Poles buy real estate abroad. 400 thousand PLN for a small apartment by the sea in Spain

For several months now, Poles have joined the group of the most active countries in the purchase of apartments and houses in Southern Europe. No wonder, because more and more compatriots belong to the wealthy group. According to the data collected by Forbes.pl in the tax chambers across the country in 2020, more than 38.5 thousand. millionaires. It is not uncommon for the wealthy to own multiple properties, purchased both for investment purposes and for their own needs. Currently, the most common buyers of apartments abroad are entrepreneurs, natural persons interested in investing in rental properties, families with children and compatriots who live permanently in other Western European countries.

Investing in foreign real estate is no longer unfeasible. Poles are looking for a safe haven due to the precarious situation outside our eastern border and galloping inflation, and looking at the prices of apartments on the Baltic Sea is something to think about. For example, for the price of a studio in Warsaw, which is almost 400,000. PLN, you can buy a small apartment by the sea in Spain.

Increased interest in foreign real estate after the start of the war in Ukraine

Although we could already notice the first signs of great interest in foreign real estate in December last year, and the situation at that time was caused by the Polish government and the increase in inflation, which led to capital being allocated to safe investments. According to data from Rellox – one of the largest sellers of foreign apartments and houses in the Central and Eastern Europe region, the real boom took place after the Russian invasion of Ukraine.

In the first month after the invasion, interest in offers rose by 81%, especially in countries that seem safe to us because of their location or neutrality. Locations in Switzerland achieved 210 percent. more popular, in Italy – by 168 percent. In the case of Spain, interest rates rose by 45%, but according to experts, it is this country that may register the most transactions from customers from Central and Eastern Europe. In Spain, there is currently a buying boom in the real estate market, not only thanks to Poland, but also investors from other countries.

The sunny south of Europe is the most popular

Never before has there been such great interest from Poland in real estate abroad. Especially many transactions with their participation are registered in Southern Europe in Spain, Portugal, France and Italy. They enjoy the greatest interest apartments by the sea in closed complexes, and under premium investments – luxury villas with swimming pools. The most interesting offers disappear almost immediately. Many apartments in Spain can be bought for a similar price as in Poland. The cheapest offers of apartments with two bedrooms and a living room – depending on the location, they start there in the range from 100 to 150 thousand. euros† Polish clients usually look for real estate offers depending on whether they are planning to buy a property for permanent residence, a second home for vacation or simply thinking of an investment that will allow them to make the most of their money. What counts most are attractive locations in coastal towns. There are excellent weather conditions in Spain almost all year round, for example on the Costa del Sol and Costa Blanca the number of sunny days per year is approximately 320.

Many rural real estate agencies have even moved their offices to sunny resorts and as they report, they make as many purchase transactions during a month as they normally would during a year. Also, seeing how many wealthy Poles wanted to make a purchase, the largest development companies in these countries launched Polish-language sales teams. Community law allows citizens of countries of the European Union to buy real estate in other Member States on the basis of equal treatment. There are also no restrictions on their purchase by Polish citizens in the United States. We can buy a house or apartment in the US without any complications. It is enough to show a Polish passport.

Property Prices in Spain

Interest in real estate abroad is also fueled by the rise in their prices in our market. Spain is currently the first choice on the list of countries where Poles buy apartments and houses. With the amount of PLN 120,000 Euro, you can for example buy an apartment with an area of ​​approx. 70 m² in an attractive town, only 250 m from the sea. The latest statistics from the Spanish Association of Notaries show that there was a record increase in real estate sales in 2021, by a whopping 38.1 percent. y / y, reaching the level of 676 thousand. 775 transactions, most of which, namely 507 thousand. were flats. At the same time, the number of approved mortgages increased by 35.7% to a total of almost 345,000. operation.

France, Austria, Malta, Italy, Bulgaria – property prices

It is also gaining popularity among Poles Portugal, Italy, France, Austria, USA, Dubai, Turkey, Greece, Bulgaria and Croatia
For example in France, the average price per square meter of real estate is 4.4 thousand. eurosIn turn, in Austrian ski resorts you will have to pay an average of 4.7 thousand, and in Malta about 5 thousand. euros.

In Italy we will pay less, where we will buy an attractive property for 2.2 thousand. euros per square meter and in Spain, where an average square meter of a flat costs almost 2.5 thousand. euros., Bulgaria appears to be the cheapest, with a price of around 600 euros per square meter. The latest trend is also the purchase of real estate in exotic regions with potential, such as Thailand, Egypt or Cape Verde.

Adam Białas – real estate market expert, director of BIALAS Consulting & Solutions, business journalist

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