Poland’s Emerging Trends in International Property Investments

As a seasoned real estate broker, I have been carefully tracking the evolving patterns in the worldwide real estate market. One trend that has emerged prominently is the increasing propensity of Polish citizens to invest in properties abroad, particularly in Spain, Bulgaria, Italy, Cyprus, Portugal, Greece, France, Germany, UK, USA, Dominican Republic, Canada, New Zealand, Belgium, Netherlands, Switzerland, and Austria.

The Evolving Landscape of Polish Property Investments Abroad

With property prices in Poland continuing to rise, more Poles are choosing to invest their savings abroad, often relocating their entire families. High property prices in Poland are not the only reason for such decisions.

Safety and Lifestyle Changes

Will this year be equally record-breaking? It appears that since mid-February, Poles have been buying properties abroad in droves. Three new destinations are also on their radar. Additionally, an increasing number of people are deciding to completely move out of the country. The reasons for these decisions are often surprising.

Among buyers, two trends are visible. Some people openly admit that the decision to buy property abroad is primarily a matter of safety. Many people say outright that they fear threats from Russia and potential armed conflict in Poland. Another reason for buying is the desire for a complete change of living place. This group “throws everything”, sells property in Poland, and moves abroad. With this decision, these people move their entire family, and children are enrolled in international schools or kindergartens.

Among those who decide to take this step, there are, among others, people working in the IT industry, who can practically work anywhere. Another group is wealthy retirees who are moving out of Poland.

Spain: The Iberian Appeal

At the beginning of 2024, demand for Spanish properties rose again. ?In the first quarter of 2024, Polish citizens purchased a staggering 800 homes and apartments on the Iberian Peninsula, according to data from Registradores de Espana. This represents a 21% increase from the previous quarter and a threefold increase from the pre-pandemic first quarter of 2019. According to bankers, last year was also exceptional in this regard. In the second quarter of 2023 alone, our compatriots bought 18% more properties in Spain than in 2022. Interestingly, as much as 90% of transactions in this market were made without a mortgage.

Polish buyers ranked ninth among foreign investors, accounting for 3.72% of the market share. The motivations behind these purchases are diverse. The experiences of the pandemic, the emergence of hybrid work models, and the situation in Ukraine in 2022 have led many Poles to consider properties on the Costa del Sol not just as holiday destinations, but increasingly as permanent residences. Remarkably, 75% of transactions made by Poles involved properties from the primary market.

What do Poles buy most often in Spain? The most popular purchases are apartments in the price range from 200,000 to 300,000 EUR. For nearly a million PLN (200,000 euros is over 900,000 PLN), in Warsaw at current rates (the average is over 15,000 PLN per sq m), you can buy an apartment with an area of approx. 66 sq m. Therefore, many people prefer to spend this money abroad. For this amount, you can become the owner of an apartment in Spain with a living room and two bedrooms, furnished practically turnkey, because this is what the developer standard looks like there. In Poland, for a similar apartment in a luxury resort complex in Sopot, you have to pay almost 2 million PLN (approx. 30,000 PLN per sq m). Apart from Spain, among our Poles, popular directions dominate. The most popular were apartments with an area of 100-250 sq m, as well as detached houses with an area of 250-600 sq m. Apartment prices ranged from 450,000 EUR to 1.9 million EUR, and we paid for houses from 1.5 to 5 million EUR.

Bulgaria: The Emerging Destination

Spain continues to be the primary target for Polish property buyers abroad, but a new destination is emerging - Bulgaria. The country’s stable environment, consistent rental income potential, and capital gains prospects make it an attractive investment destination.

Dominican Republic: Gaining Importance

Against the backdrop of foreign real estate markets of high attractiveness and profitability, in addition to Spain, the Dominican Republic also stands out. This country is special against the entire Latin America, as it achieves the highest economic growth rate year after year. The average price per square meter of an apartment located there is still very attractive from the perspective of a Polish investor and is currently at the level of 9,000 PLN. Compared to the largest Polish cities, this is almost a promotional rate. For comparison the price per square meter in Warsaw in February was over 17,000 PLN, in Krakow over 16,000 PLN, in Wroclaw over 13,000 PLN, in the Tri-City about 15,000 PLN, and in Poznan - over 12,500 PLN.

