KRAKOW REAL ESTATE MARKET 2014 P.II

Transcription

KRAKOW
REAL
ESTATE
MARKET
2014
P.II
KRAKOW 2015
Partners
Instytut Analiz Monitor Rynku Nieruchomości mrn.pl
www.mrn.pl
e-mail: zarzą[email protected]
KRN Media
www.krnmedia.pl
e-mail: [email protected]
Krakowski Serwis Mieszkaniowy dominium.pl
www.dominium.pl
Prices
Prices in the report are quoted in PLN or EUR,
depending on the transaction; often one of the
currencies is referred to as the basis for defining
the value. Average currency exchange rates are
published every day on the website of the National
Bank of Poland (www.nbp.pl)
Measures used in Poland
1 ar =100 m2 = 0.01 hectare (ha)
1 hectare = 10,000 m2 = 100 ars (ar)
Graphic Design: Advert Studio
Photo: Anna Kaczmarz (pages: II)
Rafał Lewandowski (pages: 7, 10, 13, 17, 23,
27, 28, 31, 33, 34)
Wiesław Majka (pages: cover, 1)
Translation: LINGUA LAB
Translation & Localization Services
01
PRIMARY REAL ESTATE MARKET
07
SECONDARY REAL ESTATE MARKET –
OFFER PRICES
10
THE SECONDARY REAL ESTATE MARKET –
TRANSACTION PRICES
13
RENTAL OF APARTMENTS AND HOUSES
17
TENEMENT HOUSES AND HISTORIC AREAS
20
SINGLE FAMILY HOUSING IN KRAKOW
23
SINGLE-FAMILY HOUSES
IN THE SUBURBAN AREA OF KRAKOW
28
LAND IN KRAKOW
31
LAND IN THE SUBURBAN AREA
PRIMARY
REAL ESTATE
MARKET
Results of housing construction
According to preliminary data of the
Statistical Office in Krakow, from
January to December 2014 in the capital
of Małopolska, 7,361 apartments were
completed, i.e. 4.5% more than in the
previous year and over 7.8% more than two
years ago. Starting from 2010, the number
of completed apartments has been steadily
growing. In total, in the last five years
in Krakow, more than 30,800 apartments
were completed, and in the last ten years,
a total of more than 63,850 apartments.
Therefore, the result for 2014 is higher
than the average for the past ten years
by almost 1,000 apartments. (Chart 1)
Since 2010, the index informing about
the number of apartments under
construction has been on a high level.
In 2014 investors started the construction
of 9,266 apartments, i.e. 7% more than
the year before. In the last five years,
the construction of more than 45,500
apartments began.
However, since 2010, the number
of apartments for which construction
permits were issued, has decreased.
In 2014, building permits were issued
for 5,591 apartments, i.e. over 25% less
than in the previous year.
In 2014, in Krakow, only two types
of investors put apartments to use.
Apartments for sale and rent dominated
(implemented by developers),
which accounted for 85% of the
total pool of completed apartments.
15% of apartments were completed by
individual investors, and no apartments
were completed within other forms
of housing construction (cooperatives,
company, municipal, social rental).
0
Distribution of investments
According to the portal Dominium.pl,
at the end of December 2014, most
– 41% of all Krakow investments, were
offered in Podgórze. A similar number
of investments was recorded in the
city centre (Śródmieście) (22%) and
Krowodrza (24%). As in previous years,
the smallest number of investments were
offered in Nowa Huta, approx. 13%.
In comparison to the previous year the
percentage of investments implemented
in Krowodrza decreased, whereas the
share of investments in the city centre and
Nowa Huta slightly increased. (Chart 2)
Distribution of apartments
At the end of the fourth quarter of 2014, the Dominium.pl database included 7,480
apartments offered by Krakow developers. Assuming that the rest of the market offer
included approx. 15% more apartments, the general pool of offered apartments may
be estimated at approx. 8,600.
According to Dominium.pl most apartments (in total almost 40% of the entire offer)
were offered in three districts: Podgórze (XIII), Prądnik Biały (IV) and Grzegórzki (II).
Many apartments were also on sale in Dębniki (VIII), Czyżyny (XIV), Prądnik Czerwony (III),
Bieżanów-Prokocim (XII), Podgórze Duchackie (XI) and the Old Town (I). In total, these
nine districts offered 83% of all the apartments, whereas the remaining districts offered
only 17%. The smallest offer of apartments was recorded in three districts of Nowa Huta:
Bieńczyce (XVI), Wzgórza Krzesławickie (XVII), Nowa Huta (XVIII) – a total of less than
1.5% of the offers. (Table 1)
III.1-1
Chart 1.
The number of
completed apartments
(put to use), apartments
for which building
permits have been
issued and apartments,
whose construction
started in Krakow
in 2009-2014
Source: Based on data of the
Statistical Office in Krakow
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2009
2010
2011
Apartments for which building
permits have been issued
2012
2013
Apartments under
construction
III.1-2
2014
Completed apartments
(put to use)
III.1-3
III.1-5
%
10
20
30
40
Chart 2.
Distribution
of offered housing
investments in Krakow
(December 2014)
50
60
70
Podgórze
41%
Krowodrza
24%
Śródmieście
22%
Nowa Huta 13%
80
Source: Dominium.pl
III.1-2
2012
2011
2013
2014
III.1-3
III.1-4
III.1-6
Chart 3.
50
60
70
80 Distribution
of the offered
apartments in Krakow
(December 2014)
Source: Dominium.pl
III.1-7
%
10
20
30
40
Podgórze
41%
Śródmieście
25%
Krowodrza
20%
50
Nowa
Huta 60
70
14%
80
III.1-4
III.1-5
%
10
20
30
40
50
60
70
80
Śródmieście
Chart 4.
Distribution
of investments
in the area
of Krakow according
to completion dates
(December 2014)
Krowodrza
Podgórze
Nowa Huta
Source: Dominium.pl
III.1-7
%
Śródmieście
Krowodrza
10
20
30
40
50
60
70
80
10
20
30
40
50
60
70
80
III.1-7
III.1-8
Chart 5.
%
Podgórze
Nowa Huta
Distribution
of apartments
in the area of
Krakow according
to completion dates
(December 2014)
III.1-8
Source: Dominium.pl
Completed
2015
2016
In Krakow, theIII.1-9
district of Podgórze was dominant with more than 40% of all offered
apartments. The smallest number of apartments were sold in Nowa Huta (just over 14%).
The city centre and Krowodrza were in the middle of the ranking, with nearly 25% and
20%, respectively. In comparison to the previous year, the shares of Podgórze decreased,
whereas the shares of all the other areas increased. (Chart 3)
III.1-9
Investment completion dates
At the end of December 2014, the housing investment offer was dominated by apartments
with the status of “completed” or the date of completion estimated at end of the year –
such investments accounted to approx. 62%. In 2015, nearly 25% of investments are to be
2
2 000
4 000
6 000
8 000
10 000
completed, PLN/m
and in the next
year – 14%. Most
of the completed
investments
were located
in the city centre, and the least in Krowodrza. In the previous year, completed investments
in the entire city accounted for than 70% of investments. (Chart 7)
Stare Miasto (I)
Zwierzyniec (VII)
Apartment completion dates
Krowodrza
(V)
2
In comparison
to the
situation
end of December
share
PLN/m
2 000 in the previous
4 000 year, at the
6 000
8 0002014, the 10
000
(II) in the offer of developers decreased. There were 32% of such
of completed Grzegórzki
apartments
apartments, whereas
Bronowice in
(VI)December 2013 – 45%. The offer was dominated by apartments
Staredates
Miastoin
(I)
with completion
Podgórze (XIII) 2015 (44%). 24% of apartments are to be completed in the
following year.Zwierzyniec
(Chart 8)(VII)
Dębniki (VIII)
Krowodrza (V)
Prądnik Biały (IV)
percentage
Grzegórzki (II) of completed
Prądnik Czerwony (III)
The highest
apartments (approx. 35%) was located in the city
centre and Podgórze, and the least (less than 15%) – in Nowa Huta, where the percentage
Bronowice (VI)
of apartmentsCzyżyny
to be (XIV)
completed in 2015 was the highest (71%). The city centre was the area
Podgórze (XIII)
Łagiewniki-Borek
Fałęckialready
(IX)
in which the pool
of apartments
completed and those to be completed in 2015
(VIII)
Podgórze
Duchackie
(XI)Compared to 2013, the share of completed apartments
and 2016 wasDębniki
at a similar
level.
PrądnikinBiały
(IV)
decreased mostly
In December 2014 there were over 30% of such
BieńczyceKrowodrza.
