Update: Secondary Market In Krakow
August 2006

By Andrew Balfour

The central area of Krakow is dominated by old tenement buildings (Kamienica in Polish). Many of these ornate buildings in the heart of the city date from the late 19th century, whilst areas a little further out are dominated by less aesthetically attractive buildings from the 1930’s.

With regards to the second-hand market in central Krakow, there are several possibilities for what you can buy:

1. Renovated apartment in renovated building.
2. Renovated apartment in unrenovated building.
3. Unrenovated apartment in renovated building.
4. Unrenovated apartment in unrenovated building.

For areas near old town and Kazimierz, the most desirable properties fall into category number 1. Prices for such apartments are already high – within the old town itself, prices are now approaching 20000 PLN/m2. Within 10 minutes walk of the old town, in nice residential streets, expect to pay in the region of 12000-14000 PLN/m².In addition, it should be noted that when a entire (empty) building is renovated, the apartments will normally be sold as a shell for individual finishing. This will add approximately 1000 PLN/m² to the cost, depending on the quality of materials etc.

Category number 2 is more complicated, because there needs to be agreement between all owners about doing work on the façade, common areas and installations of the building. Prices for such apartments can still be up to 10000 PLN/m².

Category number 3 is a good option – we recently sold an apartment of 48m2 in the heart of Kazimierz in a building which is being completed renovated for 9500 PLN/m². The internal renovation of the apartment will cost approx 1000 PLN/m².

Perhaps the greatest potential for capital growth is in category number 4. In areas close to the old town and Kazimierz, prices for such apartments are approximately 6500-7500 PLN/m². In most cases, there is at least a plan to renovate the building, though this may take time. The other issue is finding reliable people to carry out renovation work, but this is something we can help you with. Most foreign buyers tend to avoid Nr 4, because of the potential pitfalls in old buildings (such as old installations etc) and being too far away to monitor and organize renovations.

Contact us for details of properties currently available on the secondary market in Krakow at present.