Krakow Property Market Update
July 2006

By Andrew Balfour

The Krakow property market continues to go from strength to strength in recent months. Ongoing interest in the market from overseas investors, particularly the British and Irish, coupled with a lack of supply of the most desirable properties, is pushing up prices.

The most sought-after area continues to be the old town, within the green belt (planty). Prices for renovated apartments within the old town are now around 4000-5000 EUR/m² – you know prices are high when they are quoted in EUR rather than PLN.

Outside of the planty, residential areas within the second ring road continue to be favoured, particularly areas to the west, including Nowy Swiat and Piasek. Several off-plan new build developments have been sold recently. Angel Plaza, on Zwierzyniecka Street (behind the Sheraton Hotel), is completely sold out at prices of approximately 10000 PLN/m². Sobieski Residence from Bryksy Group is being sold off-plan in Lobzowska Street, and there is only a handful of apartments still available at prices between 9000-12000 PLN/m². Apartments in renovated kamienicas (old townhouses) in these areas are being marketed for up to 14000 PLN/m² off-plan.

The Jewish district, Kazimierz, is also a favourite destination for investors and prices are rising, though are still lower than the districts mentioned to date. The gentrification of this area continues apace, with a growing array of restaurants and bars. Several luxury new-build developments are being sold off-plan in the area at up to 12000 PLN/m², though renovated apartments are still available sub-10000 PLN/m².

The most talked about district in Krakow at present is Old Podgorze. After the old town and Kazimierz, Podgorze is the third old part of Krakow and was once a city in its own right. During the second world war, Podgorze was the site of the Jewish ghetto and Schindler’s factory, and has a beautiful market square and churches. Whilst Podgorze is still somewhat ‘rough and ready’, and lacks the café and restaurant culture of Kazimierz and the Old Town, it is still close to the river and city centre, and over the next 5-10 years has excellent potential for those who have been priced out of the old town and surrounds. Prices for new-build developments in Podgorze are approx 6000-8000 PLN/m², and older apartments can be picked up for similar amounts.

Another area which should definitely not be discounted is Salwator. Nestled between the Wisla River and the vast Blonie Field, it contains some lovely quiet residential streets. Prices are on the rise, but the investor can still expect to pay in the region of 7000-10000 PLN/m².

For those who have been priced out of the central areas of Krakow, new-build developments in the suburbs are a cheaper option. Primarily marketed towards the burgeoning Polish middle class, and attracting largely young first-home buyers, these developments are being sold off-plans for prices around 3500-6000 PLN/m². Whilst such suburban developments are often high-rise, the suburbs of Krakow are well served by local amenities and generally have good transport links to the city centre. Areas in which lots of new development is occurring include Pr¹dnik Czerwony, £obzów, Dêbniki and Bronowice.

A last option to consider is new developments taking place in Krakow’s surrounds. House and land packages within or just outside the city limits are increasingly available. These properties are still within 10km of the city centre, but offer detached or semi-detached housing with a private garden. Prices for the housing can start from 2500 PLN/m² with an additional charge of around 10000-15000 PLN for each 10mX10m parcel of land it sits on.