Small apartments are the most expensive, but it is not their price that is growing the fastest
The difference in the price of 1 sq m of apartment on the primary market between Warsaw and Zielona Góra increased to PLN 7,708. This is important information for people who treat a flat as an investment: differences in the profitability of investing in a flat also depend on its size. We achieve the best rate of return on medium-sized premises.
According to the latest quarterly report of the National Bank of Poland, the asking price of 1 square meter of an apartment in Warsaw increased from PLN 14,880 to PLN 15,561 in just one quarter. Whereas in Zielona Góra from PLN 7,602 to PLN 7,853.
Investing in real estate. Small apartments are becoming more expensive the fastest
Zielona Góra is definitely the cheapest among the 17 largest housing markets in Poland. Average prices just under PLN 9,000. PLN apply to Kielce and Olsztyn. In 10 out of 17 cities, prices have already exceeded the PLN 10,000 mark. PLN (NBP data for Q4 2023).
– The fact that the smallest apartments are the most expensive in terms of price per 1 sq m is no secret to anyone, but it is surprising that the largest apartments with an area of over 90 m have gone up in price the most.2. – says Kuba Karliński, founder of Magmillon, author of the book “Let's make money on real estate”, in an interview with MarketNews24. – The price of the largest apartments per 1 sq m is slightly lower than the price of small apartments with an area of approximately 30 m2.
Interest in large apartments has been growing since the pandemic. Demand is still high, and such premises are more expensive per square meter2 by approximately 20 percent from medium-sized apartments.
When buying an apartment for investment, it is worth paying attention to the fact that medium-sized apartments bring the most favorable rate of return on investment resulting from the amount of negotiated rent.
Will KPO increase real estate prices?
Politicians are happy that after more than 3 years of waiting, our country will receive access to money from the National Reconstruction Plan. The Ministry of Funds and Regional Policy announced that the first PLN 1 billion from the National Reconstruction Plan (KPO) was allocated for investments. The most money went to the Clean Air program.
We must hurry to spend the money, because the deadline for this will expire at the end of August 2026. Accelerating public investments may cause housing developers to run out of workers, and the prices of construction materials and labor will go up. Thus, increased “public” demand in a relatively short period of time may increase housing prices.
Marek Wielgo, an expert of the website rybprzeotny.pl, admitted in response to questions asked by the RMF FM editorial team that there is a risk that “the euro river, which will soon flow to our country, will accelerate the pace of apartment price growth.”
– At the same time, developers, road, railway and public utility construction will experience a boom. The accumulation of investments may result in a sharp increase in the prices of many construction materials and labor costs. Therefore, those who expect stabilization or even a decline in housing prices may make a mistake, he added.
Vice-president of the National Chamber of Real Estate Management (KIGN), Piotr Stawicki, predicts that “investors will even recruit specialists in the fields in which these works or activities will be carried out.”
We write more about this in the text below.
