Luxury real estate in Europe gains prominence

Premium real estate continues to serve as a robust vehicle for capital protection and high returns. Europe is increasingly becoming a prime destination for affluent buyers, surpassing traditionally popular global locations.

Market analyses reveal that luxury homes and apartments in Poland and across Europe are appreciating at a significantly faster rate than standard housing. Despite fluctuating market conditions, high-end properties in Poland experience an annual value increase of at least 10%. Luxury housing prices start at PLN 40,000 per square meter, while in the most prestigious locations, rates can exceed PLN 100,000 per square meter.

Steady Growth and Profits

Premium real estate not only retains its value but also consistently appreciates. The pool of buyers comprises seasoned investors who recognize the resilience of luxury properties against economic fluctuations and market downturns. The demand for high-end real estate in Poland continues to rise, while the supply remains limited, pushing prices upward. Investors frequently achieve gains of several dozen percent, with rental yields reaching 9-10% annually.

"There is no more profitable option than the premium real estate market," says Katarzyna Goryszewska, Head of Walter Herz’s Luxury Residential Agency.

Compared to Western Europe, Poland’s luxury real estate prices are relatively moderate. The UK leads the European market with some of the highest property rates. In London, luxury real estate averages around €30,000 per square meter, similar to Monaco, New York, and Hong Kong. Amsterdam’s market is about half as expensive. High prices in London contribute to fewer transactions compared to more affordable cities like Paris and Madrid, where premium properties average €23,000 per square meter—comparable to Sydney.

Europe is increasingly attracting global investors at the expense of other premium real estate markets. In recent years, the continent has witnessed an influx of investors from North America and an increasing number of wealthy Asian buyers favoring European locations such as Spain, Portugal, and Italy.

Warsaw: The Hub of Poland’s Luxury Market

Poland’s premium real estate sector continues to expand, albeit at a moderated pace aligned with global trends. The luxury market, though relatively young, is valued at approximately PLN 3.5 billion. Warsaw alone accounts for 30% of Poland’s luxury real estate, with premium properties concentrated in major cities such as Gdańsk, Wrocław, Kraków, and Gdynia. Exclusive properties are also available in select resort towns.

Among Warsaw’s prominent developments is the Flare by Archicom, a 15-story luxury apartment building on Grzybowska Street, offering 76 apartments, including penthouses. Additionally, the company is constructing a high-end building at 7 Miedziana Street, featuring a cinema, fitness and SPA facilities, a club room, and a bar—part of the mixed-use Towarowa 22 complex.

Other notable projects include Serenus, a company affiliated with BBI Development, which is developing land near Ogrod Krasińskich garden and Plac Bankowy square. The exclusive Villa Bogoria, featuring 35 premium apartments, is also under construction on Długa Street, adjacent to the Royal Arsenal.

In Gdańsk, Euro Styl is launching a premium investment near Nowa Motława, with the Esencja apartment building in Dolne Miasto distinguished by its ornate facade.

Poland’s most prestigious real estate includes Warsaw’s Złota 44, Cosmopolitan towers, and Foksal Residence. Notable luxury properties in Kraków include Angel Wawel and Browar Lubicz, while Wrocław boasts the Ovo complex and Sky Tower. Sea Towers in Gdynia and Apartamenty przy Warzelni in Poznań also rank among Poland’s high-end residential developments.

A Diverse Investor Base

Premium real estate buyers in Poland include affluent individuals with Polish roots living abroad, business executives expanding into the country, and tourists who have developed a strong connection to Poland. Additionally, wealthy investors from Ukraine, Belarus, and Turkey are increasingly active in the market. Luxury rentals attract corporate managers, foreign investors, Polish entrepreneurs, and students from affluent backgrounds.

The premium market witnesses transactions involving substantial sums. Recently, a two-story, 400-square-meter apartment on Spichrzów Island in Gdańsk sold for PLN 24.8 million. Two years ago, a 700-square-meter apartment in Kraków’s Angel Wawel building sold for PLN 15 million. The Warsaw market also sees high-value deals, such as the sale of a 480-square-meter apartment on the 50th floor of Złota 44 for PLN 22.9 million, which was later resold at a profit. Another unit in the same tower was transacted for over PLN 20 million.

In Warsaw’s Żoliborz district, a luxurious residence recently sold for PLN 50 million, while a 340-square-meter apartment on Szara Street fetched PLN 20.4 million. Additionally, a high-end apartment on 18 Topiel Street was acquired for PLN 10.2 million.

With rising investor interest and a limited supply of luxury properties, Poland’s premium real estate market is poised for sustained growth.