Krakow Property vs Warsaw Property, who is plumping for which?

May 1, 2012

As “western” European countries such as Greece and Portugal  flounder, the former communist nation, Poland is borrowing cheaply. Poland is also benefitting from being Germany’s neighbour as stimulus measures have had a halo effect across the border. Germany even claims that it wants its relations with Poland to be as close as they are with France.

We hear that 2 million Polish people have gone to work abroad, many in the UK. However this is only a small part of the story. Incentives were offered to get manual workers back to Poland, to upgrade the sports stadia and infrastructure, ahead of 2012 UEFA championships taking place in June 2012.

Who is buying Krakow Property and Warsaw Property?

Buy Krakow apartmentThere is strong interest in investing back in Poland and Krakow in particular, among people who have either visited and fallen in love with the place, or met and fallen in love with a Pole from Krakow or elsewhere in Poland.

What’s more, recent anecdotal evidence from the British Polish Chamber of Commerce reveals that some middle-class Britons, fed up with the recession in the UK, are ironically turning migrants, and heading to Poland and Kraków  (known as Cracow by British people), for a better life.

Why are they buying or renting Krakow Apartments or Warsaw Apartments?

Krakow Property

Kraków is the second city in Poland (after Warsaw) and is a top destination, particularly as a city centre break, for foreigners. According to the World Investment Report 2011 by the UN Conference for Trade and Development (UNCTAD), Kraków is also a significant, emerging, city location for investment in global BPO projects (Business Process Outsourcing) in the world. Poland now ranks as the 6th most attractive country for Foreign Direct Investment (FDI) in the world. Up from 12th last year and puts Poland ahead of all other European Union countries.

The Economist was tipping Poland a while back “Poland has never been more secure, richer or better-run.” And now the Financial Times is featuring positive investment stories about Poland and its growing influence as a dynamic, outsourcing and shared services centre for the World’s biggest companies

“Poland’s medieval capital is well known as a tourist magnet, but away from the market square, royal castle and gothic churches, the office parks of suburban Kraków are home to one of the most dynamic shared services markets in the world. The sector provides more than 25,000 jobs and companies such as Lufthansa, Shell, Google and HSBC have set up back-office operations in the city.”

Much rented accommodation has been snapped up by workers for the likes of Capgemini, the consultancy and Motorola, the US electronics group. Computer workers in new office parks are becoming a driver of the local real estate market in Kraków. Office stock in the city has reached 517,000 sq m, according to DTZ, the property company. That’s not to mention the England Football team basing itself in Krakow for the UEFA Football Championships.

Warsaw Property

Kraków, whilst dynamic in the BPO sector, is second to Warsaw in the Polish office market. The capital, Warsaw, attracts a wider range of clients and is starting to become expensive, due to higher labour costs (labour accounts for about 80 per cent of the operational costs of a BPO investment), low unemployment and office costs that are close to €20 per sq m in the centre of the city, compared with about €13 in Kraków. Host to UEFA Football matches in 2012, the profile of this City will be raised.

What are the drivers of success of the Polish Property Market?

Poland’s private sector has generated several billion-dollar fortunes in banking, telecoms, beer and auto parts. The European Commission forecasts that Poland, Europe’s 6th largest economy by purchasing power, is set to grow quicker than Germany in 2012, +2.5% versus Germany’s 0.6%

Property investors, seeking stable, capital growth and promising rental prospects turn to Kraków  where yields can be 5%+. As international employers seek to bring subsidiaries to Poland and recruit more people in city centres and special economic zones, demand for property rises.

Whilst Poland is in the EU, it has not yet adopted the Euro and Sterling has strengthened against its local currency the Polish Zloty. Sterling is now back to around five Polish Zloty to the pound, up by more than 25% on the preceding 12-18 months. This means property can be 25% or more, cheaper.

Polish Property Agent, Property Venture® has centrally located Krakow apartments available starting from  PLN 387,514 or c.£77,500 for 43 sqm 1 bed apartments.

Our clients get regular updates on hot deals and the latest changes in the property market. Want these? Go here

Please get in contact to chat your plans through by telephone +44 (0) 1932 849 536 or contact us

Property Venture® is an award-winning, UK-based agency for overseas property who helps people buy investment property and holiday homes in Europe, more easily and safely than they can on their own, because we offer grounded common-sense advice.

The focus is mainly greater Europe: Poland property, UK investments, Spain property, Turkey property, Cyprus property

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