(XVI)
Prądnik
Czerwony
(III)
apartments, while
in the previous
Bieżanów-Prokocim
(XII) year almost 57%. (Chart 5)
Czyżyny (XIV)
Mistrzejowice (XV)
Łagiewniki-Borek Fałęcki (IX)
Swoszowice (X)
Podgórze Duchackie (XI)
Wzgórza Krzesławickie (XVII)
Bieńczyce (XVI)
Nowa Huta (XVIII)
Bieżanów-Prokocim (XII)
Mistrzejowice (XV)
Swoszowice (X)
Price structure
In December 2014, the Krakow real
III.1-10
estate offer was dominated by apartments
2
in the 5-7 thousand PLN/m price range.
%
5
10
Such apartments constituted 63%.
The second price range: 7-9 thousand
PLN/m2 represented approx. 25%
of the Krakow offer, and approx. 8%
III.1-10
– the cheapest apartments, were the
2 5
%
10
price did not exceed 5 thousand PLN/m
.
12 000
4 pokoje
Proportionally,
the smallest percentage
5 i więcej pokoi
(4%) were apartments for which buyers
had to pay more than 9 thousand PLN/m2.
As the asking price is usually not provided
in the case of more expensive locations,
it may
be assumed that the share of the
12 000
4 pokoje
III.1-11
most expensive apartments is actually
% 5 i więcej pokoi 5
slightly larger. (Chart 9)
do 30 m²
III.1-11
%
5
do 30 m²
81-90 m²
91-100 m²
101-120 m²
ponad 121 m²
0
81-90 m²
91-100 m²
101-120 m²
ponad 121 m²
The price level in particular districts
In December 2014, the highest average
prices were recorded in the Old Town
district (I). Average housing prices in that
district reached almost 11 thousand
PLN/m2, and in some luxury projects –
up to 15 thousand PLN/m2. The second
most expensive Krakow district was
Zwierzyniec (VII), where the average price
per m2 of an apartment was approx.
1 thousand PLN less than in the Old
Town. In Bronowice (VI), Grzegórzki (II) and
Krowodrza (V) districts the average prices
ranged from 7-8 thousand PLN/m2. At the
other extreme were two Nowa Huta
districts: Nowa Huta (XVIII) and Wzgórza
Krzesławickie (XVII), and Swoszowice (X).
The average prices in these locations did
not exceed 5 thousand PLN/m2. In four
other Nowa Huta and Podgórze districts:
Mistrzejowice (XV), Bieżanów-Prokocim (XII),
Bieńczyce (XVI), Podgórze Duchackie (XI),
the average prices were in the range
of 5-6 thousand PLN/m2.
Average prices in the range of 6-6.8 thousand PLN/m2 were recorded in the following
areas: Łagiewniki-Borek Fałęcki (IX), Czyżyny (XIV), Prądnik Czerwony (III), Prądnik Biały (IV),
Dębniki (VIII) and Podgórze (XIII).
The average price of 1 m2 of a new apartment, defined as the average price in the districts,
amounted to, in December 2014, 6,574 PLN and was 1.1% lower than in the previous year.
%
80 in different
10 prices20
30 districts
70 months
40changed50over the60
Although
the
in particular
period of 12
directions, as a result of a large influx of new projects and the sale of old offers, it may be
concluded that the average price in the city remained stable.
III.1-7
Distribution of apartments according to the number of rooms
The offer of apartments in December 2014 was dominated by 2- and 3-room apartments,
which in total accounted for almost 80% of the offer. The structure of apartments was
complemented by studio flats which accounted for over 13%, and 4-room apartments (6%).
Less than 1% of the offered units were apartments with more than 4 rooms.
Distribution of apartments according to floor area
The chart showing the distribution of offered apartments according to floor area clearly
indicates that the offer of the Krakow market is dominated by apartments in 410-50 m2
and 51-60 m2 range. (Chart 11) In total, apartments with such a floor area constitute half
of the total offer. Smaller apartments (31-40 m2) and larger dwellings (61-70 m2) have
a similar
III.1-9 share, and constitute approx. 15% of the offer. The share of other floor area ranges
is less important and does not exceed a few percent of the offer.
PLN/m2
2,000
Stare Miasto (I)
Zwierzyniec (VII)
Krowodrza (V)
Grzegórzki (II)
Bronowice (VI)
Podgórze (XIII)
Dębniki (VIII)
Czyżyny (XIV)
Bieńczyce (XVI)
Chart 6.
The average
offer price of new
apartments in the
districts of Krakow
(December 2014)
Source: Dominium.pl
Mistrzejowice (XV)
Swoszowice (X)
Nowa Huta (XVIII)
4,000
6,000
8,000
10,000
12,000
III.1-7
%
10
30
20
III.1-4
III.1-4
50
40
80
70
III.1-6
III.1-6
60
III.1-8
III.1-9
Completed
62%
Completed
32%
2015
24%
2015
44%
2016
14%
2016
24%
Up to 5 thousand PLN/m2
III.1-10
8%
Up to 5-7 thousand PLN/m 63%
Up to 7-9 thousand PLN/m2
25%
Over 9 thousand PLN/m2
4%
2
%
III.1-8
III.1-8
5
10
15
20
25
1 pokój
Chart 7.
PLN/m
2
Chart 8.
Investment completion
dates in Krakow
2 000
4 000
(December 2014)
6 000
Chart 9.
Apartment completion
dates in Krakow
8 000
10 000
(December 2014)
The offer price structure
of apartments in Krakow
4 pokoje
(December 2014)
12 000
5 i więcej
pokoi
Source:
Dominium.pl
Source: Dominium.pl
Source: Dominium.pl
Stare Miasto (I)
Zwierzyniec (VII)
Krowodrza (V)
III.1-11
Grzegórzki (II)
%
5
10
15
Bronowice (VI)
Podgórze (XIII)
do 30 m²
Dębniki (VIII)
District
31
Share (%)
Stare Miasto
(I)
III.1-10
Czyżyny (XIV)III.1-10
5.7
5
Grzegórzki
Łagiewniki-Borek
%%(II)Fałęcki5(IX)
10
10
15
15
20
20
25
25
30
30
35
35
61-7
45 11.850
50
45
40
40
71-80 m²
7.5
Bieńczyce (XVI)
pokój
11pokój
Bieżanów-Prokocim
(XII)
81-90 m²
12.3
pokoje
22pokoje
Mistrzejowice (XV)
Krowodrza (V)
3.8
pokoje
33pokoje
Swoszowice (X)
pokoje
44pokoje
Bronowice (VI)
5
i
więcej
pokoi
5 i więcej pokoi
Nowa
Huta (XVIII)(VII)
Zwierzyniec
91-100 m²
101-120 m²
ponad 121 m²
2.8
1.0
Dębniki (VIII)
9.2
Łagiewniki-Borek
Fałęcki (IX)
III.1-11
2.0
III.1-11
%%(X)
Swoszowice
55
10
10
15
15
20
20
25
25
1.9 3030
6.1
do30
30m²
m²
do
41-50m²
m²
14.9
41-50
Podgórze (XIII)
51-60m²
m²
51-60
Czyżyny (XIV)
61-70m²
m²
61-70
Mistrzejowice (XV)
Bieńczyce (XVI)
6.8
31-40m²
m²
31-40
71-80m²
m²
71-80
81-90m²
m²
81-90
91-100m²
m²
91-100
8.7
4.1
1.0
Wzgórza Krzesławickie
101-120(XVII)
m²
0.1
ponad121
121m²
m²
ponad
Nowa Huta (XVIII)
0.3
101-120 m²
Table 1.
Distribution
of the offered
apartments
in the administrative
districts of Krakow
(December 2014)
Source: Dominium.pl
0
60
0
Summary
The year 2014 was characterized by
a large influx of new housing offers and
at the same time a high level of sales.
By balancing supply and demand, there
were no significant changes in prices,
and the average price per square meter
of an apartment, based on the average
prices in particular districts, changed only
slightly. However, at the end of 2014,
there were more apartments left in the
developers’ offer than in the previous year,
70
which –80depending on the supply in the
80
70 first months
of 2015 – may affect the price
movements in the coming quarters.
The good economic performance was
shaped by stable prices, low interest rates,
and partially supported by subsidies under
the programme “Mieszkanie dla młodych”
(Apartment for the Young). During the year,
the investors’ offer included more and more
locations and offers that met the criteria
of the above government programme.
In 2014, Krakow recorded the highest number of apartments put into uses since the
beginning of the current decade. It is worth noting that only developers and individual
investors completed their apartments in that year. The number of apartments whose
construction has begun was also high. However, there was a significant drop in the
number of building permits issued, which may result in a reduction of supply in the following
quarters and years.
