All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Warsaw's property market is included in our pack
Wondering about investing in real estate in Warsaw? You're not alone!
Many people are intrigued by Warsaw's post-communist transformation and dream of owning a modern apartment or a stylish townhouse there.
Would it be a good investment, though? Are property prices increasing in Warsaw? Is it expensive? Is it wiser to buy property in Śródmieście or Powiśle? What are the taxes? Where can you get a rental yield above 7%?
We have the answers.
The Investropa team has done their homework and know this market well. As a matter of fact, we've organized all our findings in a pack. Get it now.
In the lines below, we'll provide you with helpful information.
How's the property market in Warsaw?
Is the property market doing fine or not? A data-driven analysis will give us the answer.
Types of properties
In Warsaw, you can find various types of properties for sale, including apartments, houses, condos, and commercial spaces.
Apartments are common and come in different sizes, from studios to multi-bedroom units. Houses offer more space and often include yards or gardens. Condos provide a mix of apartment living with shared amenities.
Additionally, there are commercial properties available for businesses, like offices, shops, and warehouses.
So, whether you're looking for a cozy apartment, a spacious house, a convenient condo, or a commercial space, Warsaw offers a diverse range of property options for sale.
Buy or rent?
(If you're purchasing for personal use and not for renting)
If Warsaw is your home or a place you're planning to relocate to, you may be contemplating the buy vs. rent decision in this dynamic capital city of Poland.
Without a doubt, you should buy if you want to acquire equity in a property and have more control over the space you live in.
To make a good decision, consider the property price-to-rent ratio. This helps you understand the connection between rental income and the property's current price in terms of years.
According to Numbeo, the property price-to-rent ratio in Warsaw is around 23.56, which is around the world average.
To put it simply, it will take you an average of 24 years of rental payments to buy a property in Warsaw.
Property prices in Warsaw
On average, according to the last reported data from Central Statistical Office of Poland, purchasing a property in Warsaw will cost you around $4,900 per square meter.
Obviously, there is a significant spread. A city-center apartment in Warsaw might have a different price per square meter than a suburban house. We actually give you a more detailed breakdown in our pack for buying property in Warsaw and in Poland.
To put things in perspective, it means that, instead of buying an apartment in a big city like Paris, you can afford 3 properties in Warsaw.
However, housing prices in Warsaw are higher (40%) than in Prague.
The most expensive neighbourhoods in Warsaw are probably Śródmieście, Mokotów, and Wilanów, while the cheapest are likely Praga-Południe and Białołęka.
Trends
First and foremost, we have to acknowledge that Poland offers, today, a lot of stability to investors. The last Fragile State Index that has been reported for this place is 42.2.
This is important to remember when wondering if it's a good investment to buy a property in Warsaw.
If we look at the IMF’s forecasts, we can see that Poland's economy is expected to soar by 11.2% in the coming 5 years, resulting in an average GDP growth rate of 2.2%.
If you intend to invest in real estate in Warsaw it's a good thing because rising prosperity among individuals signals a probable upturn in housing prices.
Also, in Poland, the average GDP per capita has changed by 15.9% over the last 5 years. It ranks the country in the top 10 for the growth of this indicator.
This trend can lead to a rise of property prices in Warsaw over the course of 2024 and also later on.
Also, as per the UBS Global Real Estate Bubble Index, the property market in Warsaw is currently reasonably priced, with an index value of 0.15 (values below 0.5 indicate fair valuation).
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Poland right now.
Buying property in Warsaw
Buying real estate in Warsaw can be difficult due to the lack of reliable and updated information available, making it difficult to make informed decisions. That's why we have created the pack to buy property in Warsaw and in Poland.
Buying process
Within our pack, we have outlined the complete buying process. This includes the necessary documents, the applicable taxes, as well as information about where to locate properties, and more.
Here, we are providing you with a simpler version to assist you in better comprehending the information.
This is the step-by-step process to purchase a property in Warsaw:
- Research the Warsaw property market and set a budget.
- Engage a licensed real estate agent or explore listings on specialized Polish websites.
