Property for Sale in Krakow Poland

Despite warnings that Poland’s property market was losing its heat and waning as an emerging area of intense interest for overseas property investors, Poland is actually continuing to deliver significant returns on investment in the form of both capital growth and rental yield. 

Of particular interest to investors at the moment is property for sale in Krakow which is in Southern Poland and which offers buyers the chance to tap into current demand from local residents, an increasing long term demand from tourism and an entire commercial sector that’s thriving and expanding.

Property for sale in Krakow isn’t cheap however, and we must start by making that point - because while Poland is considered an emerging country for real estate some would say it arrived already with the nation’s entry into the EU in 2004.  Despite the fact that property has significantly increased in underlying value the fact that there is a constantly expanding demand for property in Poland means that investment potential remains ripe. 

With the build up to EU entry in 2004 there came an initial surge of property interest in Poland especially in the commercial sector because Poland is a nation known for its intelligent and hard working labour force.  The centres of both Warsaw and Krakow saw an initial surge in demand for commercial and subsequently residential property and it’s Krakow that’s really continuing to embrace this overseas demand from international companies for space, resources, infrastructure and employees. 

Krakow is one of the most dynamic locations in the whole of Eastern Europe for business and the Krakow Technology Park, which is also a special economic zone, has been hugely successful and it has raised the profile of the city, its impressive strategic location and also its quality infrastructure and talented work force; furthermore it can be seen as a catalyst for the continuing growth in demand for commercial space in and around Krakow from companies such as Motorola and Delphi. 

This demand for commercial property in Krakow can be met by investors astute enough to buy in now and hold assets for the long term. 

Initially commercial yields will be low but as Krakow is determined to retain its competitive economic edge for international companies it will remain a location in which companies will invest and to which companies will commit and this will put pressure on the supply of space which over the longer term will result in more impressive yields and of course greater capital growth for investors who move quickly.

On the residential property side of things Krakow has a steadily increasing population because it has a constant inward flow of talented migrants from elsewhere in Poland.  These migrants, and also the locally born workforce, are becoming increasingly affluent as unemployment drops and wages rise.  Naturally enough this creates not only an increase in demand for residential real estate (mainly to rent) but it creates a situation where those demanding space can afford to pay more for it.  In the most popular parts of Krakow the price per square meter of real estate has gone up dramatically in the past couple of years meaning that investors have to pay out more to get quality accommodation – but at the same time they have a stronger base to whom they can market their rental property and this market base will pay good money for long term lets.

Finally, Krakow has an advantage over other Polish cities in that not only is it strategically located in an incredibly enviable position but it is also an incredibly beautiful location and as a result it has a rapidly developing tourism market. 

Annually Krakow is welcoming more visitors and they are people looking for short term apartment lets, apart-hotels and also hotel accommodation.  This booming tourism sector is ripe for utilisation from investors with well located and facilitated accommodation to let and from those looking for a commercial entry in to Krakow away from the industrial and office sectors.

One overseas company aware of Krakow’s tourism potential is Irish based Quinn Group who have just bought Krakow’s Sheraton Hotel for around EUR 45 million and who expect to reap returns from both the tourism market and the growing market for business persons requiring accommodation as well as conferencing and meeting space.

Property for sale in Krakow Poland almost offers investors a one stop shop with broad demand in a variety of real estate sectors and the long term potential for increasing yields and capital appreciation – it is well worth a closer look for anyone looking for a lower risk but slightly more pricey emerging market.

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