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When comparing Warsaw and Krakow for property investment, both cities offer compelling opportunities but with distinct characteristics.
Warsaw commands higher rental yields at 6-7% compared to Krakow's 5-6%, while Krakow has seen dramatic price appreciation of 105% over five years versus Warsaw's 50-60%. Both cities maintain strong rental demand from students, expats, and professionals, with Warsaw benefiting from its capital city status and Krakow from its tourism and tech outsourcing sectors.
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Warsaw offers higher rental yields and greater economic stability as Poland's capital, while Krakow provides stronger historical price appreciation and vibrant tourist rental markets.
Both cities present solid investment opportunities with low vacancy rates, strong rental demand, and similar closing costs, making location and property type selection crucial for maximizing returns.
| Investment Factor | Warsaw | Krakow |
|---|---|---|
| Average Price per sqm | 15,000-17,250 PLN (~€3,900-4,050) | 15,277-20,139 PLN (~€3,950-5,200) |
| Rental Yields | 6-7% | 5-6% |
| 5-Year Price Growth | 50-60% | 105% |
| Vacancy Rates | Under 5% (prime areas under 3%) | Slightly higher than Warsaw |
| Airbnb Annual Income | €15,000 | €17,000 |
| Monthly Living Costs | 6,500-8,000 PLN | 5,500-7,500 PLN |
| Economic Focus | Finance, tech, government | Tech outsourcing, education, tourism |
How much does an average apartment cost per square meter in Warsaw compared to Krakow?
As of September 2025, apartment prices in Warsaw range from 15,000 to 17,250 PLN per square meter, which translates to approximately €3,900 to €4,050.
City center locations in Warsaw command premium prices, with some areas exceeding 22,500 PLN per square meter. The Polish capital's property market reflects its status as the country's economic hub, driving demand and prices upward.
Krakow's average apartment prices fall between 15,277 and 20,139 PLN per square meter, spanning roughly €3,950 to €5,200. Central and luxury locations in Krakow often reach or surpass 20,000 PLN per square meter, while new developments citywide average around 15,200 to 15,500 PLN per square meter.
The price differential between these cities is narrower than many investors expect, with Krakow's premium locations actually commanding higher per-square-meter prices than Warsaw's average market rate.
It's something we develop in our Poland property pack.
What are the typical rental yields in each city right now?
Warsaw delivers gross residential rental yields between 6% and 7% for well-positioned apartments in September 2025.
The Polish capital's strong rental market stems from its concentration of international businesses, government institutions, and Poland's largest university population. These factors create consistent demand that supports higher yield potential.
Krakow rental yields typically range from 5% to 6% for most residential properties. Smaller apartments tend toward the lower end of this range, while larger or centrally located properties can achieve 6% or higher yields.
The yield difference reflects Warsaw's position as Poland's primary economic center, where higher rental rates compensate for the premium purchase prices. Both cities offer attractive returns compared to many Western European markets.
How quickly are property prices rising in Warsaw versus Krakow over the past five years?
Warsaw property prices increased approximately 50% to 60% between 2019 and 2025, with the most dramatic growth occurring during 2021-2023.
The Warsaw market has stabilized significantly in 2024 and 2025, with annual price growth moderating to between 5% and 14% depending on the specific district. This stabilization follows the rapid appreciation period that characterized the post-pandemic years.
Krakow experienced even more dramatic price appreciation, with property values surging 105% over the same five-year period. This represents one of Poland's fastest growth rates among major cities.
Like Warsaw, Krakow's market peaked during 2021-2023, but growth has moderated to 5% to 10% annually in 2025. The city's combination of tourism appeal, tech sector growth, and limited supply drove this exceptional appreciation.
What are the expected closing costs and taxes when buying property in each city?
| Cost Type | Rate/Amount | Notes |
|---|---|---|
| Transfer Tax (PCC) | 2% of property value | Paid by buyer, mainly for secondary market |
| Notary & Legal Fees | 1-2% of property value | Standard professional services |
| Real Estate Agent Fee | 2-3% of property value | Often split between buyer and seller |
| Annual Property Tax | 1.15-1.19 PLN per sqm | Varies by municipality |
| Rental Income Tax | 8.5-32% | Flat rate or progressive scale options |
| Total Closing Costs | 5-7% of purchase price | All fees combined (excluding ongoing taxes) |
How much rental demand is there from students, expats, and professionals in both cities?
Warsaw benefits from exceptionally strong rental demand across all tenant categories as of September 2025.
The city hosts Poland's largest concentration of universities, creating substantial student housing demand. Additionally, Warsaw's role as the financial and business capital attracts significant numbers of international professionals and expatriates working in tech, finance, and multinational corporations.
Vacancy rates in Warsaw's core locations remain below 5%, with prime districts often maintaining vacancy rates under 3%. This tight market reflects the consistent demand from diverse tenant groups.
Krakow experiences very high rental demand driven by Europe's largest concentration of business outsourcing and technology services. The city also attracts substantial numbers of international students and maintains year-round tourism that supports short-term rental markets.
Both cities benefit from strong academic calendars, international business presence, and growing expat communities that provide stable, diverse tenant bases for property investors.
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What are the average vacancy rates for rentals in Warsaw compared to Krakow?
Warsaw maintains remarkably low residential vacancy rates, with central neighborhoods typically recording vacancy rates under 5%.
Prime districts in Warsaw often achieve vacancy rates below 3%, reflecting the strong demand from professionals, students, and expatriates. The capital's diverse economy and steady population growth support this tight rental market.
Krakow's residential vacancy rates remain very low for properties targeting students and professionals, though the city records slightly higher overall vacancy than Warsaw.