The attractiveness of investing in the Dominican Republic is largely determined by strong legal frameworks protecting property rights and a policy aimed at attracting foreign capital. For example, according to experts from the Polish-Dominican Chamber of Commerce, on the Dominican primary market there is a possibility of paying in convenient, non-interest-bearing installments, which additionally facilitates the purchase and in practice guarantees an increase in the value of the property by over 30% over 2 years.

In the Dominican Republic, there are no restrictions on the purchase of real estate by foreigners. In the eyes of the law, they are subject to exactly the same rules as Dominicans, and only a passport is enough to buy. Instead of making it difficult, the Dominican Republic facilitates - for many years there has been a special office there, the Center for Investment and Export of the Dominican Republic, which deals with the promotion of foreign investments in the country.

It is worth paying attention to the eastern outskirts of the Dominican Republic, among others due to the richly developed infrastructure and the proximity of the international airport located on the Punta Cana cape. Additionally, this part of the country boasts charming beaches and luxury resorts, which makes it attractive for both tourists and investors looking for a “second home”, which they will be able to use especially in the autumn-winter months.

The prices of apartments from the primary market are exceptionally attractive here and very competitive compared to Polish real estate. However, observing the market situation is key. The good time for investment will not last forever, greater interest means higher apartment prices in the future.

Italy: The Timeless Appeal

Italy continues to be a primary target for Polish property buyers. Despite economic slowdowns, the real estate market in Italy has remained relatively stable, especially in major cities like Rome, Milan, Turin, and Florence.

Cyprus: The Mediterranean Gem

Cyprus has always been a sought-after destination for property investors, retirees, and holidaymakers alike. In 2024, foreign investment is expected to continue to flow into the market, driving demand for both residential and commercial properties.

Portugal: The Atlantic Attraction

Portugal’s real estate market is under the microscope, with investors and buyers keen to understand the evolving landscape. Experts foresee investment volumes swelling by up to 15% over 2023’s figures.

Greece: The Aegean Allure

The Greek real estate market is gaining momentum, with new developments increasingly incorporating green spaces and energy-efficient designs. The rise of remote work has altered the landscape of rental markets, as more individuals seek properties that can accommodate home offices and co-working spaces.

France: The Gallic Charm

France continues to be a popular destination for Polish property buyers. The French real estate market is characterized by its stability and potential for long-term growth.

Germany: The Teutonic Temptation

Germany’s real estate market is known for its robustness and resilience. In 2024, the German market is expected to witness a surge in foreign investment, particularly in the residential sector.

UK: The British Beacon

The UK property market has seen a significant increase in activity. The UK’s diverse property market offers a range of opportunities for Polish investors.

USA: The American Aspiration

The USA continues to be a popular destination for Polish property buyers. The stable economic environment, coupled with a diverse range of property types and locations, makes the USA an attractive option for Polish investors.

Canada: The Canadian Connection

Canada’s real estate market is known for its stability and strong growth potential. In 2024, foreign investment is expected to continue to flow into the market, driving demand for both residential and commercial properties.

New Zealand: The Kiwi Kingdom

New Zealand’s property market is experiencing a resurgence, with increased demand for properties and a stable economy making it one of the most lucrative places to invest in real estate.

Belgium: The Belgian Bridge

Belgium’s real estate market is known for its stability and strong growth potential. In 2024, foreign investment is expected to continue to flow into the market, driving demand for both residential and commercial properties.

Netherlands: The Dutch Domain

The Netherlands’ real estate market is known for its robustness and resilience. In 2024, the Dutch market is expected to witness a surge in foreign investment, particularly in the residential sector.

Switzerland: The Swiss Sanctuary

Switzerland’s real estate market is known for its stability and strong growth potential. In 2024, foreign investment is expected to continue to flow into the market, driving demand for both residential and commercial properties.

Austria: The Austrian Avenue

Austria’s real estate market is known for its robustness and resilience. In 2024, the Austrian market is expected to witness a surge in foreign investment, particularly in the residential sector.

Conclusion

The latest data reveal that Poles continue to make up a significant group of property buyers in these countries. The reasons for this unusual trend are multifaceted, ranging from economic considerations to lifestyle choices.

As an experienced real estate broker, I am well-equipped to help you navigate your property investments around the world. Whether you are a potential client or a partner, I invite you to get in touch. Please feel free to contact me for further discussion. Let’s discuss how you can leverage these trends to your advantage.