Poland’s property market has been recovering, but yields are generally a little lower this year, no doubt as a result of the recession. 

In the upmarket central Warsaw district of Śródmieście, buying prices are generally over €3,000 per square metre.  Gross rental yields in Śródmieście vary between 4.9% and 6.0%, depending on size (smaller units yield more).

In other areas of Warsaw researched (Mokotów, Ursynów, Wilanów, and Żoliborz) there is a considerable range of prices, from about €2,400 per square metre to €2,800 per square metre.   Average yields here are slightly higher, ranging from 7.1% to 5.4%.

Apartments in the charming historic and student city of Krakow are generally more expensive than in Warsaw (especially smaller apartments, which cost an average of €3,345 per square metre).  Yields in Krakow range from 4.0% to 4.6% - hardly enough to justify an investment. 

“Residential units are probably overvalued to some degree,” says REAS, Poland’s leading research-oriented real estate agency.  We agree.  However the overvaluation is not serious, Poland’s economy is improving, and the country’s mood is upbeat.