Krakow, one of Poland’s oldest and most beautiful cities, has been attracting investors from across the country and abroad for years. The city’s dynamic growth, rich cultural offerings, and large student population make Krakow's real estate market highly appealing. But is it still worth investing in Krakow’s property market before the end of 2024? In this article, we’ll take a closer look at current trends and market forecasts to answer that question.
Current Situation on the Krakow Real Estate Market
In recent years, Krakow’s real estate market has seen steady price growth. Despite challenges related to the pandemic, demand for apartments and houses has remained strong, and property prices continue to rise. According to market reports, apartment prices in Krakow increased by an average of 8-10% in 2023 compared to the previous year. Several factors are driving this trend:
- High influx of students and young professionals – Krakow is one of Poland’s major academic centers and an important business hub. Every year, thousands of new students arrive in the city, fueling demand for rental properties.
- Infrastructure development – In recent years, Krakow has been rapidly developing its infrastructure, making it an even more attractive place to live. The construction of new roads, expansion of public transportation, and investments in green spaces have all positively impacted residents' quality of life.
- Tourism – As one of Poland’s most frequently visited cities, Krakow draws tourists from around the world. The growth of tourism drives demand for short-term rentals, which in turn contributes to rising property prices.
Forecasts for the End of 2024
Experts predict that the upward trend in Krakow’s real estate market will continue at least until the end of 2024. However, price increases may not be as dynamic as in previous years. Several factors could impact the market:
- High interest rates – If the Monetary Policy Council maintains high interest rates, this could affect the borrowing capacity of potential buyers, reducing demand in the property market.
- Inflation and construction costs – Rising costs of building materials and inflation could lead to higher prices for new apartments, potentially limiting availability for the average buyer.
- Increased supply of new apartments– Developers in Krakow are planning to complete many new residential projects, which could increase supply and help stabilize prices.
Is It Worth Investing?
Despite the challenges, investing in real estate in Krakow can still be profitable, especially for those thinking about long-term rentals or purchasing for personal use. For investors interested in short-term rentals, Krakow continues to offer attractive returns thanks to its thriving tourism sector and strong demand for accommodation.
However, before making a purchase, it’s important to thoroughly analyze your financial situation and carefully consider the location you plan to buy in. Good transportation links, proximity to universities, and the city center are key factors that can influence the future value of your property.
Conclusion
Krakow remains one of Poland’s key real estate markets. While price growth may slow, the city still offers many attractive investment opportunities. For those planning to buy an apartment in Krakow, September 2024 may be a good time to make a decision – especially if you’re thinking about long-term returns.
If you need assistance in finding the perfect property in Krakow, contact us at Novak Estate. Our team of experts will help you find a property that meets your expectations and brings long-term benefits. https://nestate.pl/en/contact/