As in previous years, most investments and apartments were offered in the area
of Podgórze, and the least in Nowa Huta. There is a significant concentration of housing
offers in several districts. Over 80% of all offers are located in nine districts of Krakow.
In 2014, the percentage of completed apartments and investments dropped. Percentage
like, theIII.1-8
smallest number of completed apartments were in Nowa Huta, and the biggest
III.1-8 and Krowodrza.
in Podgórze
Approximately 80% of the offered apartments had two or three rooms and half of the units
were in the 40 to 60 m2 range.
At the end of December 2014, most of the Krakow apartments were in the price range
of 5-7 thousand PLN/m2, and almost 90% of all units cost between 5 and 9 thousand PLN/m2.
The most expensive districts in the city are the Old Town (I) and Zwierzyniec (VII), and at the
other extreme, there is Nowa Huta (XVIII) and Wzgórza Krzesławickie (XVII).
III.1-10
III.1-10
%
5
%
10
5
15
10
15
Chart 10.
8,000
8,000
10,000
10,000
20
20
25
30
25
30
35
35
40
45
40
45
50
50
1 room
Distribution
of apartments
according to the
number of rooms
12,000 (December 2014)
2 rooms
1 room
3 rooms
4 rooms
12,000 Source: Dominium.pl
2 rooms
3 rooms
5 and more
4 rooms
5 and more
III.1-11
%
III.1-11
5
%
5
10
10
15
20
15
20
25
30
25
30
Up to 30 m²
31-40 m²
Up to 30 m²
31-40 m²
41-50 m²
51-60
41-50m²
m²
61-70 m²
71-80 m²
Chart 11.
Distribution
of apartments
according
to floor area
(December 2014)
Source: Dominium.pl
81-90 m²
91-100
m²m²
81-90
101-120
m²m²
91-100
over
121 m²
101-120
m²
over 121 m²
71-80 m²
61-70 m²
51-60 m²
SECONDARY
REAL ESTATE
MARKET –
OFFER PRICES
The year 2014 in Krakow was a stable
period on the secondary real estate market
in Krakow – taking into account the average
offer prices, with a slight upward trend,
which slowed down towards the end
of the year. Thus, the disparity between
the average asking price from the first and
the last quarter of the period amounted
to only 177 PLN. In the first quarter
of 2014, in order to buy an apartment on
the secondary market one had to pay
an average of 6,787 PLN/m2, whereas
in the fourth quarter it was 6,964 PLN/m2.
This slight upward trend was a reflection
of the general situation on the real estate
market in Krakow, and at the same time
indicates a change as compared to previous
years which recorded a slight decline of the
housing prices on the secondary market.
(Chart 1) As a reminder, in 2013, the asking
price of apartments on the secondary
market fell by less than 3%, in 2012 it was
4%, in 2011 it dropped by 2.6%.
This situation was influenced by several
factors. Undoubtedly, one of the most
important was the improvement of the
economic situation on the local real estate
market. This is evidenced by the record
sale of residential units in the capital
of Małopolska in 2014.
An additional stimulus that encouraged
those who were planning to buy an
apartment to decide on taking a credit
and making the purchase, was probably
the fact that from 1st January 2014,
the own contribution required from all
borrowers amounted to 5%. It is not
surprising, therefore, that people who do
not have adequate savings, accelerated
their purchasing decisions in order to
complete the transaction before the
beginning of 2015 (from this point, the
required contribution is 10%). This situation
particularly concerned people planning to
buy an apartment on the secondary market.
A direct impact was the fact that this
particular group of buyers could not count
on covering their own contribution required
by the amendment to Recommendation S
under the programme “Mieszkanie dla
młodych”. It is worth recalling that the
government programme, in contrast to its
predecessor, “Rodzina na swoim”, does
not include apartments from the secondary
market. In 2014, persons planning to buy
an apartment on the secondary market may
have felt additional pressure.
0
As regards the “Mieszkanie dla młodych”
programme, it should be noted that the
Act on state aid in the purchase of a first
apartment by young people makes the
secondary real estate market beyond the
interests of people who have subordinated
their search for a dream apartment in
order to find a dwelling qualifying for to the
government funding. Therefore, in the case
of this group of customers (we should also
remember that buyers up to the age of 35
are the most numerous group of buyers
of apartments), the secondary market does
not present an attractive option.
this particular area of Krakow is governed by different rules than other areas of the city.
A significant part of the local offer on the secondary market are apartments located in the
city centre (within the area of Planty) or in the immediate vicinity. Hence, prices in this area,
due to the unusual nature of the investments themselves, as well as the prestige of the place,
differ significantly from the average prices in the city. Apart from the Old Town, the most
expensive districts of Krakow are Zwierzyniec and Krowodrza. The average asking prices on
the secondary market in 2014 were, respectively, 8,608 and 7,749 PLN/m2. Prices remained
high in the districts which are most popular among purchasers of apartments, namely
Bronowice (7,613 PLN/m2), Grzegórzki (7,567 PLN/m2) and Dębniki (6,732 PLN/m2).
Podgórze is also worth attention – as it is an area of Krakow which in recent years has
experienced rapid development. Completed investments, not just housing investments run
by developers, but also infrastructure and investments in commercial and service buildings,
have made this part of the city more and more attractive for people looking for housing.
Therefore, it is not surprising that as Podgórze is becoming more and more attractive, the
average prices of apartments located within its boundaries are growing. In 2014, the average
The year 2014 did not bring any surprises
asking price of apartments on the secondary market was 6,724 PLN/m2. For comparison,
in relation to the development of average
in the previous year it was 6,310 PLN/m2, which is about 414 PLN/m2 less. Districts in which
the average asking price remained above 6,000 PLN/m2 also included Prądnik Biały and
asking prices in particular districts of the city.
Prądnik Czerwony. The cost of 1 m2 on the secondary market in those parts of the city was,
Invariably, the most expensive area was the
Old Town district, in which the average price
respectively, 6,646 and 6,531 PLN/m2. Invariably, the cheapest areas were districts located
of apartments on offer was 9,167 PLN/m2.
in the eastern part of Krakow: Wzgórza Krzesławickie (5,300 PLN/m2), Prokocim-Bieżanów
III.2.1-1
However, it is worth remembering that
(5,557 PLN/m2), Bieńczyce (5,567 PLN/m2) and Mistrzejowice (5,721 PLN/m2). (Chart 2)
Chart 1.
The average
asking price
of apartments
on the secondary
market in each
quarter of 2014
Source: Data from KRN.pl
6,900
6,950
7,000
7,050
PLN/m2
6,700
6,750
6,950
7,000
7,050
Q3
III.2.1-2
Q4
PLN/m2 1,000
2,000
Bieńczyce (XVI)
Mistrzejowice (XV)
Swoszowice (X)
Czyżyny (XIV)
Podgórze (XIII)
6,900
Q2
The average asking
price of apartments
on the secondary
market in the districts
of Krakow.
6,850
Q1
Chart 2.
6,800
Dębniki (VIII)
Grzegórzki (II)
Bronowice (VI)
Krowodrza (V)
Zwierzyniec (VII)
Stare Miasto (I)
III.2.1-3
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Dębniki (VIII)
Krowodrza (V)
PLN/m2 1,000
2,000
4,000
3,000
6,000
5,000
7,000
8,000 Chart 3.
III.2.1-3
The average asking
Podgórze (XIII)
price of apartments
Grzegórzki (II)
on the secondary market Bieżanów-Prokocim (XII)
taking into account
Mistrzejowice (XV)
the year of construction
III.2.1-4
before1960
1961-1989
2
Source: Data from
KRN.pl
PLN/m
1 000
1990-2010
%
2
4
6
10
8
12
12.0%
11.5%
Dębniki (VIII)
1990-2010
6.6%
6.2%
6.0%
Podgórze (XIII)
5.8%
Grzegórzki (II)
5.6%
4.9%
Mistrzejowice (XV)
4.5%
Nowa Huta (XVIII)
4.0%
Zwierzyniec (VII)
III.2.1-5
Czyżyny
(XV)
3.6%
Chart 4.
3.0%
Bieńczyce (XVI)
The supply of apartments
on the secondary
market in particular
districts of Krakow (%)
3.0%
Bronowice (VI)
2.0%
Swoszowice (X)
1.8%
Wzgórza
2
PLN/m
1,000Krzesławickie
2,000(XVII) 3,000
0.7%
4,000
5,000
6,000
7,000
8,000
9,000
10,000
III.2.1-5
Housing prices on the secondary market in Krakow largely depended on the year
facility. In 2014, buildings built before 1960 were the most expensive.