- Visit properties of interest in person or virtually.
- Hire a solicitor (adwokat or radca prawny) to handle legal aspects and review the "Land and Mortgage Register" (Ewidencja Gruntów i Budynków).
- Obtain a "Zaswiadczenie o Nr. KW" - a certificate confirming the property's entry in the Land and Mortgage Register.
- Negotiate the price and terms with the seller, considering "Opłata PCC" (Property Purchase Tax).
- Sign a preliminary agreement (umowa przedwstępna) and pay a deposit (usually 10%).
- Conduct property inspections, including "Ocena Techniczna Nieruchomości."
- Sign the final notarial deed (umowa aktu notarialnego) before a Polish notary and pay the remaining balance.
- Transfer ownership and register the property with the "Wydział Ksiąg Wieczystych" - Land and Mortgage Register Department.
- Pay "Podatek od czynności cywilnoprawnych" (Civil Law Transactions Tax) and notary fees.
- Obtain the property title and officially become the owner, receiving the "Wypis i Wyrys z Księgi Wieczystej" - an excerpt from the Land and Mortgage Register.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Poland.
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Where to find a property
Start your property search in Warsaw by exploring these websites.
- Commercial Real Estate - They are an agency specializing in servicing the commercial real estate market.
- Hamilton May - A licensed real estate agency based in Poland, offering services in Warsaw, Krakow, and Wroclaw since 2004.
- Domy - They offer the largest database of flats, houses, plots, and more. Over 544,000 property advertisements.
- Realting - An international real estate platform connecting buyers and sellers worldwide through reliable partners.
- Rentola - An international rental home search engine with a wide selection of properties and smart filtering options for tenants and landlords.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Poland.
What you can get
As mentioned before, the average price per sqm in Warsaw is $4,900. A 1-bedroom property with an area of 60 square meters would cost approximately $294,000, and a 2-bedroom with an area of 85 square meters would cost approximately $417,000.
However, prices will change based on both the property itself and its location.
Prices are steeper in the upscale parts of Warsaw. A residence in Powisle might cost you around $1,190,000, whereas a residence in Srodmiescie could be priced at $1,100,000.
But there are less expensive options in certain locations. You may find a condominium in Ursynów for $160,000, or one in Wola priced only at $130,000.
Find a more detailed breakdown in our full pack for buying property in Poland.
Common mistakes
Here are the main pitfalls specific to buying a property in Warsaw, Poland:
- Restitution claims: Some properties might have unresolved restitution claims from previous owners, leading to legal complications.
- Decommunization process: Ensure the property has undergone the necessary decommunization process, addressing any former communist symbols or names.
- Non-EU restrictions: Non-EU citizens may face limitations on purchasing agricultural land or properties in designated areas.
- Notary requirement: All property transactions require a notary's involvement, adding to the legal process and costs.
- Leasehold properties: Some properties might be on leasehold land, affecting long-term ownership and investment potential.
- Building permit validity: Verify the validity of building permits to avoid unauthorized constructions or potential demolition orders.
- Historic property restrictions: Historical properties may be subject to strict preservation regulations, limiting modifications and renovations.
- Polish language documents: Official documents are in Polish; translations may be required, and misunderstanding legal terms could lead to errors.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Poland Property Pack
Living in Warsaw
Living in Warsaw is a great experience, offering a vibrant culture, great food, and plenty of entertainment, making it an ideal location to buy property.
Cost of living
The cost of living in Warsaw is generally quite affordable compared to other European cities. Prices for basic goods like food, transportation, and housing are all relatively low, making it a great option for expats and travelers on a budget.
Here are some examples to better understand the cost of living in Warsaw:
- Rent for a one-bedroom apartment in Śródmieście (city center): $1,000-$1,500 per month.
- Monthly utilities (electricity, water, heating): $150-$200.
- Pierogi meal at a traditional Polish restaurant: $8-$12.
- Monthly public transportation pass for ZTM: $35-$50.
- Gasoline (per liter) from ORLEN or BP: $1.20-$1.40.
