Krakow property: buy, buy, buy!

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Krakow, in the south of Poland, is in the middle of a residential property boom.

Poland’s entry into the EU a couple of years ago has meant that the market has been opened up to foreign investment, and in all major cities around the country new apartment complexes have promised luxury at an affordable price. Of course, when these companies talk of affordability, they are generally marketing towards better-off westerners, either private buyers or corporate organisations looking to invest in property.

Krakow is a specific case. Not long ago, it was noted in the Polish press that some areas of Krakow, notably the Stare Miasto, or Old Town, had become more expensive than prime real estate in the country’s capital, Warsaw. Prices in Poland’s southern city have seen more than a 100% rise in the past couple of years, and the advent of new apartment buildings that are currently being built throughout the city have driven prices of existing flats in older blocks up too.

So, with prices starting in Kraków’s Old Town at around 12-13 thousand zlotys a square metre (that’s around 3000 euros), no wonder then that the market is causing a stir. I was told in one estate agency of apartments even reaching the 20-thousand-zloty-per-square-metre mark. The boom has begun, and real-estate dealers are rubbing their hands together waiting for their next bit of business. And they won’t be rubbing long, as more and more foreigners come to Kraków to find grossly huge apartments or even a little pied-à-terre to be used for weekend getaways.

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Whether it’s buying or selling, the local property market is in full swing. Some estate agents say that the prices will stabilise soon, and that the next price hike won’t really happen until Poland joins the Euro, Europe’s common currency. With that not happening for some time yet though, now really is the moment to buy buy buy.

Report by John Beauchamp

Sorry, this is the Radio Polonia story, and cannot be displayed in full on CracowOnline.com.
Source: Radio Polonia