Bieżanów-Prokocim
This is mainly (XII)
due to the fact that these are largely historic buildings located in the city
Bieńczyce
centre.(XVI)
Last year the average price of units in this segment was 6,935 PLN/m2. It should
Mistrzejowice
be noted,(XV)
however, that the analysis does not include the most expensive apartments,
Podgórze
Duchackie
whose
prices (XI)
exceeded the amount of 10,000 PLN/m2. Taking into account the year
of construction,
the most affordable housing in 2014, were apartments in buildings
Swoszowice
(X)
constructed
in the years 1961-1989. This results from the fact that these are largely units
Czyżyny
(XIV)
located in buildings
Łagiewniki-Borek
Fałęcki (IX)constructed according to the large panel technology, which is not very
popular
among
Prądnik Czerwony (III) buyers. Moreover, often these are units located in large blocks of flats,
outside of the centre of Krakow. The average price of apartments in this segment in 2014
amounted to 6,145 PLN/m2. (Chart 3)
Wzgórza
Krzesławickie of the
(XVII)
of construction
Podgórze (XIII)
Dębniki (VIII)
Supply of apartments
In 2014, the largest number of apartments for sale on the secondary market was recorded
Bronowice (VI)
in the following districts: Old Town (12%), Dębniki (11.5%) and Prądnik Biały (10.8%).
Krowodrza (V)
These are areas in which the supply of housing on the secondary market has been
Zwierzyniec (VII)
the largest for several years. These areas of the city were also leaders in terms of supply
Stare Miasto (I)
in both 2013 and 2012.
Grzegórzki (II)
At the other extreme were: Wzgórza Krzesławickie (0.7%), Łagiewniki-Borek Fałęcki (1.8%)
and Swoszowice (2%). The low supply of apartments on the secondary market in those
parts of Krakow results from the fact that the said areas are characterized by a low level
of multifamily housing – they are largely dominated by single-family housing. (Chart 4)
2 rooms
39%
3 rooms
32%
1 room
15.5%
4 rooms and more
13.5%
Chart 5.
The supply
of apartments
in Krakow according
to the number of rooms
By far the largest part of the offer on the secondary market in the capital of Małopolska
are 2-room apartments. In 2014, apartments offered in this group accounted for 39%
of the
III.2.1-4total offer. Second were 3-room apartments (32%). The smallest choice was offered
to persons planning to buy a studio flat or a 4-room apartment or bigger. In 2014, such
apartments accounted for, respectively, 13.5 and 15.5% of the total offer on the secondary
market in Krakow. (Chart 5)
%
Stare Miasto (I)
Dębniki (VIII)
2
4
6
8
10
12
14
12.0%
11.5%
5 000
Bronowice (VI)
Swoszowice (X)
8.0%
Krowodrza (V)
III.2.1-2
4 000
Bieńczyce (XVI)
1961-1989
10.8%
3 000
Zwierzyniec (VII)
Czyżyny (XV)
14
przed 1960
Stare Miasto (I)
Nowa Huta (XVIII)
2 000
0
2.0
1.8%
0.7%
THE SECONDARY
REAL ESTATE
MARKET –
TRANSACTION
PRICES
Most apartments in the Krakow secondary market are sold in the largest cadastral unit
– Podgórze. For many years, nearly half of all the apartments completed by developers
have been built in this old district, which in time supply the offer of the secondary market,
increasing the volume of transactions in this market segment. The smallest number
of apartments is sold in the following areas: the city centre – because of the high prices
– and Nowa Huta, with the lowest number of constructed apartments. The bad reputation
of Nowa Huta still discourages potential buyers from buying an apartment in this part of the
city, despite a significant number of housing built in the 1950s and 60s. (Chart 1)
After a very good 2013, when almost as many apartments were sold as during the
exceptionally good performance in the years 2010-2011, in 2014 the number of apartments
sold in the secondary real estate market declined significantly: by 8% as compared to
the previous year. This is a result of competition from the primary market, which last year
supplied the housing market with a significant number of new investments and became
highly competitive for the secondary market in terms of prices. The difference between the
average selling price of a new and second-hand apartment was an average of 500 PLN/m2,
which meant that by adding approx. 8% of the purchase price, as compared to apartments
on the secondary market, buyers could afford a new apartment with similar surface area
and location.
III.2.2-1
III.2.2-2
1,200
9,000
8,000
1,000
7,000
6,000
Chart 1.
800
5,000
The volume of transactions
4,000
on the secondary market
3,000
600
.2.2-2
Source: Instytut Analiz Monitor
2,000
Rynku Nieruchomości
– mrn.pl
1,000
* numbers estimated
on the
400
2008
2009
2010
2011
2012
2013
2014*
basis of incompletePLN
data
2008
Podgórze
Krowodrza
Nowa Huta
2009
2010
Śródmieście
9,000
8,000
7,000
6,000
Chart 2.
5,000
III.2.2-4
The average
price per
1 m2 of an apartment
on the secondary market
4,000
III.2.2-33,000
2,000
1,000
PLN
m2
40
2008
2005
45
2009
Śródmieście
2006
2010
Krowodrza
50
2011
2012
Podgórze
55
2013
2014*
Nowa Huta
Rynku Nieruchomości – mrn.pl
million PLN
* numbers estimated
on the
600
700
basis of incomplete data
2010
2011
2007
2012
2008
2013
The decline in the number of apartments sold on the secondary market was also the result
of the state policy of subsidizing the young members of the society with the purchase
2009
of new apartments – under the government programme “Mieszkanie dla młodych” (MdM)
2010
III.2.2-4
– at least 10% of the price in the case of cheap construction, which covered the difference
2011 in value between new and old apartments, favouring the former.
2014*
2012
2013 The assessment of the attractiveness of particular areas of Krakow is reflected in the
600 obtained for
millionaverage
PLN
800 in the former900
700residential units
prices
four districts. 1,000
The greatest 1,100
interest,
2014*
and consequently – the highest prices, are recorded in the city centre and Krowodrza.
Lower prices are achieved in Podgórze, and, traditionally, the cheapest is Nowa Huta. (Chart 2)
2010
2011In
2014 there was a rebound of transaction prices. Prices in all the districts increased
to 2013. However, the scale of increase was small, barely noticeable.
2012as compared
2013
The
2014*
year 2014 was the third, in recent years, when the average price of the purchased units,
despite the growth, remained below the limit of 300 thousand PLN for the average unit.
The average unit price per 1 m2 of the total number of sold apartments in the secondary
market, in 2014, increased by approx. 2% as compared to the previous year, but still below
6 thousand PLN/m2. A slight growth was recorded in all areas of the city, but in a different
dimensions. Prices in downtown areas and Krowodrza increased, while in Podgórze and
Nowa Huta the increase in average prices was barely noticeable.
In total, with respect to the entire city, the average size of apartments purchased on the
secondary market, in 2014, was as in the previous year: 49 m2. This reflects the high
purchasing power of buyers, while maintaining low prices.
As in previous years, mostly small apartments were traded on the secondary market. Larger
units are rarely traded on the market. In 2014, transactions of apartments with a floor area
of 65 m2 accounted for 14% of all transactions and the sale of apartments of over 100 m2
was slightly more than 2% of the total market.
11
800
This situation has lasted for a long time and will be difficult to change, as, currently, mainly
small apartments are being built, which in time will enter the secondary market, causing the
continuation of current trends. (Chart 3)
The decline in the number of transactions on the secondary market in 2014 resulted in smaller
turnover, which fell to its lowest level in 8 years. The beneficiary of the increased demand for
housing in Krakow was the primary market, which in 2014 sold more than two times more
apartments than the secondary market. Never before in the history of the real estate market
III.2.2-1
in Krakow, this relationship was so unfavourable for the secondary market. (Chart 4)
Summary
The highest
1 200 ever domestic demand for housing was recorded, however, in Krakow it focused
on the primary market. The secondary market recorded the lowest turnover in 8 years.
1 000
All the districts sold mainly small apartments, wealthier customers preferred the primary
market.
800
The government programme “Mieszkanie dla młodych” with subsidies for new housing and
increased600
competition on the development market resulted in poor sales in the secondary
market. These factors will continue to drive the market in 2015. Despite the poor sales,
400 to 2013, there was a slight increase in the prices of second-hand apartments:
as compared
2008expensive
2009
2010 and barely
2011 noticeable
2012in the cheaper
2013 parts 2014*
more visible in more
neighbourhoods
of the city.
