Growing demand for Polish flats among foreigners
2024-09-26
In recent years, more and more foreigners, especially from EU countries and Ukraine, have decided to buy flats in Poland, both for investment and residential purposes. Stable economic growth and low interest rates have sustained the growing demand for local housing until 2019. Flat prices were rising rapidly, especially in large cities such as Warsaw, Cracow, Wroclaw and Gdansk. The outbreak of the COVID-19 pandemic in 2020 temporarily froze the housing market. Many transactions were put on hold and developers delayed new projects. Despite the initial slowdown, housing prices did not fall. Demand recovered quickly, driven by low interest rates and growing trend of investing in real estate as a safe investment in uncertain times. The gradual increase in interest rates reduced the creditworthiness of Poles, which resulted in a decline in the number of loans granted in 2022. Developers continued to keep prices high, mainly due to rising construction costs. In 2023, the “Safe Loan 2%” support programme was launched, which boosted demand in the segment of flats purchased by young people, as well as the number of granted loans. According to the data presented in the AMRON-SARFiN Report, 162 375 loans were granted in 2023, which was higher by 28.55% compared to 2022 and 36.69% lower compared to the record year 2021 in terms of the number of new loans. The value of newly granted mortgage loans in the indicated period amounted to PLN 62.763 billion, which was 43.81% more compared to the previous year and 26.82% less compared to 2021.
CHART 1. NUMBER AND VALUE OF NEW HOUSING LOANS GRANTED FROM 2013 TO 2023
source: self-study based on the SARFiN System data
According to data from the Statistics Poland (GUS) on the yearly sales and value of residential properties, the Polish housing market experienced significant shifts between 2013 and 2022. The volume of sold apartments grew steadily until 2019, but the onset of the pandemic led to a drop in sales in 2020. Despite this decline, the total value of transactions kept rising, peaking in 2022, which was mainly the result of increasing housing prices.
CHART 2. NUMBER AND VALUE OF DWELLINGS SOLD IN TOTAL MARKET TRANSACTIONS FROM 2013 to 2022
source: self-study based on data of Central Statistical Office
As stated in the Ministry of the Interior and Administration (MSWiA) Report on execution of the act on real estate acquisition by foreigners, in 2023 foreigners purchased over 14 346 residential premises with a total area of nearly 834 619 sqm. This is close to the figures for 2022, when foreigners purchased 14 359 residential units covering 820 105 sqm, accounting for 6.37% of the total area of sold flats. In comparison, in 2021, the Ministry recorded 10 621 dwellings purchased by foreigners, with a total area of 629 238 sqm. This means that in 2023, the number of apartments bought by foreigners was 35.07% higher than in 2021. The proportion of residential units acquired by foreigners compared to the overall sales was 3.73% in 2020, 4.34% in 2021 and 6.37% in 2022, marking the highest percentage in the last decade.
CHART 3. NUMBER OF E
NTRIES TO REGISTERS REGARDING DWELLINGS PURCHASED BY FOREIGNERS ON THE BASIS OF PERMITS AND WITHOUT OBLIGATION TO OBTAIN THE PERMISSION AND THE TOTAL AREA OF PURCHASED DWELLINGS FROM 2013 TO 2 023
source: self-study based on the report of Ministry of the Interior and Administration (MSWiA) on execution of the act on real estate acquisition by foreigners in 2013– 2023
TABLE 1. PERCENTAGE OF DWELLINGS ACQUIRED BY FOREIGNERS ON THE BASIS OF PERMITS AND WITHOUT OBLIGATION TO OBTAIN THE PERMISSION IN TOTAL NUMBER OF DWELLINGS SOLD UNDER MARKET TRANSACTIONS IN 2013 – 2022
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
| 2.37% | 2.45% | 2.50% | 2.83% | 2.68% | 3.46% | 4.07% | 3.73% | 4.34% | 6.37% |
source: self-study based on the report of Ministry of the Interior and Administration (MSWiA) on execution of the act on real estate acquisition by foreigners in 2013 – 2012 and data of Central Statistical Office
In recent years, Ukrainians, Belarusians and Germans have been the top foreign buyers of residential properties in Poland. Ukraine has emerged as the dominant player, with its market share increasing by over 37 percentage points over the last decade. In 2013, Ukrainian citizens held 9.09% of the market, but by 2023, they purchased nearly half of the total residential space bought by foreigners. This is largely driven by migration caused by the war in Ukraine. The share of apartments purchased by Belarusians also rose considerably, reaching 13.46% and placing them second in 2023. In contrast, Germans, who led as foreign buyers in 2013, saw their market share drop significantly to 8.91% in 2023, although they still ranked third. Over the years, a noticeable decline in property purchases has been seen among citizens of France, the Netherlands, the United Kingdom and Italy.
