mover advantages before widespread international recognition drives competition.
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 does the supply of new housing in Poland compare with construction levels in Western Europe?
Poland maintains high levels of new housing construction compared to Western European markets, but demand continues to outpace supply in major cities.
Polish developers started over 220,000 new dwellings in 2024, representing robust construction activity driven by urbanization trends and population concentration in major cities. However, demand from both domestic buyers and rental markets continues to exceed new supply availability.
Western European markets face more constrained construction due to regulatory hurdles, high construction costs, and land scarcity. Berlin, Paris, and Amsterdam experience chronic housing shortages with new supply falling below population growth requirements.
The supply dynamics favor continued price growth in Polish cities as demand from urban migration, foreign workers (particularly Ukrainian and Belarusian), and rising middle-class aspirations exceeds new construction rates. This contrasts with some Western European markets where oversupply concerns exist in secondary locations.
What are the long-term demographic and economic trends driving property demand in Poland compared with Western Europe?
Poland benefits from strong demographic and economic trends that support continued property demand growth, contrasting with more mature Western European markets facing demographic challenges.
Polish cities experience robust population growth, with Warsaw, Kraków, and Gdańsk attracting domestic migration from smaller cities and rural areas. Significant inward migration from Ukraine and Belarus adds to housing demand, while Poland's rising middle class increases homeownership aspirations.
Limited rental stock availability in Polish cities creates investment opportunities as rental demand outpaces supply. Economic growth and EU membership continue to drive urbanization and property market development.
Western European markets face aging populations and slower urban growth, though capitals still attract international migration. However, affordability constraints limit local demand growth, with many young residents unable to access homeownership.
Poland's younger demographic profile and continued economic convergence with Western European living standards support longer-term property demand growth compared to more mature Western markets.
How does the quality of infrastructure, amenities, and lifestyle in Polish cities compare to Western European standards?
Polish cities have rapidly improved infrastructure, amenities, and lifestyle offerings over the past decade, though they remain slightly below the premium standards of established Western European capitals.
Warsaw, Kraków, and Gdańsk now offer modern public transport systems, expanding green spaces, diverse restaurant scenes, cultural attractions, and international schools. Major retail, food and beverage, and leisure investments have significantly enhanced quality of life compared to conditions even 10 years ago.
These improvements make Polish cities increasingly attractive for both residents and investors seeking quality urban environments at more affordable costs. Infrastructure development continues with EU funding support and private investment.
While Polish cities may not yet match the premium amenities and infrastructure maturity of Paris, Berlin, or Amsterdam's finest areas, they offer compelling lifestyle quality relative to property costs. The improvement trajectory suggests continued convergence with Western European standards.
It's something we develop in our Poland property pack.
What are the future price forecasts for Polish real estate over the next five years versus key Western European markets?
Polish real estate markets are expected to continue outperforming Western European markets over the next five years, though growth rates will moderate from recent highs.
Poland property prices are forecast to grow 3-5% annually through 2030, slower than the recent cycle but supported by housing shortages, continued demand growth, wage increases, and rising foreign investor interest. This growth trajectory reflects Poland's ongoing economic development and urbanization trends.
Western European markets face more constrained growth prospects, with Berlin, Paris, and Madrid expecting flat to slight growth of 1-2% annually. Some markets face downside risks due to affordability pressures, higher interest rates, and economic uncertainty.
The forecasted growth differential suggests Polish properties may continue closing the price gap with Western European markets while maintaining superior investment returns. However, investors should monitor wage growth trends and affordability metrics to assess sustainability of this growth trajectory.
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.
Polish real estate markets offer compelling value propositions compared to Western European alternatives, with significantly lower purchase prices, higher rental yields, and stronger growth prospects.
While transaction costs are lower and properties remain more affordable relative to local incomes, investors must weigh higher mortgage rates and emerging market considerations against the substantial cost advantages and growth potential.
Sources
- Average apartment price per sqm Warsaw
- Average apartment price per sqm Krakow
- What is expensive in Poland
- Average apartment price per sqm Berlin
- Average apartment price per sqm Paris
- Average apartment price per sqm Madrid
- Global Property Guide Poland 10 year price change
- CEIC Data Poland house prices growth
- Spanish Property Insight market comparison
- Average rent apartment Poland