More and more luxury in Warsaw. Is the capital catch up with Paris and London?

Warsaw is slowly joining the group of European capitals, in which luxury real estate is becoming an increasingly noticeable element of the market. According to the Henley & Partners report, Poland – with Warsaw at the forefront – today belongs to the fastest growing markets of premium clients in the world.

Over the past decade, the number of wealthy people in the country increased by as much as 83 percent. This makes the capital become an increasingly important point on the map of European luxury, attracting both the attention of investors and people looking for prestigious addresses.

Local capital by force of the Warsaw market of luxury real estate

CBRE experts emphasize that the market of luxury real estate in Warsaw is mainly driven by local entrepreneurs and wealthy people. This distinguishes the capital from such metropolises as London or Paris, where international capital plays a dominant role. Warsaw is still building its identity in the premium segment – there is still a lack of real estate signed by world brands or the trend of having many prestigious residences in various cities in the world. In this respect, the capital of Poland is closer to such markets as Praga or Budapest, which develop at a similar pace and remain dominated by local investors.

Where does Warsaw luxury live?

CBRE experts point out that although the market is still developing, in Warsaw today you can indicate places that meet the criteria of the premium segment.

– In the capital you can already indicate specific locations that meet the premium market criteria. Śródmieście, around the Royal Łazienki and the most prestigious parts of Powiśle are places where luxurious investments are becoming more and more visible – says Katarzyna Borkowska, Head of Residential Sales and Letting, Signature Estates, and CBRE.

It indicates that the offer prices in these locations can reach even over PLN 20 million for the largest premises, and rates per square meter in unit cases exceed PLN 70-80 thousand.

– Importantly, in the most elegant buildings in Warsaw we still note many transactions in which the area of apartments is much smaller than in analogous foreign investments – often does not exceed 50 sq m – at a high price per square meter. Therefore, the increase in the importance of the middle class, which is able to invest a large sum in a small apartment – notes the expert.

Warsaw on the road to prestige

CBRE specialists point out that although Warsaw still has a long way to join the world luxury centers, the direction of development is clear. The growing number of millionaires, aspirations of people with high financial status and changing expectations as to the quality of life make the Polish capital becoming more and more attractive to the premium segment.

– Warsaw does not compete with Milan or Zurich yet, but builds its own definition of luxury – a more local, conscious and embedded in the realities of a dynamically developing market – experts from CBRE believe.