TABLE 2. TOTAL AREA OF DWELLINGS (IN SQM) PURCHASED BY FOREIGNERS ON THE BASIS OF PERMITS AND WITHOUT OBLIGATION TO OBTAIN THE PERMISSION (BY THE COUNTRY OF PURCHASER’S ORIGIN) – SELECTED COUNTRIES IN 2013 – 2023
| country | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| Austria | 1.85% | 2.20% | 2.61% | 2.23% | 2.73% | 2.16% | 1.42% | 1.61% | 1.61% | 1.42% | 0.85% |
| Belgium | 1.38% | 1.79% | 1.40% | 1.07% | 1.02% | 1.23% | 1.01% | 1.92% | 1.62% | 0.75% | 0.81% |
| Belarus | 3.43% | 3.15% | 3.84% | 3.93% | 4.42% | 4.77% | 5.25% | 5.53% | 6.10% | 8.64% | 13.40% |
| China | 1.52% | 2.26% | 2.30% | 2.03% | 2.78% | 2.20% | 2.16% | 2.40% | 2.26% | 1.61% | 1.39% |
| Cyprus | 2.87% | 5.84% | 3.76% | 2.51% | 1.50% | 1.09% | 4.85% | 1.87% | 0.61% | 0.76% | 0.63% |
| Czech Republic | 0.76% | 1.23% | 1.05% | 1.23% | 0.71% | 1.25% | 0.62% | 0.72% | 0.98% | 1.09% | 0.85% |
| France | 5.54% | 7.13% | 5.09% | 4.74% | 5.05% | 3.96% | 3.57% | 3.37% | 2.75% | 2.36% | 1.47% |
| Spain | 2.70% | 1.89% | 1.19% | 2.53% | 2.00% | 1.48% | 1.79% | 1.27% | 1.19% | 0.98% | 1.14% |
| Holland | 4.06% | 2.86% | 4.26% | 1.49% | 2.03% | 1.62% | 1.37% | 1.70% | 1.65% | 1.48% | 1.30% |
| India | 0.39% | 0.45% | 0.65% | 0.84% | 0.79% | 0.83% | 0.74% | 1.25% | 1.25% | 1.20% | 1.25% |
| Ireland | 2.48% | 1.54% | 1.06% | 0.61% | 0.61% | 0.63% | 1.00% | 0.77% | 0.44% | 0.59% | 0.35% |
| Israel | 1.68% | 3.14% | 2.50% | 4.86% | 1.88% | 3.34% | 3.19% | 1.40% | 1.88% | 1.38% | 1.04% |
| Luxemburg | 0.62% | 1.07% | 0.81% | 0.41% | 3.39% | 0.34% | 0.38% | 0.32% | 0.18% | 1.41% | 1.20% |
| Germany | 17.97% | 15.05% | 15.75% | 14.61% | 13.19% | 15.10% | 10.86% | 10.60% | 10.70% | 9.77% | 8.91% |
| Russia | 3.79% | 3.10% | 3.69% | 2.99% | 3.09% | 2.95% | 3.00% | 3.19% | 3.36% | 2.64% | 2.05% |
| Slovakia | 0.74% | 1.20% | 0.86% | 0.94% | 0.68% | 0.79% | 1.15% | 0.59% | 0.84% | 0.61% | 0.50% |
| Sweden | 2.75% | 2.94% | 3.06% | 2.71% | 3.07% | 2.11% | 1.97% | 1.41% | 1.12% | 4.20% | 0.80% |
| Turkey | 0.38% | 0.50% | 0.83% | 0.93% | 1.02% | 1.40% | 0.79% | 1.26% | 0.85% | 0.69% | 1.04% |
| Ukraine | 9.09% | 11.38% | 15.41% | 21.74% | 23.40% | 25.89% | 31.80% | 35.78% | 39.26% | 40.85% | 46.45% |