III.2.2-2
In 2015, the secondary real estate market in Krakow should be stable as regards prices.
Barriers to the growth of prices are too strong to result in a visible appreciation of the
current price levels.
III.2.2-3
9,000
8,000
m2
7,000
40
6,000
45
50
55
5,000
2011
2012
2013
2014*
Chart 3.
4,000
2005
3,000
2006
2,000
2007
1,000
2008 PLN
The average floor
area of an apartment
on the secondary
market in Krakow
2009
2012
* numbers estimated on the
2008
2009
2010
2011
2012
2013
2014*
2010
2011
2013
2014*
III.2.2-4
50
55
million PLN
Chart 4.
Trading
on the secondary
real estate market
* numbers estimated on the
2010
2011
2012
2013
2014*
600
700
800
900
1,000
1,100
II
RENTAL OF
APARTMENTS
AND HOUSES
For years the housing rental market in
Krakow has been characterized by stable
prices. Slight fluctuations occur during the
holiday season, when demand from potential
tenants (in Krakow this group is mainly
composed of students) is limited. After
excluding seasonal factors, it turns out that
the rates for renting an apartment in Krakow
in 2014 – as in previous years – remained
stable. This confirms the fact that the lease
in the capital of Małopolska is stable and
remains less susceptible to changes in the
market. Significantly, in 2014, there have
been no major differences as compared to
previous years. The cost of renting the most
popular 2-room apartment was an average
of 1,420 PLN. For comparison, in 2013
it was 1,466 PLN. The tenants of studio
flats in 2014 had to take into account a cost
of 1,069 PLN. For obvious reasons, the most
expensive apartments were 3- and 4-room
apartments. These are units with a larger
floor area, and in the case of the latter group
– often of a higher standard, located in the
central parts of the city, which are considered
the most attractive. The cost of renting
such an apartment in 2014 in Krakow, was,
respectively, 1,678 and 2,201 PLN. (Chart 1)
The stability of rental prices of apartments
in Krakow is confirmed by the analysis
of the average rates in each quarter of 2014,
taking into account the number of rooms.
A noticeable decrease in prices was recorded
only in the third quarter of the year, as regards
all apartments included in the analysis.
This results from the fact that the third quarter
of the year is the holiday season, a time
when the largest group of tenants, namely
students, is out of town. During this period,
landlords are willing to lower rental rates,
to find tenants for that period. The prospect
of reduced revenues from the lease is in fact
more favourable to them than the option
that for three months the apartment is
non-rented. The tendency to reduce prices
also results from the fact that in addition
to losses caused by the fact that tenants
do not pay the so-called cancellation fee,
the owners are aware of the fixed costs for
the said period, which include, among other
things, administrative fees. After a period
of lower demand for apartments for rent
in the summer season, in the fourth quarter
of 2014, the situation on the rental market
returned to normal, and prices reached the
pre-holiday period. (Chart 2)
13
An important criterion determining the level
of average prices for renting apartments
in Krakow is location. As it turns out,
the average rental rates in different
administrative areas of Krakow differ by
as much as a few hundred PLN. The most
expensive apartments are located in the
central parts of the city. These include:
the Old Town, Zwierzyniec and Grzegórzki.
In the former, the average price for the
rental of an apartment in the reported period
amounted to PLN 1,721, which means
that it was about 54 PLN higher than in the
previous year. In Zwierzyniec, a district that
came second in the ranking, tenants paid
an average of 1,645 PLN. In Grzegórzki the
price amounted to PLN 1,587.
The most expensive districts, taking into account the average rental price, include
Bronowice (1,505 PLN), Krowodrza (1,502 PLN) and Dębniki (1,425 PLN). It is worth noting
that relatively high rates for rental are in areas popular among students. This group includes
Dębniki, where a large number of faculties of the Jagiellonian University are located
or Bronowice. (Chart 3)
The analysis of the supply of apartments for rent indicates that in 2014 the largest number
of units appeared in the district of Prądnik Biały. Apartments for lease located in this district
accounted for over 13% of the total offer in 2014. In second place, in terms of supply,
was Krowodrza (12%), and the third – Dębniki (11.8%). A good result was also recorded
in such administrative parts of the city as Prądnik Czerwony (9%) and the Old Town (8.8%).
At the opposite extreme, with the lowest number of units for rent in 2014, were areas
farthest from the centre of the city – Wzgórza Krzesławickie, Swoszowice and ŁagiewnikiBorek Fałęcki. It is worth noting that these are areas with a small number of multi-family
housing – they are dominated by single-family houses. (Chart 4)
III.3-1
PLN/month
Chart 1.
1 room
The average
rental prices
in 2014
2 rooms
4 rooms
500
1,000
1,500
2,500
2,000
3 rooms
2,500
1,500
2,000
2,500
Chart 2.
Changes
in average rental
prices, taking into
account the number
of rooms in each
quarter of 2014
2,000
1,500
1,000
500
PLN
Q1
Q2
4 rooms
3 rooms
Q3
2 rooms
Q4
1 room
III.3-3
PLN/month
Stare Miasto (I)
Zwierzyniec (VII)
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Prą
2 500
2 500
2 000
PLN/month
1 500
200
400
800
600
1,000
1,200
1,400
1,600
1,800
%
2
4
1 000
Stare Miasto (I)
500
Zwierzyniec (VII)
Krowodrza (V)
Grzegórzki (II)
PLN
Dębniki (VIII)
I kwartał
Bronowice (VI)
II kwartał
III kwartał
IV kwartał
Krowodrza (V)
Stare Miasto (I)
Dębniki (VIII)
Grzegórzki (II)
Podgórze (XIII)
Podgórze (XIII)
Bronowice (VI)
Czyżyny (XIV)
Mistrzejowice (XV)
Nowa Huta (XVIII)
Swoszowice (X)
Czyżyny (XIV)
Zwierzyniec (VII)
Chart 3.
Bieńczyce (XVI)
The average rental
prices for apartments
divided into districts
Swoszowice (X)
Bieńczyce (XVI)
Nowa Huta (XVIII)
Mistrzejowice (XV)
III.3-4
%
2
4
6
8
10
12
14
16
III.3-5
III.3-6
Krowodrza (V)
Dębniki (VIII)
PLN/month
500
Stare Miasto (I)
Grzegórzki (II)
Podgórze (XIII)
Krakow
Bronowice (VI)
Wieliczka County
Krakow County
Mistrzejowice (XV)
Nowa Huta (XVIII)
Czyżyny (XIV)
Zwierzyniec (VII)
Chart 4.
Bieńczyce (XVI)
The supply
of apartments
for rent in particular
districts in 2014
Swoszowice (X)
III.3-6
15
1,00
1,200
Bronowice (VI)
Czyżyny (XIV)
Swoszowice (X)
Bieńczyce (XVI)
1,400
1,600
1,800
Nowa Huta (XVIII)
Mistrzejowice (XV)
Mistrzejowice (XV)
As in previous years, the largest group of apartments offered for rent in Krakow were
2-room apartments. The analysis of the structure of supply indicates that in 2014 such units Nowa Huta (XVIII)
constitutedIII.3-4
almost half of the offer – 48%. In second place, but with a significantly poorer
Czyżyny (XIV)
result (26%), were studio flats. There were also fewer 3-room apartments (23%) in the
Zwierzyniec (VII)
Krakow offer. Persons who wanted to rent a 4-room apartment had the greatest difficulties. Bieńczyce (XVI)
Apartments in this segment accounted for only 2% of all apartments offered for rent in
2014. Apartments with more than 4 rooms were not included in the analysis of the structure
Swoszowice (X)
%
8
2
14
4
12
6
16
10
of supply, as their share in the total number of ads was only 1%. (Chart 5)
The year 2014 was also a stable period for those renting homes in Krakow, as well as in
the county of Krakow and Wieliczka. After the cuts of rental rates of this type of property
Krowodrza (V)
reported in previous years, in 2014, we witnessed a stabilization of prices, and in some
Dębniki (VIII)
cases – their slight increase. The average price for renting a house in Krakow in the said
period was approx. 3,564 PLN, i.e. only 40 PLN more than in 2013. Small changes in the
Stare Miastoaverage
(I)
rental rates (year on year) were also reported in the case of houses located outside
– in the county of Wieliczka and Krakow. In the first case, the average rent was
Grzegórzki of Krakow
(II)
2,420 PLN,
i.e. 3.5% more than in the previous year. Whereas tenants renting houses in
Podgórze (XIII)
III.3-5
the county of Krakow, in 2014, had to take into the account a cost of approx. 2,398 PLN.