- Monthly fitness club membership at McFIT or Jatomi Fitness: $30-$50.
- Internet from Orange or Play (60 Mbps, unlimited data): $20-$30 per month.
- Movie ticket at Multikino or Cinema City: $8-$12.
Neighbourhoods
We like to show information in an easy-to-understand way. To do this, we have made a table that lists the different areas of Warsaw. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Śródmieście | Śródmieście is the city center of Warsaw, bustling with historical landmarks, cultural attractions, and a vibrant nightlife. | Rich cultural scene, excellent public transportation, and close proximity to major attractions. | High cost of living, heavy traffic, and limited green spaces. |
Praga | Praga is an up-and-coming neighborhood, known for its bohemian atmosphere, art galleries, and unique charm. | Affordable housing, artistic community, and a sense of authenticity. | Some areas may still be undergoing revitalization, and safety concerns in certain parts. |
Żoliborz | Żoliborz is a green and tranquil district with a mix of modern apartments and elegant pre-war buildings. | Beautiful parks, good schools, and a relaxed lifestyle. | Can be relatively expensive, limited nightlife options. |
Mokotów | Mokotów is a popular residential area with tree-lined streets, parks, and a variety of shops and restaurants. | Family-friendly, good public transport connections, and plenty of green spaces. | Higher property prices, especially in the central parts. |
Wola | Wola is a dynamically developing district, known for its modern architecture, shopping centers, and business opportunities. | Many new residential and commercial developments, convenient transport links. | Lack of historical charm, can be noisy and crowded. |
Ursynów | Ursynów is a large and diverse area with a mix of residential, commercial, and green spaces, ideal for families. | Great schools, parks, and recreational facilities. | Can be distant from the city center, limited cultural attractions. |
Bielany | Bielany is a peaceful district with a suburban feel, featuring forests, parks, and historical landmarks. | Abundance of greenery, calm atmosphere, and good educational options. | Can be far from the city center, limited public transport connections. |
Włochy | Włochy is a residential neighborhood with an industrial heritage and a growing number of modern apartments. | Easy access to the airport, affordable housing options. | Not as well-developed in terms of amenities and services. |
Bemowo | Bemowo is a predominantly residential district with a mix of housing types and several parks. | Reasonably priced housing, good public transport connections. | Less vibrant nightlife and entertainment options. |
Ursus | Ursus is an industrial and residential district with a rich history, known for its factories and green areas. | Historic landmarks, affordable housing, and good transportation links. | Some areas may lack amenities and entertainment options. |
Wawer | Wawer is a spacious and green district with a mix of residential areas, forests, and the beautiful Wawer Nature Reserve. | Quiet and peaceful surroundings, plenty of outdoor activities. | Can be far from the city center, limited public transport. |
Rembertów | Rembertów is a serene and green neighborhood with a mix of old and new houses, offering a suburban lifestyle. | Peaceful atmosphere, plenty of green spaces. | Not well-connected by public transport, limited commercial facilities. |
Wilanów | Wilanów is a prestigious district with a historic palace, beautiful parks, and upscale residential areas. | High-end housing, cultural attractions, and green spaces. | Higher cost of living, limited public transport. |
Wesoła | Wesoła is a charming neighborhood with a mix of old and new buildings, featuring a suburban atmosphere. | Quiet living, good schools, and easy access to green areas. | Limited entertainment options, especially for younger residents. |
Life in Warsaw
Warsaw's economy is largely driven by the service sector, which accounts for over 75% of GDP. The city is also home to a range of industries, including electronics, automotive, chemicals, and food processing.
Using information from the IMF, the GDP of Warsaw makes up almost 14% of Poland's GDP. That's nice because a city with a strong GDP makes a good ground for property investment due to its economic vibrancy, indicating potential for job growth, increased demand for real estate, and overall stability in property values.
What expats usually like the most in Warsaw is the vibrant nightlife and the variety of cultural attractions, such as the Royal Castle and the National Museum.