| USA | 4.42% | 2.79% | 2.90% | 2.24% | 1.88% | 1.68% | 1.61% | 1.08% | 1.52% | 1.32% | 1.06% |
| Great Britain | 9.05% | 6.98% | 6.64% | 6.05% | 5.71% | 5.60% | 4.36% | 4.06% | 2.40% | 2.22% | 1.88% |
| Vietnam | 1.44% | 1.59% | 1.48% | 1.15% | 1.25% | 1.84% | 0.77% | 1.26% | 1.27% | 0.77% | 0.65% |
| Italy | 4.97% | 4.56% | 4.55% | 4.05% | 3.81% | 3.93% | 3.58% | 3.20% | 2.86% | 2.16% | 2.05% |
| other countries | 16.14% | 15.38% | 14.31% | 14.12% | 14.00% | 13.80% | 12.77% | 13.42% | 13.30% | 11.11% | 8.96% |
| TOTAL | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
source: self-study based on the report of Ministry of the Interior and Administration (MSWiA) on execution of the act on real estate acquisition by foreigners in 2013 – 2023
According to data presented by the Ministry of the Interior and Administration, the Voivodeship of Mazovia remains the leading region where foreigners buy real estate, consistently holding the top position. However, its share dropped from 39.30% in 2013 to 32.75% in 2023. The percentage drop may result from the growing attractiveness of other Polish regions, as well as price increases, but Mazovia still remains a key market due to its capital location and well-developed infrastructure. The second most popular voivodeship in 2023 was Lower Silesia, with its share of foreign-owned residential space growing from 13.32% in 2013 to 16.39% in 2023. The Lesser Poland Voivodeship, with its centre in Cracow, has maintained a stable market share in the real estate market purchased by foreigners, fluctuating around 12-15%. In 2023, its share amounted to 12.37%, making it the third highest among all voivodeships. The Voivodeship of Silesia maintains a relatively stable share, hovering around 6-7% with slight fluctuations in different years. In 2023, Silesian Voivodeship accounted for 6.42%. Meanwhile, voivodeships such as Lubusz, Podlassia and Sub-Carpathia have a low share in the area of dwellings purchased by foreigners, with shares under 2%, likely due to lower investment appeal and fewer job opportunities compared to larger cities and western regions of Poland.