Bronowice (VI)
This is an increase as compared to 2013, in which this amount was 2,349 PLN. (Chart 6)
Mistrzejowice (XV)
PL
Nowa Huta (XVIII)
Czyżyny (XIV)
Zwierzyniec (VII)
Bieńczyce (XVI)
Chart 5.
Swoszowice (X)
The supply of
apartments
for rent,
taking into account
the number
of rooms in 2014
2 rooms
48%
1 room
26%
3 rooms
23%
4 rooms
2%
other
1%
III.3-6
PLN/month
500
Chart 6.
The rates for renting
a house in the county
of Krakow and
Wieliczka in 2014
Krakow
Krakow County
Wieliczka County
1,000
1,500
2,000
2,500
3,000
3,500
4,000
TENEMENT
HOUSES
AND HISTORIC
AREAS
The pre-war and historic centre of Krakow
is built up with tenement houses – multistorey residential buildings which dominated
the cities of the Middle Ages to the midtwentieth century.
Urban complexes of tenement houses
include the oldest part of the city centre,
Krowodrza and Podgórze. These are
considered the best locations in Krakow,
generating the highest revenues from
rents and services (trade, tourism and
catering), and their unique form is a source
of prestige for the owners of such
buildings. Therefore, tenement houses have
always been a separate segment of the
investment property market, with its own
dynamics, supply and demand. The market
of tenement houses is strongly correlated
with the housing market (especially
apartments), as well as the commercial
space market and the hotel and tourism
market, which most often operate in
these buildings.
Turnover
Every year, transactions concerning
tenement houses in all three pre-war
Krakow districts: the city centre,
Krowodrza and Podgórze are recorded.
In 2014, there were 33 sale
transactions of entire tenement
houses and 128 transactions of shares.
After a period of decline in the number
of transactions taking place since the peak
in 2006-2009, the number of purchasesale contracts grew rapidly in the period
2010-2013. In the previous year, the volume
of transactions of whole tenement houses
rose again, reflecting the continuing very
good economic performance of the market.
(Chart 1)
The year 2013 was a record year in terms
of turnover – such results were have not
been recorded on the market since 2009,
and 2014 was very similar. Investors spent
up to 200 million PLN on purchases,
including the purchase of whole buildings
– over 130 million PLN.
The year 2014 was a continuation of the
growing interest in investing in historic
Krakow real estate, sustained by the good
economic performance in the apartments
market. The specific feature of this type
of market segment is flexible, variable
demand adapted to the economic situation,
as compared to the relatively rigid supply
of sale offers of historic buildings.
17
III.4-1
Similarly to the residential, commercial and
hotel market, also the market of tenement
houses has displayed investor optimism
2003
since mid-2013, as reflected by public
auctions of municipal tenements in which
2004
up to 20 bidders have participated since
2005
the holiday season of 2013.
0
2006
Prices
The years 2003-2007 witnessed a rapid2007
increase in the prices of tenement houses
2008
due to the boom in the real estate market
2009
at that time. In 2008, the adjustment began
and prices started to fall until 2012. The last
2010
two years have been a period of stability,
comparable to the level from 2010 and 2011
2011 (6,800-7,100 PLN/m2 of usable floor
2012
area of a tenement house in the city centre).
Taking into account the simultaneous 2013
50
100
150
200
250
increase in the number of transactions, it may mean that the market has already reached
its lowest price level in 2012, and since then the downward trend has been replaced by
an upward trend. Current prices of tenement houses are still lower by 30% (nominal prices),
and after taking into account the inflation, by almost 40% (real prices), from record prices in 2007.
The highest price paid so far, in 2014, for a tenement house was 15.5 million PLN,
with an average market price of such properties of approx. 4.4 million PLN. For comparison,
in 2013 the most expensive house reached a price of 25.3 million PLN, and the average
market price of the property amounted to PLN 5.3 million.
An inherent feature of the market is a considerable variation of unit prices of tenement
houses (2.3 thousand – 12 thousand PLN/m2 of usable floor area) resulting from significant
disparities in the attractiveness of the location (Węgierska Street in Podgórze – Main
Market Square), in their technical condition (from luxury townhouses – to vacant buildings
III.4-1
requiring an overhaul) and the size of the income from the lease (from retail space rented
for 300-400 PLN/m2 – to apartments with tenants paying adjustable rent 10-14 PLN/m2).
0 investors, the50expected rate of return
100
150 for calculating200
For most
is the basis
the cost-effective250
price of purchasing the building.
2003
2014*
III.4-1
2004
2005
0
50
100
150
200
250
2006
2007
2003
2008
2004
III.4-3
2009
2005
2010
2006
Chart 1.
10
Number of transactions9
on the market
8
of tenement houses
7
Source: Instytut Analiz
Monitor Rynku
Nieruchomości mrn.pl
* estimated on the basis
of incomplete data
6
2011
2007
2012
2008
2013
2009
5
2014*
2010
4
2011
3
Number of transactions
of whole tenement
2
houses
1
thousand
of interests
PLN
in tenement houses
2012
2013
2014*
2003 2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014*
III.4-3
10
9
8
Chart 2.
The average
price of 1 m2
of usable floor area
in the city centre
Source: Instytut
Analiz Monitor Rynku
of incomplete data
7 III.4-3
6
5
4
10
3
9
2
8
1
7
thousand
6
PLN
5
4
3
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014*
III.4-2
million PLN
50
100
150
200
250
300
350
400
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014*
Chart 3.
Market turnover
in tenements and
interests in tenements
Source: Instytut
Analiz Monitor Rynku
of incomplete data
Market turnover of whole
tenement houses
(million PLN)
Market turnover of interests
in tenement houses
(million PLN)
Demand
Foreign demand increased during the bull market up to 2007. For example, in Kazimierz,
the share of foreign investors (mainly from the EU and Israel) in the market turnover
increased from 13% in 2003 to 75% in 2008. Since 2009, their interest in tenement houses
started to decline. Currently, the share of foreign capital does not exceed 40%.
The structure of demand in 2014 still indicates a majority of investors in the housing and
apartment sector, and a limited, but steady, demand from the hotel and tourism market
(purchases for hotels, hostels, guest houses, catering facilities). The demand pressure has
also been growing in the case of investors looking for townhouses for distinctive offices
and corporate headquarters. The investment attractiveness of townhouses is also reflected
in new investments in the city centre – the so-called infills (supplement buildings between
existing houses).
Prognosis
Since mid-2013, investors encouraged by low prices and cheaper loans are slowly returning
to the market. In addition, from the beginning of 2014, the market of tenement houses has
been affected by an upturn in the market of luxury apartments. Therefore, market forecasts
for tenement houses in Krakow in the short and medium term are optimistic. In the near
future, new domestic and foreign capital will continue to flow, attracted by the good “brand”
of Krakow as the tourist capital of Poland, and more recently as an international centre
of business and science. Developers of the housing sector and the tourism industry, thanks
to whom the historic properties have regained their former glory, are the future of the market.
19
SINGLE FAMILY
HOUSING
IN KRAKOW
The primary market
In comparison to previous years, the
analysis of the primary market indicates
that a decline in turnover is still visible in this
segment of the market. The high activity
of developers in the real estate market limits
the development of projects in the segment
of single-family housing. The market
situation is deteriorating from year to year.
Houses – because of the costs – are sold
directly by developers.
Since 2012 there has been a clear decline
in trading volumes and the number
of transactions. In 2012, 90 transactions
were recorded, which was a significant
and surprising growth in comparison to
2011, which recorded 69 transactions.
By contrast, in 2013 the number
of transactions fell to 75 and it seems
65
170
60
165
55
160
that the decline will continue in 2014.
The estimated number of transactions
in 2014 was 51, with a decrease in turnover
from over 44 million PLN to 35 million PLN.
This means a decrease in turnover by 20%.
After a significant increase in turnover in
2012, we are dealing with a continuing
downward trend. (Chart 1)
There is a strong variation in the activity
of developers, as divided into the old
districts of Krakow. In the last 3 years, there
was 1 real estate development in the city
centre, with minimum activity in Nowa Huta
– although in the last two years there have
been a few transactions recorded. As usual,
developers have showed the highest activity
in Podgórze, where the volume of sales was
more than two times higher than in other
districts in total.
65
170
800
60
165
700
6,000
5,000
55
160
600
50
155
500
45
150
400
40
145
300
4,000
50
155
45
150
40
145
35
140
3,000
2,000
35
140
200
30
135
100
million
PLN
m2
thousand
PLN
Chart 1.