Another great point to note is that Warsaw is an incredibly safe city, with a crime index of only 26, which is a very impressive score. The culture of Warsaw is one that values respect for law and order, which has helped to create a low crime rate.
A good point for a property investor - Warsaw has an extensive and efficient mass rapid transit system consisting of several metro lines and numerous bus and tram lines.
Access to healthcare in Warsaw is very good, with a Healthcare Index of 60. Good healthcare facilities is a positive indicator in a real estate market.
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Renting out in Warsaw
If you're interested in buying property not to live in, but to rent out and generate income, this section is for you.
Long-term
Tenant Profiles in Warsaw
According to the data reported by Wikipedia, the home ownership rate in Poland is 87%, which is rather high.
It is probably a bit less in Warsaw which is quite different from the rest of the country.
If you decide to buy and rent out to long-term tenants, you should target young professionals, students, and expats who are looking for a place to live in the city. Additionally, there is a large demand for short-term rentals from business travelers and tourists visiting Warsaw.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in Śródmieście | Professionals, expats | City center living, convenience | $600 - $1,200 |
Flat in Mokotów | Families, young professionals | Residential area, green spaces | $500 - $1,000 |
Studio in Żoliborz | Students, artists | Cultural scene, trendy atmosphere | $400 - $800 |
Condo in Wola | Young professionals, urban dwellers | Modern living, convenient location | $500 - $1,000 |
2-Bedroom Apartment in Praga | Families, working professionals | Revitalized district, accessibility | $400 - $900 |
High-rise Apartment in Ursynów | Families, urban dwellers | Modern amenities, family-friendly | $500 - $1,000 |
1-Bedroom Apartment in Wilanów | Singles, young couples | Quiet area, affordability | $300 - $600 |
Rental yields
Nowadays, rental yields in Warsaw are usually below 5%. It's not much. As you might know it already, a good rental yield generally falls within the range of 7% or more.
Properties located in Warsaw's city centre and close to public transport offer the best rental yields due to the high demand for such locations from tenants. Additionally, properties located in popular districts such as Mokotów, Praga-Południe, and Żoliborz tend to have higher rental yields due to their proximity to amenities and attractions.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Finally, be aware that rental incomes in Warsaw are taxed at 9%, which is very advantageous.
Short-term
You could also decide to rent short-term to business travelers visiting Warsaw, or to tourists looking for a place to stay while exploring the city.
If you decide to go with that option, look for properties in the city center, such as the Old Town, the Palace of Culture and Science area, and the area around the Royal Route. You can also consider properties in the trendy neighborhoods of Praga, Powiśle, and Mokotów.
Currently, there are approximately 8,000 active Airbnb listings in Warsaw, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $77.
You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Warsaw can make around $1100 per month. Also, the average occupancy rate is estimated at 70%.
Is it worth buying real estate in Warsaw then?
Buying a property in Warsaw can be a smart move for those who want a stable, long-term investment and plan to make the city their home. The property price-to-rent ratio is reasonable, suggesting that if you're in Warsaw for the long haul, buying is financially advantageous compared to renting.
Moreover, Poland's stable economy with positive growth forecasts and rising prosperity among its citizens bodes well for the housing market. The reasonable property market valuation indicates that you're not entering a speculative bubble, making Warsaw a safer bet for real estate investments. If you're considering renting out your property, there's a demand for both long-term and short-term rentals, offering a potential additional income source.
However, buying property in Warsaw might not be the right choice if you're chasing quick profits or on a tight budget. The initial costs, including property prices, taxes, notary fees, and deposits, can be substantial. Moreover, property values vary widely across neighborhoods, with the most desirable areas commanding higher prices.
Additionally, the complexity of the buying process, potential language barriers, and legal challenges like unresolved claims or decommunization processes can be daunting for inexperienced buyers.
In conclusion, if you're looking for a stable, long-term investment in a growing city and are prepared for the initial costs and complexities, buying property in Warsaw makes sense. However, those seeking quick returns or facing budget constraints should carefully consider their options before diving into the market.
Make sure you understand the real estate market in Warsaw
Don't rush into buying the wrong property in Poland. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.