TABLE 3. STRUCTURE OF THE TOTAL AREA OF DWELLINGS ACQUIRED BY FOREIGNERS ON THE BASIS OF A PERMIT AND WITHOUT THE OBLIGATION TO OBTAIN A PERMIT DUE TO THE VOIVODESHIP, WHERE THE REAL ESTATE IS LOCATED IN THE YEARS 2013 – 2023
| Voivodeship | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| The Voivodeship of Lower Silesia | 13.32% | 11.46% | 10.94% | 13.70% | 13.37% | 14.84% | 14.33% | 15.35% | 16.39% | 15.48% | 16.39% |
| The Voivodeship of Cuiavia & Pomerania | 2.16% | 2.12% | 1.85% | 2.54% | 2.58% | 2.05% | 2.56% | 2.50% | 2.16% | 2.40% | 2.40% |
| The Voivodeship of Lublin | 1.27% | 1.51% | 1.75% | 1.81% | 1.49% | 1.76% | 1.76% | 1.49% | 1.38% | 1.32% | 1.65% |
| The Voivodeship of Lubusz | 1.58% | 2.60% | 1.34% | 1.49% | 1.64% | 2.02% | 2.33% | 2.74% | 3.42% | 3.21% | 3.14% |
| The Voivodeship of Łódź | 4.84% | 2.95% | 3.07% | 2.34% | 2.93% | 2.84% | 3.52% | 4.85% | 4.56% | 4.17% | 4.25% |
| The Voivodeship of Lesser Poland | 8.76% | 12.12% | 12.62% | 15.29% | 15.98% | 14.38% | 14.26% | 14.63% | 11.57% | 11.45% | 12.37% |
| The Voivodeship of Mazovia | 39.30% | 35.58% | 37.63% | 35.92% | 35.11% | 35.88% | 34.52% | 31.08% | 31.81% | 32.75% | 30.54% |
| The Voivodeship of Opole | 1.94% | 1.29% | 1.38% | 1.43% | 1.60% | 1.28% | 1.66% | 1.67% | 1.67% | 1.78% | 1.76% |
| The Voivodeship of Sub-Carpathia | 0.98% | 0.86% | 1.33% | 1.31% | 0.94% | 1.05% | 1.05% | 0.93% | 1.16% | 1.31% | 1.32% |
| The Voivodeship of Podlassia | 1.58% | 1.15% | 1.13% | 1.21% | 0.93% | 1.02% | 0.85% | 1.10% | 1.26% | 1.26% | 1.20% |
| The Voivodeship of Pomerania | 6.08% | 9.93% | 7.24% | 5.82% | 5.12% | 5.22% | 5.15% | 4.17% | 4.43% | 4.37% | 5.23% |
| The Voivodeship of Silesia | 5.10% | 6.58% | 6.92% | 6.76% | 6.50% | 6.30% | 6.24% | 5.59% | 6.55% | 6.50% | 7.13% |
| The Voivodeship of Kielce | 0.41% | 0.55% | 0.40% | 0.31% | 0.47% | 0.39% | 0.34% | 0.54% | 0.34% | 0.33% | 0.36% |
| The Voivodeship of Varmia and Masuria | 1.80% | 1.76% | 1.41% | 1.04% | 1.42% | 1.46% | 1.28% | 1.33% | 1.14% | 1.14% | 1.53% |
| The Voivodeship of Greater Poland | 3.90% | 4.41% | 5.60% | 4.06% | 4.32% | 4.27% | 5.36% | 6.91% | 7.78% | 8.12% | 7.62% |
| The Voivodeship of Western Pomerania | 6.98% | 5.12% | 5.40% | 4.98% | 5.61% | 5.24% | 4.82% | 5.13% | 4.37% | 4.41% | 3.48% |
| TOTAL | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
source: self-study based on the report of Ministry of the Interior and Administration (MSWiA) on execution of the act on real estate acquisition by foreigners in 2013– 2023
In recent years, there has been a significant increase in the share of real estate purchases by foreigners in regions outside the main cities. While in 2013, foreigners bought 1 214 residential properties in regions beyond key metropolitan areas, by 2023 this figure had surged to 7 508, marking more than a sixfold increase. The share of these “other regions” grew from 39.38% in 2013 to 52.34% in 2023, reflecting a growing trend of foreign investment outside Poland’s biggest urban centres. Throughout the entire analysed period, Warsaw remained the most popular city where foreigners bought real estate. Although the Warsaw’s share of overall transactions dropped from 29.29% in 2013 to 18.17% in 2023, it still holds the top spot. Cracow follows as the second most favoured city for foreign buyers. In 2023, among premises purchased by foreigners, dwellings in Cracow accounted for 10.49% of all transactions. Lodz has seen a noticeable increase in the participation of foreigners in real estate purchases, rising from 2.76% in 2019 to 3.85% in 2023. Wroclaw also recorded an rise in interest, especially in 2016 and 2018, when its share was over 10%. More recently, the share of Wroclaw has stabilized at around 8.5% of all transactions.
