Agnieszka Mikulska, Housing Market Expert at CBRE


Apartments remain one of the more stable ways to protect capital. On the one hand, they generate rental income; on the other, their value in Poland has clearly risen over time, aside from brief downturns. The growing supply and wide selection of apartments may encourage investment. Increased market activity is already visible. In the first quarter of this year, the supply in Warsaw increased by 1.9%, and sales by nearly 2.4%, according to data from CBRE and the analytics team at Tabelaofert.pl. After the interest rate cut in May, another sales surge was observed. When investing in apartments, it's essential to align your strategy with your preferences and, most importantly, your financial capacity.

Last month’s interest rate cut to 5.25%, combined with growing housing supply, favors purchases—including investment ones. In May this year, total sales across the seven major markets (Warsaw, Kraków, Wrocław, Tricity, Łódź, Poznań, and the cities of the Upper Silesian-Zagłębie Metropolis) rose by as much as 23% compared to the previous month, according to BIGDATA RynekPierwotny.pl. Although this growth is partly due to weaker April sales, it still confirms that buyers are returning to the market.

Apartments Are a Solid Investment

According to NBP data, by the end of 2024, the capitalization rate (the ratio of annual rental income to apartment price) for individual investments in rental apartments was 5.49% in Warsaw and 5.75% in the six largest cities. Historical data also confirms that apartments are effective in preserving capital value. Thus, they remain an attractive form of saving. However, it's important to note that significant borrowing can lead to a negative return on equity (ROE), which was the case in nearly all cities at the end of 2024. The recent interest rate cut should improve the situation somewhat, but each apartment investment should still be preceded by a thorough analysis.

Costs, Not Just Profits

The decision to invest in apartments should always be preceded by a reflection on personal preferences and capabilities. For example, high-end apartments retain value well, and demand in this segment isn’t strongly tied to economic conditions. However, their high price can be a barrier for most potential investors. And even for those with sufficient funds, an alternative could be purchasing several units in the popular segment to diversify investments. On the other hand, buying a unit in a large housing estate's popular segment means competing for tenants with many similar properties.

Individual investors in the housing market have many options, including apartments with rooms for rent, renovated units in historic buildings, properties in cities for short-term stays, or vacation homes. There are also opportunities such as repurposing apartments into small office spaces like legal offices. Each of these options has pros and cons, so the choice depends on personal preferences—and sometimes on the specific property available for purchase.

Beyond selecting the right property, it's crucial to consider future maintenance costs and potential rental management expenses, including costs incurred during tenant turnover periods. If you decide to exit the investment, selling the property will also involve financial burdens.