The difference stems from Krakow's larger supply of new construction and some seasonal variation tied to tourism patterns. However, properties in academic districts and areas popular with international workers maintain consistently low vacancy rates.
How much do short-term rentals like Airbnb typically earn in Warsaw versus Krakow?
Krakow outperforms Warsaw in short-term rental income potential, with typical Airbnb properties generating approximately €17,000 annually as of September 2025.
Warsaw Airbnb properties typically earn around €15,000 per year, with average daily rates ranging from €64 to €81 and occupancy rates averaging 38% but reaching up to 81% for top-performing properties.
Krakow's superior short-term rental performance reflects its status as a major tourist destination, with average daily rates between €55 and €76 and occupancy rates typically ranging from 40% to 50%.
Warsaw experiences more pronounced seasonality in short-term rentals, with peak demand during summer months. Krakow benefits from more consistent year-round tourism, including business travelers, cultural tourists, and weekend visitors.
Both cities offer strong short-term rental opportunities, with over 50% of Krakow's Airbnb inventory consisting of one-bedroom units, indicating strong demand for solo travelers and couples.
What kinds of properties are most available in each city?
Warsaw's property market offers a diverse mix of new developments, mid-rise and high-rise apartments, and modern suburban houses.
The majority of Warsaw listings consist of one and two-bedroom apartments located in mid-range districts and city center areas. New construction projects continue to add supply, particularly in developing neighborhoods outside the historic center.
Krakow's primary market is dominated by new apartment developments, with older historic flats remaining prominent in the city center.
New developments and budget-friendly options in Krakow concentrate in peripheral and emerging districts, while the historic center maintains its character with renovated older properties. The city's compact size means most locations remain well-connected to major employment and entertainment areas.
It's something we develop in our Poland property pack.
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 easy is it to get a mortgage as a foreigner in Warsaw compared to Krakow?
Foreign buyers can obtain Polish zloty mortgages in both Warsaw and Krakow, though non-EU citizens face tighter eligibility requirements and higher down payment obligations.
Non-EU citizens typically need to provide down payments of 20% to 30%, while EU citizens often qualify for more favorable terms. Major banks in both cities offer English-language services, though some documentation requirements remain standard.
Warsaw offers slightly better mortgage accessibility for foreigners due to its larger international banking presence and greater experience with expatriate clients.
Both cities' major banks have developed processes for international buyers, but Warsaw's status as the financial capital provides access to more specialized mortgage products and experienced international lending teams.
How well connected are these cities in terms of public transport, airports, and international links?
Warsaw provides superior international connectivity as Poland's capital and primary business hub.
Chopin Airport in Warsaw offers direct flights to major European, North American, and Asian destinations. The city serves as the central hub for Poland's high-speed train network and highway system, with extensive metro, bus, and tram networks providing comprehensive local transportation.
Krakow maintains strong European connectivity through Balice Airport, which focuses primarily on European destinations with some charter flights to other regions.
High-speed train service connects Krakow to Warsaw in approximately 2.5 hours, while the city's dense tram and bus system provides effective local transportation. Krakow's compact size makes many areas walkable or easily accessible by bicycle.
What are the average monthly living costs in Warsaw compared to Krakow?
Warsaw commands higher living costs across most categories, with total monthly expenses for a single person ranging from 6,500 to 8,000 PLN (approximately €1,400 to €1,650).
One-bedroom apartments in Warsaw's city center typically rent for 3,000 to 4,000 PLN per month, while dining, entertainment, and services generally cost 10% to 15% more than in Krakow.
Krakow offers more affordable living costs, with total monthly expenses ranging from 5,500 to 7,500 PLN (approximately €1,200 to €1,550) for a single person.
City center one-bedroom apartments in Krakow rent for 2,500 to 3,500 PLN monthly. Utility bills in both cities add approximately 500 to 900 PLN per month, with slight variations based on building efficiency and usage patterns.
How do long-term economic and job opportunities differ between Warsaw and Krakow, and how might that affect property values?
Warsaw serves as Poland's undisputed economic powerhouse, concentrating the country's finance, technology, government, and international business sectors.
The capital attracts both domestic and international talent, creating sustained demand for housing and supporting property value resilience. Major multinational corporations, banks, and government institutions provide economic diversity and stability that supports long-term property appreciation.
Krakow has evolved into a major center for technology outsourcing, higher education, and tourism. The city hosts numerous international service centers and maintains a growing reputation as a tech hub, though average wages remain below Warsaw levels.
Both cities demonstrate strong economic fundamentals that support property investment, with Warsaw offering greater economic depth and Krakow providing dynamic growth in emerging sectors. Student populations, international businesses, and tourism create diverse economic bases that reduce investment risk.
Property values in both cities should continue experiencing steady but slower growth following recent rapid appreciation, with Warsaw's economic diversity providing greater resilience during market fluctuations.
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.
Warsaw offers higher rental yields and greater economic stability as Poland's capital, making it attractive for investors seeking steady returns and lower vacancy risk.
Krakow provides stronger historical price appreciation and vibrant tourist rental markets, appealing to investors targeting capital growth and short-term rental income.
Sources
- Poland Real Estate Market
- Average Apartment Price per sqm Krakow
- Average Apartment Price per sqm Warsaw
- Poland Price Forecasts
- Average Rent Warsaw
- Annual Airbnb Revenue in Warsaw Poland
- Annual Airbnb Revenue in Krakow Poland
- Warsaw Airbnb Market Report
- Real Estate Rental Market in Poland
- Poland Square Meter Prices