TABLE 4. NUMBER OF ENTRIES TO REGISTERS REGARDING DWELLINGS PURCHASED BY FOREIGNERS ON THE BASIS OF PERMITS AND WITHOUT OBLIGATION TO OBTAIN THE PERMISSION ACCORDING TO CITY IN WHICH DWELLING IS SITUATED IN 2013 – 2023
| City | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| Gdansk | 3.73% | 3.25% | 2.74% | 2.84% | 2.72% | 2.41% | 2.67% | 1.71% | 2.03% | 1.83% | 1.78% |
| Gdynia | 1.52% | 1% | 1.09% | 1.03% | 0.81% | 0.81% | 0.65% | 0.47% | 0.54% | 0.56% | 0.33% |
| Gorzow Wielkopolski | 0.71% | 0.72% | 0.51% | 0.30% | 0.48% | 0.70% | 0.55% | 0.89% | 1.03% | 0.88% | 0.86% |
| Cracow | 8.86% | 12.30% | 12.60% | 14.97% | 15.24% | 13.29% | 13.06% | 12.07% | 10.19% | 9.51% | 10.04% |
| Lodz | 3.21% | 2.78% | 2.64% | 2.13% | 2.53% | 2.14% | 2.76% | 3.67% | 3.87% | 3.66% | 3.85% |
| Poznan | 2.27% | 3.04% | 3.94% | 2.65% | 2.70% | 2.26% | 2.25% | 2.66% | 2.66% | 3.17% | 2.91% |
| Szczecin | 2.40% | 3.50% | 1.86% | 1.48% | 1.82% | 1.32% | 1.20% | 0.98% | 0.79% | 0.90% | 0.72% |
| Swinoujscie | 1.07% | 1.25% | 0.93% | 0.90% | 1.04% | 0.85% | 0.81% | 0.94% | 0.59% | 0.61% | 0.41% |
| Warsaw | 29.29% | 25.63% | 26.80% | 27.02% | 25.16% | 25.29% | 21.33% | 20.57% | 21.84% | 17.79% | 18.17% |
| Wroclaw | 7.43% | 8.01% | 7.35% | 10.52% | 9.93% | 10.46% | 8.98% | 9.94% | 8.82% | 8.68% | 8.56% |
| Zakopane | 0.13% | 0.16% | 0.27% | 0.28% | 0.29% | 0.07% | 0.09% | 0.01% | 0.04% | 0.01% | 0.03% |
| other | 39.38% | 38.36% | 39.26% | 35.86% | 37.29% | 40.39% | 45.65% | 46.09% | 47.60% | 52.41% | 52.34% |
| TOTAL | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
source: self-study based on the report of Ministry of the Interior and Administration (MSWiA) on execution of the act on real estate acquisition by foreigners in 2013 – 2023
Increase in the number of residential properties bought by foreigners in Poland is influenced by several key factors. Foreign investors continue to find the Polish housing market appealing due to comparatively lower property prices than in other EU countries, especially in major cities. Increasing property values, especially in larger urban areas, offer attractive profit opportunities for foreign buyers. Moreover, citizens from politically or economically unstable countries view real estate purchases in Poland as a means of securing their assets. Poland has also become a popular destination for emigrants from Belarus and Ukraine, who, after achieving career stability, often decide to buy their own property. Polish regulations on the acquisition of real estate allow the purchase of property without major formalities for citizens of the European Union. Even for non-EU citizens, including Poland’s eastern neighbours, the process of obtaining permission to purchase real estate is simplified and feasible, particularly with a long-term stay in Poland. This trend is expected to lead to a continued rise in the number of foreign property buyers in the future.
Marta Polkowska
SARFiN System Data Administrator
Senior Maintenance and Development Specialist