by
Andrzej Fluderski
Mortgage Loan Department
The Polish market of luxury real estate – with prestigious location, architecture, size and material quality – is growing, both in terms of apartments sold and their price.
Our domestic real estate market may be smaller in size, but its enormous growth potential, which is by far higher than in Western Europe, can fill us with optimism.
Edifying growth
Experts estimate that in 2018 the premium apartment market will grow in Poland by 8%, continuing the trend of the recent years. In 2015, it levelled at 7%, and in January-September 2017 the number of purchased luxurious apartments was 460 – more than in the entire 2016. Warsaw ranks first in terms of the number of transactions, with more than 130 such transactions in 2017. However, not only the apartments in big cities are very popular. Investors are also attracted to real estate in tourist resorts, such as in Sopot or Zakopane.
Experts estimate that in 2018 the premium apartment market will grow in Poland by 8%, continuing the trend of the recent years. In 2015, it levelled at 7%, and in January-September 2017 the number of purchased luxurious apartments was 460 – more than in the entire 2016. Warsaw ranks first in terms of the number of transactions, with more than 130 such transactions in 2017. However, not only the apartments in big cities are very popular. Investors are also attracted to real estate in tourist resorts, such as in Sopot or Zakopane.
Foundations for greater demand
Experts claim that in 2017 the number of wealthy Poles increased by 60,000, reaching a record 1.1 million people. What is more, their number should grow up to 1.4 million by 2020. The increasing wealth of our compatriots is one of the key foundations for a good economic situation on the luxurious real estate market. However, the number of people who can afford the most expensive apartments is estimated at 40,000 – they own more than USD 1 million in liquid assets. It should also be noted that institutional clients are also increasingly involved in the market. A good example is the fund Catella Wohnen Europa, which purchased as many as 72 apartments in the real estate at ul. Złota 44.
Experts claim that in 2017 the number of wealthy Poles increased by 60,000, reaching a record 1.1 million people. What is more, their number should grow up to 1.4 million by 2020. The increasing wealth of our compatriots is one of the key foundations for a good economic situation on the luxurious real estate market. However, the number of people who can afford the most expensive apartments is estimated at 40,000 – they own more than USD 1 million in liquid assets. It should also be noted that institutional clients are also increasingly involved in the market. A good example is the fund Catella Wohnen Europa, which purchased as many as 72 apartments in the real estate at ul. Złota 44.
How much for luxury?
The most valuable apartment in Europe is located in Monaco, and costs around EUR 300 million. Meanwhile, the most expensive apartment sold in Poland so far cost PLN 11 million. Where? At the Złota 44 investment. It is the most popular apartment house in Poland, 192 meters tall, with 287 luxurious apartments. Their price oscillates around PLN 50,000 per square meter. The prices of apartments in Baltic resorts are also rising exponentially. For example, luxurious apartments with a sea view or direct exit to the beach in the popular Mielno amount to PLN 19,000–22,000 per square meter. However, surveys show that Poles’ perception of premium apartments varies greatly, depending on their income. For some, luxurious apartments start at PLN 11,800 per square meter, while for people earning over PLN 20,000 gross per month they start at PLN 17,400 per square meter. Location is also of crucial importance. Warsaw is the leader in this respect – luxurious apartments in a prestigious neighborhood cost PLN 31,000 per square meter on average. Specialists define luxury real estate as those whose price exceeds PLN 20,000 per square meter
The most valuable apartment in Europe is located in Monaco, and costs around EUR 300 million. Meanwhile, the most expensive apartment sold in Poland so far cost PLN 11 million. Where? At the Złota 44 investment. It is the most popular apartment house in Poland, 192 meters tall, with 287 luxurious apartments. Their price oscillates around PLN 50,000 per square meter. The prices of apartments in Baltic resorts are also rising exponentially. For example, luxurious apartments with a sea view or direct exit to the beach in the popular Mielno amount to PLN 19,000–22,000 per square meter. However, surveys show that Poles’ perception of premium apartments varies greatly, depending on their income. For some, luxurious apartments start at PLN 11,800 per square meter, while for people earning over PLN 20,000 gross per month they start at PLN 17,400 per square meter. Location is also of crucial importance. Warsaw is the leader in this respect – luxurious apartments in a prestigious neighborhood cost PLN 31,000 per square meter on average. Specialists define luxury real estate as those whose price exceeds PLN 20,000 per square meter
Why do we choose luxury apartments?
A majority of premium apartments are purchased with the needs of their buyers in mind. The number of investments intended for rental is below twenty percent. However, it is worth noting that the tendency is on the rise, mainly due to low interest rates. They drive investments in luxurious real estate for rental, a tasty morsel for people seeking alternatives to bank deposits and stock of listed companies.
A majority of premium apartments are purchased with the needs of their buyers in mind. The number of investments intended for rental is below twenty percent. However, it is worth noting that the tendency is on the rise, mainly due to low interest rates. They drive investments in luxurious real estate for rental, a tasty morsel for people seeking alternatives to bank deposits and stock of listed companies.
Citi Handlowy - Loans and Credits - Mortgage products
Citi Handlowy - Loans and Credits - Mortgage products