Turnover and the average
size of a single-family
house in Krakow
300
Rynku Nieruchomości mrn.pl
250
200
of incomplete data
The average transaction
prices and the average price
for 1 m2 of usable floor area
140
120
100
150
80
100
60
of incomplete data
140
120
100
80
60
Average
transation price
(thousand PLN)
Average price
of 1 m2 usable
floor area
2013
2014*
2012
2011
2009
PLN/m2
2010
2013
2014*
2012
2011
2009
Chart 2.
Turnover
(million PLN)
Average usable
floor area (m2)
2010
2014*
2013
m2
2012
million
PLN
2011
135
2010
30
2009
2014*
2013
2012
2011
2010
2009
1,000
200
1,000
300
140
100
250
120
thousand
PLN
Chart 3.
PLN/m2
2013
100
40 mrn.pl
Rynku Nieruchomości
50
thousand
PLN
100
80
of houses in Krakow
60
2014*
2012
2011
2009
150
2010
200
20
of incomplete data
2004
2005
2006
Podgórze
2007
2008
Krowodrza
2009
2010
2011
Nowa Huta
2012
2013
million
PLN
2014*
2004
2005
2006
2007
Śródmieście
1,600
140
1,400
120
1,200
%
100
1,000
5
10
15
<3
800
80
Chart 4.
600
60
Total turnover 4-5
of houses in Krakow
5-6
400
40
200
20
thousand
million
PLN
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014*
PLN
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014*
Podgórze
Krowodrza
Śródmieście
3-4
11%
Rynku Nieruchomości6-7
mrn.pl
7%
7-8
4%
of incomplete data
8-9
9-10
Nowa Huta
5%
1%
10-11 0%
%
5
10
15
20
25
30
35
The average transaction prices in 2013 fell by 14%, which could be due to the sale
of buildings in stages less advanced than the developer stage and it seems that in 2014
<3
35%
the average
prices will rise, and the expected decline in the period of two years will amount
2
18%
3-4
to 6%. The average price of 1 m of usable floor area within 2 years will fall by 10%, while
increasing
the usable floor area of houses by 10%.
4-5
17% The average area of a single-family
2
house
5-6sold in the development market
11% in 2014 amounted to 161 m and has not changed
since6-7
2013. Prices ranged from 300 thousand to 2 million PLN for the property. (Chart 2)
7%
7-8
4%
The secondary market
8-9
5%
The year 2014 did not record a recovery on the secondary market of houses in Krakow.
9-10
1% number of transactions remained at a level similar to 2013. Every year in
The estimated
10-11
0%
Krakow, little over two hundred houses are sold, which is less than 50% of the transactions
made
in the 1%
period of growth (2005-2007). (Chart 3)
11-12
>12
2008
40
11-12
1%
>12 for a house
1%
The average price
on the
secondarythousand
market continues to decline.
PLN/m2 (2008) it was approx.
In the best period
1 million PLN. Currently, on average, a real
estate built up with a single family house on
the secondary market costs slightly more
than 700 thousand PLN. (Chart 5)
The continuing crisis is best illustrated
by Chart 6. In 2014, for the first time,
the highest number of transactions
of houses with prices below
3 thousand PLN/m2 was recorded.
1%
2014 was yet another year in which turnover decreased, and the fourth in a row in which
thousand
PLN/m2 failed to exceed 200 million PLN. As in previous years, by far the highest turnover
turnover
was recorded in Krowodrza and Podgórze. Most transactions are concluded in Podgórze,
and the most expensive homes are sold in Krowodrza. (Chart 4)
21
145
40
170
155
45
150
40
145
35
140
2014*
50
2013
160
2012
55
2011
165
2010
60
6,000
Summary
140
35
In the primary market segment of single-family
housing in the area of Krakow in 2014,
700
5,000
a further decrease in turnover and number of transactions
was observed. The average size
135
30 price
of the sold house increased. Further decrease in the unit
indicates that the market
600 by competition from single-family houses
of single-family houses is still strongly affected
built outside Krakow and tries to be competitive in million
relation to the prices of apartments in the
m2
PLN
4,000
area of Krakow. The diminishing area of plots for single-family
houses confirms the need to
500
maintain the price as low as possible.
2009
65
800
In 2014, there have been no signs of recovery on the secondary market of single-family
400
3,000
houses. The prices of houses are still high, which is an effective barrier for buyers.
The home market outside Krakow (in neighbouring municipalities) continues to be
very competitive. The average price for a house
on the secondary market in Krakow
300
is 700 thousand PLN. Such an amount outside Krakow
2,000 allows to build or purchase a new
2
house with an area of 150-200 m . The secondary house market is a market with limited
300
supply. The number of houses built in Krakow
200 is small, and in the near future they will not
appear in the offer of the secondary market and therefore, fail to cause a recovery.
250
1,000
200
PLN
thousand
PLN
2004
2005
2006
PLN/m2
2014*
50
2013
100
2012
m2
2011
million
PLN
2009
135
2010
30
At the moment, it seems that the factors 100
that could cause the revival of this market are
macroeconomic
factors,
and
these
–
as
everyone
knows – do not encourage to make
150
decisions about buying expensive properties.
thousand
2007
2008
2009
2010
2011
2012
2013
2014*
1,600
1,400
Chart 5.
The average price
for a house on the
secondary market
of incomplete data
1,200
140
1,000
120800
100600
80400
200
60
thousand
PLN
40
2004
20
009
2010
2011
2012
2013
2014*
million
PLN
2005
2006
Śródmieście
2004
%
2005
2007
2008
2009
Krowodrza
2006
5
2007
10
2008
2009
20
<3
17%
5-6
11%
6-7
7%
7-8
2011
2012
2013
2014*
Chart 6.
The share
of transactions
in houses in particular
price ranges in 2014
4%
8-9
9-10
5%
1%
10-11 0%
11-12
1%
>12
1%
thousand
PLN/m2
2010
2012
2013
Nowa Huta
2011
25
2012
30
2014*
Average
2013
2014*
35
40
35%
18%
4-5
2010
2011
Podgórze
15
3-4
2009
2010
SINGLE-FAMILY
HOUSES
IN THE SUBURBAN
AREA OF KRAKOW
The year 2014 on the market of singlefamily houses in the county of Krakow,
in terms of the number of transactions,
was very similar to 2013 – in the last two
years, this value has stabilized, slightly
exceeding 600 purchase agreements.
Still, market activity is much lower than in
the record year of 2009 (692 transactions).
As compared to 2013, the trading volume
has slightly decreased. This means less
money paid for a single property. (Chart 1)
Data from 2014, presented on the following
charts, was approximated due to the lack
of data from all regions.
Trend lines generated for a wide interval
in the county of Krakow indicate
a stabilization in 2015.
the increase between 2013 and 2014 was
28% and increase in terms of the volume
of trading amounted to 37% year on year.
The analysis of the trend line for the county
of Wieliczka shows a sustained upward
trend, both in the number of transactions
and the trading volume. (Chart 2)
In 2014, the largest number of transactions
of single-family houses was recorded in the
municipalities of Zielonki, Zabierzów and
Mogilany. When comparing data from 2013,
it is worth paying attention to a significant
increase in the number of transactions in
the municipalities of Liszki and KocmyrzówLuborzyca and a decrease – in Mogilany
and Zabierzów.
Data covering transactions from the county
of Wieliczka indicates significant recovery
– in terms of the number of transactions,
23
thousand
PLN
0
thousand
PLN
100
200
300
400
500
600
700
800
0
Krakow district
Wieliczka district
10,000 and20
The average transaction price for a house in the municipalities of the county of Krakow
Wieliczka
10,000
10,000
20
2011
2012
2013
Source: Instytut Analiz Monitor Rynku Nieruchomości mrn.pl
5,000
III.5.2-5
5,000
5,000
thousand
0
thousand
0
thousand
PLN
PLN
PLN
800
Krakow district
Wieliczka district
50
Wieliczka – municipality
40,000
35,000
30,000
Wieliczka – town
250
250
400
400
200
200
300
300
150
150
200
200
100
100
45,000
80
50,000 120
100
100
45,000
50
50
100
40,000
million
0
PLN
35,000
80
60
50,000
45,000
15,000
100
2014
2013
2012
2011
2010
2009
2008
2007
400
Number
III.5.2-4of
25,000
transactions
Trading
20,000
Trend line
15,000
Trend trading 10,000
1205,000
80
60
20,000
2014
2013
2012
2011
500
100
40
15,000
20
2014 5,000
0
thousand
PLN
Wieliczka – town
25,000
Niepołomice – town
Niepołomice – municipality
Kłaj
2006
2005
2004
2003
III.5.2-2
350
150
ieliczka – town
100
Gdów
2007
2003
2008
2004
2009
2005
2010
2006
2011
2007
2012
2008
2013
2009
2014
2010
2006
2005
300
III.5.2-4
a – municipality
Krakow district
350
Wieliczka – town
800
500
400
ołomice – town
600
15,000
liczka – town
e – municipality
15,000
40
20,000
40
III.5.2-4
The number
of transactions and
trading of houses
in the county of Wieliczka
20,000
Chart 2.
municipality
Kłaj
25,000
25,000
Kłaj
60
60
mice – town
Gdów
30,000
30,000
Gdów
35,000
80
municipality
Biskupice
40,000
45,000
thousand
0
PLN 40,000
80
35,000
Biskupice
Gdów
Wieliczka – town
Kłaj
45,000
100
1005,000
20
50,000
Biskupice
10,000
2004
III.5.2-2
Kłaj
Zielonki
Trend trading
Biskupice
15,000
Zabierzów
Gdów
Trend line
40
Kłaj
20,000
Gdów
Trading
Zielonki
25,000
Wielka Wieś
Biskupice
30,000
2003
700
Zabierzów
50,000
Biskupice
Number of
transactions
Wielka Wieś
700
35,000
Zielonki
Świątniki Górne
Chart 3.
