Is it worth investing in luxury property?

The luxury property market in Poland is only just taking its first steps, but interest in this type of investment is noticeably growing from year to year. Is buying a luxury property profitable? How quickly will it pay for itself, and can you get rich from it? You will find answers to these and other questions in today's article.

Growing demand for premium property

By premium property we mean units priced at no less than a million PLN. Demand for this type of apartment is growing from year to year. The value of the luxury property market has risen in recent years by as much as 40%. This shows that Poles are able to spend more and more on housing. It turns out, however, that the supply of premium property is not keeping pace with demand. The market cannot keep up with Poles getting richer and still offers too few luxury apartments. Hence the great interest in them and continuing price rises. A record was set in 2018, when an apartment in the Złota 44 tower in Warsaw was sold for the staggering sum of 11 million PLN.

The number of wealthy Poles is growing

Data from tax offices shows that the number of wealthy Poles is rising from year to year. In 2016 there were over 20 thousand people whose annual income exceeded a million PLN. In addition, as many as 164 thousand earned more than 20 thousand PLN gross per month in the same year. In 2017, in turn, it was estimated that there were as many as 57 thousand people in Poland with assets exceeding a million dollars, and the number was growing. According to statistics, we are the nation in which the number of millionaires is currently rising fastest. In 2017 alone the number of the richest rose by 16 thousand people, that is, by almost 40%. It is no wonder, then, that demand for luxury property is going up. High-standard apartments are one of the most advantageous ways of investing capital.

A route to quick and reliable profit

By investing in premium property, you can count on an attractive profit, decidedly higher than from units of a lower standard. The greatest gains can be made by letting apartments of this kind. Moreover, investing in luxury property is safer than buying bonds or putting money in a bank deposit.

Location matters most

For an investment in a luxury apartment to pay off, its location must be taken into account. It is the first thing Poles consider when assessing a property's attractiveness. The best locations are therefore the centres of large cities, above all the capital, but also the largest cities in each region. Premium property in the most popular tourist resorts is also an excellent choice. By the sea these will be Kołobrzeg, Międzyzdroje or Sopot, and in the mountains Zakopane, Szklarska Poręba, Karpacz or Krynica-Zdrój.

Not only modern apartments

The term "premium property" usually refers to modern, high-standard apartments, but not exclusively. Investors increasingly look for flats "with soul" and choose units in historic tenement buildings. Their advantages are spaciousness, high ceilings, distinctive architecture and also an excellent location. Renovated tenement interiors are now very comfortable to live in, and their decor will delight even the most demanding aesthetes.

Investments in luxury property are on the rise. No wonder, as the number of wealthy Poles grows from year to year, and they want to buy flats and apartments of the highest standard. In today's article we take a closer look at premium property and present the advantages of such an investment. Check it out now!