Residential districts, prices, and property types in the Krakow Market.
Updated 01.11.06
The residential property market of Krakow is becoming an increasingly popular magnet for investment, both foreign and domestic, so prices are rising. We still see Krakow as being an outstanding investment opportunity, with significant room for further capital growth. Unlike the majority of Polish cities, Krakow escaped the bombing of the Second World War in tact, so the period buildings are original.
The Old Town
Unsurprisingly, prices in Krakow are highest within the old town, a UNESCO protected site, and one of Europe’s most well-preserved medieval cities. Life in the city revolves around the Rynek (old town square), the largest in Europe. Many fine cobblestone streets surround the Rynek. A combination of lack of supply and the desirability of the location means that residential prices in the old town are currently ranging from 8,500-14,000 PLN/m2.
The city centre districts outside of the Planty
Just outside of the planty, the park which surrounds the old town, but still within a 5-10 minute walk of the Rynek, prices are more reasonable, ranging from approximately 8,000-14,000 PLN/m2, depending on the condition and quality of the property.
The town centre region to the West and North-West of the old town – e.g. Nowy Swiat, Piasek - tends to be marginally more desirable than the East, as the roads are both quieter and leafier, particularly within the second ring road which is easily visible on a map. In these high-class residential areas, you will find an abundance of beautiful turn-of-the-century architecture which is so desired by many foreign investors.
Kazimierz
The old Jewish district, Kazimierz, is a short distance to the South-East of the old town. Prices are comparable to the districts just outside the planty described above (8,000 to 12,500
PLN/m2), and the area is equally desirable, but for different reasons.
Kazimirerz was for many years run-down, but is gentrifying rapidly and is now identifiable not only by its Jewish history (synagogues, museums, cemeteries) but also by its cosmopolitan café, bar and restaurant scene. It is also the bohemian hub of Krakow, home to galleries and the scene of regular cultural events.
As an example, if you wished to purchase a 1 bedroom 50 m2 unit within a 7 min walk of the city centre or perhaps in Kazimierz, you should expect to pay approx 9,000 pln/m? for a renovated or good condition property meaning a cost of 450,000 PLN (plus purchase costs of approx 7%), which is approx 120,000 EUR (83,000 GBP).
Podgorze
The Podgorze district is characterised by turn of the century architecture and perhaps the only truly distinct high street location outside of the city’s old town, along the road of Kalwaryjska/Limanowskiego Street. Along this high street is also the unique and attractive Rynek Podgorski market square.
Podgorze is an appealing residential area for locals with the open space provided by its two parks, and its border on the Wisla river. The area is currently well established as a ‘service’ area, with many utility shops providing amenities such as car repair service centres, plumbing equipment shops, fitting shops etc.
The Podgorze distict is well connected to Krakow’s Old Town by tram and bus through the major arteries of Krakowska Street and Starowilsna Street. Travel time by tram is approximately 5 minutes and by foot approximately 15 minutes. It is also well connected to out of town locations by tram and bus.
Historically, Podgorze has been largely overlooked by the Krakow property market but has always been favoured by students as a less expensive but convenient location in which to live. However, more recently price increases in the in the core city centre locations, have resulted in a classic property price “ripple” effect outwards, and areas such as Podgorze have become increasingly desirable. Today, Podgorze is considered to be the most up and coming district with the most potential for development and capital growth within Krakow. Many investors and developers are now casting their eyes over this area as a sound investment location.
Anecdotal evidence of the regeneration of Podgorze is everywhere:
- High street has been completely resurfaced, with new tram lines and underpasses installed throughout.
- New four star hotel on the river front being built by Ecco group.
- Recent overhaul of Podgorze’s Plac Bohaterow Getta square.
- Zoning project of Zablocie near completion which covers significant part of Podgorze aimed at facilitating development of this previously industrial area.
- New shopping plaza Galaria Kazimierz completed in March 2005 within five to ten minutes walk from Podgorze.
- Wave of new residential developments in the area.
- Wistula factory on river front recently changed hands to a local property developer.
- Schindler’s factory to be renovated into an art museum by local entrepreneur. See http://news.bbc.co.uk/2/hi/entertainment/4633583.stm. Krakow deputy mayor Tadeusz Trzmiel was recently quoted as saying: "The establishment of a museum in this historic factory is part of the rehabilitation of the industrial area of Zablocie”.
Currently prices in Podgorze range from approx 6,500 pln/m to 10,000 pln/m2 for top end new builds and renovated historic properties.
Other desirable areas
Nowa Wies, Czarna Wies, Zwierzyniec: these districts are outside the second ring road to the west of the old town, and offer leafy streets with a combination of period and newer buildings. These areas are located close to the AGH University, beautiful Park Jordana and the vast Blonia field. Walking distance to the old town is approximately 15-20 minutes.
Kleparz: north of the old town, 5-10 minute walk. Near Nowy Kleparz market and Dluga Street, a main shopping thoroughfare.
Stradom: located between the old town and Kazimierz, many desirable buildings and quiet streets.
Wesola: to the East of the old town, many leafy streets. However, the area is intersected by a main train line.
Salwator: located slightly South-West of the old town, this district is sandwiched between Krakow’s largest park, Blonia, and also the Vistula river. It is considered by locals to be one of the most desirable residential districts in the city, and is much in demand because of its relative tranquility and short distance from the city centre.
Wola Justowska: this region is again to the West of the city, but further out beyond the greenery of Blonia and Salwator, en-route to Balice airport. This is the district of choice for Krakow’s wealthy and is dotted with substantial residences which often match the price per square metre of the more desirable central districts.
Suburban Krakow and new-build residential developments
Further out from the centre, prices are significantly lower, with a large supply of new build developments, which are primarily being bought by Poles. Such properties sell for 4,000-7,000 PLN/m2 and are often sold-out before building begins.
If you are considering buying such a property off-plan, it is advised that you take the time to visit the site. Whilst some developments can appear attractive on paper, sometimes the surrounding buildings, such as Soviet built panalaks (blocks of flats) may detract considerably from the property in question.
Off plan and new build developments in the centre of Krakow
New build developments do occur in and around the centre, but are less common as brown-belt land is scarce. A quality central new-build development sells for 7,000-8,000 PLN/m2 and will most likely come with parking (typically 25,000-40,000 PLN + VAT per space). Centrally-located developments are more typically renovation projects of traditional town houses/buildings (Kamienica), although frequently new extensions or floors are added. Such projects are becoming increasingly popular with foreign investors as it allows them to purchase a tradition apartment, renovated, with new installations. They are also sold off-plan and are more often than not sold out in the early stages of construction, however, rarely come with parking facilities, which can be viewed as a disadvantage.
Prices in Krakow compared to Warsaw
In Krakow, as a rule of thumb, you should expect to pay approximately two-thirds of the cost of comparable property in Warsaw. However, it is difficult to make comparisons between the two cities as the geographical layouts are very different. Warsaw is much larger and more spread out, so districts overlap and are more difficult to define than in Krakow.
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