Premium real estate remains a strong choice for secure capital investment, according to Walter Herz’s new Luxury Residential Agency business line. Market analyses show that luxury home and apartment valuations in Poland and Europe are rising significantly faster than standard housing. Regardless of market conditions, high-end property values in Poland increase by at least 10 percent annually. Luxury housing starts at PLN 40,000 per sqm, with prices in the most exclusive locations reaching PLN 100,000 or more per sqm.
Luxury Profits
“Premium real estate not only retains its value but also consistently gains it. The group of buyers interested in these properties consists of experienced negotiators and market experts. They know that luxury real estate is the most resistant to market fluctuations, economic cycles, and crises. The pool of consumers in this market is growing. In Poland, the supply of top-quality properties is limited, which is why their prices are steadily increasing. Buyers record investment gains of several dozen percent, and rental yields reach 9-10 percent annually. There is no more profitable option than the premium real estate market,” says Katarzyna Goryszewska, Head of Walter Herz’s new business line Luxury Residential Agency.
In the Polish market, luxury real estate prices are significantly lower than in Western Europe. The UK has some of the highest rates on the continent. In London, the average price per square meter in this segment is approximately €30,000. Prices are similar in Monaco and other top-tier global locations like New York and Hong Kong. For instance, Amsterdam is about half as expensive. The high prices in London result in a lower number of transactions compared to more affordable cities like Paris and Madrid. In the French capital, the average price per square meter in the premium market is €23,000, which is comparable to, among others, Sydney.
In the current geopolitical situation, European cities are gaining importance at the expense of other global locations popular among premium clients. In recent years, Europe has seen a greater influx of investors from North America. The number of wealthy Asian buyers is also growing, with many favouring European locations and choosing countries like Spain, Portugal, and Italy. Global investors are now more frequently targeting European cities, particularly those in the south. Europe’s significance is rising compared to North America and Asia, which have traditionally been considered key markets for premium real estate investment.
Warsaw Holds One-Third of Poland’s Luxury Market
In Poland, the premium real estate sector continues to expand, although its growth rate has slowed, aligning with global trends. The Polish luxury real estate market is relatively young, with its assets constituting only a small percentage of the overall housing market. The value of Poland’s premium real estate is estimated at PLN 3.5 billion.
About 30 percent of Poland’s luxury real estate is concentrated in Warsaw. Premium listings can primarily be found in major cities, with most properties located in Warsaw, Gdansk, Wroclaw, Cracow, and Gdynia. Luxury housing is also available in resort towns.
Among the ongoing projects, one notable development is the 15-storey luxury apartment building Flare by Archicom, located on Grzybowska Street in Warsaw. It will offer 76 apartments, including exclusive penthouses. The company is also developing an apartment building at 7 Miedziana Street in the capital, featuring an intimate cinema room, a fitness and SPA area, a club room, and a bar, which is part of the mixed-use Towarowa 22 complex.
Meanwhile, Serenus, a company affiliated with the publicly listed developer BBI Development, is developing land right next to Ogrod Krasinskch Garden and plac Bankowy Square in Warsaw. Also, the exclusive Villa Bogoria, offering 35 premium apartments, is being built on Dluga Street, adjacent to the Royal Arsenal building.
In Gdansk, a new premium investment by Euro Styl is launching near Nowa Motlawa. The Esencja apartment building in Dolne Miasto will stand out with its ornate facade.
Poland’s most prestigious properties include Warsaw’s Złota 44 and Cosmopolitan Towers, as well as the Foksal Residence. In Cracow, Angel Wawel and Browar Lubicz are notable. In Wroclaw, the mixed-use Ovo complex and the Sky Tower skyscraper stand out. Gdynia’s Sea Towers and Poznan’s Apartamenty przy Warzelni also belong to this category.
A Diverse Group of Investors
“When it comes to premium real estate buyers, several client groups can be distinguished. Often, these are affluent individuals with Polish roots who have settled worldwide but feel the need to own property in their homeland. Another group consists of businesspeople starting operations in Poland. Tourists who have fallen in love with the country also make purchases. Investors focused on future profits, as well as professionals and individuals seeking to showcase their prestige, are also active in this market. A growing segment of premium property buyers in Poland consists of wealthy foreigners, primarily from Ukraine, Belarus, and Turkey. Luxury rentals attract managers, foreign investors, Polish entrepreneurs looking for homes near their business locations, children of business owners starting their studies or jobs in a particular city, and tourists,” says Katarzyna Goryszewska.
Transactions in the premium real estate sector involve impressive sums. Last year, a two-storey, 400 sqm apartment on Spichrzów Island in Gdansk was sold for PLN 24.8 million.
Two years ago in Cracow, Angel Poland Group sold a 700 sqm apartment for PLN 15 million in the Angel Wawel building, located at the intersection of Sukiennicza and Koletek Streets in Cracow. That same year, a 480 sqm apartment on the 50th floor of Warsaw’s Złota 44 was purchased by an investor for PLN 22.9 million and resold for a profit in the fall of last year. Another apartment in this luxury tower changed hands in a deal exceeding PLN 20 million.
Moreover, a luxurious residence in Warsaw’s Żoliborz district was sold for PLN 50 million. A 340 sqm apartment on Szara Street in Warsaw was sold for PLN 20.4 million, while a luxury apartment on 18 Topiel Street fetched PLN 10.2 million.
