The property market in Silesia
Text from 2019. Laws, rates and prices may have changed since then. Ask an agent
Silesia tops the voivodeship rankings for investment attractiveness. It is Poland's second-largest warehouse hub and its fifth-largest office market. The region is developing dynamically and every year attracts not only more and more investors from Poland and abroad, but also skilled workers, specialists from various sectors, tourists and students. All of this has a positive effect on the development of the housing market. What are the most characteristic features of the Silesian property market?
Diversity
Silesia is one of the largest housing markets in Poland. It is therefore no surprise that one of its main features is diversity.
The Upper Silesian agglomeration comprises as many as 19 interconnected cities, yet the local property markets differ considerably in the cost of renting and buying flats, as well as in their availability. Although the average price of 3,100 PLN per square metre is among the lowest in Poland, flat prices in Katowice are close to those in the Tri-City or Poznań. It is slightly cheaper in Gliwice, we can also expect lower prices in Ruda Śląska, Chorzów or Zabrze, and some of the lowest are to be found in Bytom.
Katowice – where flats are the most expensive
Katowice is the largest property trading market in the region. The capital of Upper Silesia is a centre of culture and business and one of the biggest service hubs. It is an attractive, modern city that keeps developing, drawing people in with high salaries and the ease of finding a job. All of this shapes the property market – flats here are the most expensive.
The people of Katowice look for high-standard flats with a good commute to the centre, close to green space. Prices depend mainly on location – naturally, we will pay the most for units in the very centre. In Śródmieście the price per square metre is 8,000 PLN, while in the southern districts it is 5,700 PLN.
In 2018, prices on the primary property market rose by as much as 25.8%. These worrying changes (with a median of 6,300 PLN per square metre, prices are approaching those in Gdańsk or Poznań) result, among other things, from growing demand combined with a lack of plots. The limited availability of building land in the northern part of the city is currently one of developers' biggest problems. Prices on the Katowice secondary market are also rising, but flats are still cheaper than in other Polish cities.
The predominance of secondary-market flats
Why does the secondary market dominate in Silesia? Not much has been built here over the past few decades. At the same time, with today's rising construction costs and the slow growth in flat prices (despite the significant rise in Katowice mentioned above), developers are not so keen to invest in residential units in this area – the market does not bring them the profits they expected.
The Silesian agglomeration is one of the areas where the fewest building permits are issued per 100,000 inhabitants (in 2017 it was a mere 3,000 flats). It is therefore no surprise that, despite the region's overall development, listings of secondary-market flats dominate here.
These are the units most popular with Silesia's residents
What kind of units do Silesians look for? Houses attract the least interest – both to buy and to rent. Buyers are most interested in 3-room flats, with 2-room flats in second place. Interestingly, only one person in ten is looking for a studio flat. Across Silesia, the most popular flats are those from the secondary market (the reasons for this trend have already been described), most of them built before 2000.
As for cost – most people look for flats priced at up to 3,000 PLN per square metre (70%), far fewer at up to 5,000 PLN per square metre, while the smallest group is made up of people who are ready to pay 5,000 PLN or more.
When it comes to renting, the most sought-after are 2-room flats, with 3-room flats in second place, while studio flats come in third – as with buying.
Flats outside Katowice (because of the much lower prices), but with a good commute to the centre of that city, attract greater interest.
Flats for rent – a good investment
Why is buying a property to let a good idea? Despite a significant outflow of population from this area, there are not nearly as many vacant flats as one might think, because Silesia used to be overcrowded. Today the number of people wanting flats is growing, while the rental market is still rather underdeveloped. The growth of tourism and business in this area is also increasing interest in short-term rentals.
Flat prices here are much lower than in other large Polish cities, yet rents are similar – thanks to the price-to-rent ratio, which favours the landlord, you can expect a shorter payback period. When investing in a flat, it is worth looking at the towns near Katowice that are well connected to it. An example? The journey from Chorzów takes only 20 minutes, and the rental yield on a year-round let is as much as 10%.