40,000
Świątniki Górne
0 million
PLN
Zabierzów
Sułoszowa
300
50,000
Sułoszowa
500
Słomniki
600
Zielonki
100
600
Skawina
100
800
Skała
200
Zielonki
200
800
0 million
PLN
700
Zabierzów
100
Mogilany
300
Zabierzów
2014
2013
2012
2011
100
Wielka Wieś
300
Wielka Wieś
400
2014
2013
400
Świątniki Górne
0 million
PLN
2012
600
Michałowice
2011
500
Świątniki Górne
Sułoszowa
Słomniki
Skawina
Skała
Mogilany
500
Liszki
Krzeszowice
Kocmyrzów-Luborzyca
Jerzmanowice-Przeginia
Iwanowice
2010
2009
2008
2007
2006
2005
2004
2003
200
Wielka Wieś
Słomniki
III.5.2-6
200
iątniki Górne
Skawina
200
Michałowice
300
Sułoszowa
Skała
400
Liszki
The number
of transactions and
III.5.2-3
trading of houses
in the county of Krakow
300
Słomniki
Mogilany
500
Igołomia-Wawrzeńczyce
Chart 1.
400
Skawina
Michałowice
300
Krzeszowice
III.5.2-3
700
Skała
Liszki
400
Iwanowice
2007
2003
2008
2004
2009
2005
2010
2006
2011
2007
2012
2008
2013
2009
2014
2010
2006
2005
600
800
Mogilany
Krzeszowice
500
700
Michałowice
zów-Luborzyca
600
800
Liszki
wice-Przeginia
600
Krzeszowice
Iwanowice
thousand
PLN
w-Luborzyca
Wawrzeńczyce
700
ice-Przeginia
Czernichów
100
Czernichów
800
Iwanowice
300
awrzeńczyce
100
Czernichów
-3
Czernichów
III.5.2-5
Czernichów
Krzeszowice
Liszki
Iwanowice
Michałowice
Mogilany
Skała
Krzeszowice
Skawina
Liszki
Słomniki
Michałowice
Sułoszowa
Mogilany
Świątniki Górne
Skała
Wielka Wieś
Skawina
Zabierzów
Słomniki
Zielonki
Sułoszowa
Iwanowice
III.5.2-1
III.5.2-1
400
150
150
100
100
50
50
0
million
400
PLN
350
300
250
200
150
100
50
0
30,000
60
40
20
50,000
120
45,000
thousand
0
100 PLN 40,000
100
35,000
30,000
25,000
10,000
80
60
20,000
40
20
0
400
200
III.5.2-5
Wieliczka district
700
300
200
III.5.2-7
200
III.5.2-3
80
40,000
35,000
35,000
30,000
60
30,000
25,000
25,000
20,000
20,000
40
15,000
10,000
10,000
20
5,000
5,000
thousand
PLN
thousand
0
PLN
Zielonki
15,000
Chart 4.
The number of transactions and trading of houses
in the municipalities of the county of Krakow in 2014
III.5.2-5
III.5.2-5
80
60
40
20
0
100
0
III.5.2-7
100
200
200
300
300
400
500
400
500
600
700
600
700
800
800
25,000
60
60
20,000
20,000
15,000
40
15,000
40
10,000
10,000
20
20
5,000
5,000
thousand
PLN
thousand
0
PLN
0
Wieliczka – town
Wieliczka – town
Kłaj
Gdów
In the county of Krakow in 2014, for the fourth time in a row, there was an increase in
the number of transactions in which the selling party was a natural person. The activity
of developers in the last three years has remained at a constant level of 200-230
transactions, which should be considered as a positive sign in the current market. (Chart 6)
0
25,000
The analysis of the price of 1 m2 in
development transactions in the county
of Krakow shows – as in previous years,
that in municipalities with a large number
of such transactions there has been
a significant difference between the
maximum and minimum price, depending
on the stage of completion of the sold
building. (Chart 8)
Biskupice
Kłaj
Świątniki Górne
Zabierzów
Sułoszowa
Wielka Wieś
Słomniki
Świątniki Górne
Skawina
Sułoszowa
Skała
Słomniki
Mogilany
Skawina
Michałowice
Skała
Liszki
Mogilany
Krzeszowice
Michałowice
Liszki
Krzeszowice
Iwanowice
Czernichów
Iwanowice
Czernichów
The historical analysis of average transaction prices for real estate in the county of Krakow,
in
with the most developed market, shows a downward trend. In the
100most municipalities
100
municipalities of Skała and Sułoszowa, for the third time in a row, there was an increase
thousand thousand
in the average
amount spent on the purchase of a single-family house. Data indicates
PLN
PLN
a decrease in the differences between prices in particular municipalities. In the town
and municipality of Wieliczka, the average prices for a house are beginning to stabilize;
only in the municipality of Biskupice there was a significant increase. (Chart 3)
III.5.2-6
30,000
In the county of Wieliczka, the number
of transactions in real estate development
increased for the third time in a row.
Equally optimistic information result from
data concerning transactions made by
individuals – for the first time in three years
there has been an increase in the number
of such transactions. (Chart 7)
In the county of Wieliczka, transactions in the town and villages of the municipality
of Wieliczka
400
400dominated. (Chart 5) The most expensive transaction was the purchase
of a house in the municipality of Biskupice – a new building on a 12-are plot was bought
300
300
for almost
1 million PLN.
III.5.2-6
80
30,000
Krakow district
Krakow district
Wieliczka district
Wieliczka district
Zielonki
Gdów
200
35,000
80
Zabierzów
Biskupice
200
35,000
The number of transactions and trading
houses in the county of Wieliczka
The
maximum
values on the graph of trading volume correspond to the maximum values
700
700
of the number of transactions. (Chart 4) The highest trading price in 2014 was recorded
600
600
in the
municipality
of Mogilany – nearly 2.5 million PLN was paid for a 26-are property.
500
100
Number of transaction
800
500
40,000
Chart 5.
Wielka Wieś
Zielonki
800
45,000
Turnover (thousand PLN)
120
100
40,000
Wieliczka – town
40,000
120
50,000
45,000
45,000
Kłaj
Biskupice
Gdów
Kłaj
Wieliczka – town
45,000
50,000
100
Gdów
50,000
100
Biskupice
50,000
Zabierzów
Iwanowice
Czernichów
Iwanowice
Krzeszowice
Liszki
Michałowice
Krzeszowice
Mogilany
Liszki
Skała
Michałowice
Skawina
Mogilany
Słomniki
Skała
Sułoszowa
Skawina
Świątniki Górne
Słomniki
Wielka Wieś
Sułoszowa
Zabierzów
Świątniki Górne
Zielonki
Wielka Wieś
Czernichów
III.5.2-3
III.5.2-7
050
0
2007
2007
2007
2007
2008
2008
2008
2008
2009
2009
2009
2009
2010
2010
2010
2010
2011
2011
2011
2011
50
100
100
150
25
150
200
500
20 000
Wieliczka – miasto
Wieliczka – gmina
Niepołomice – miasto
Niepołomice – gmina
Kłaj
III.5.2-7
III.5.2-6
powiat wielicki
100
0
Gdów
Zielonki
Biskupice
In 2014, developers maintained their activity
in the municipalities around Krakow at the
level from 2013 and 2012, while in the
county of Wieliczka this type of activity
recorded an increase.
Zabierzów
Unit prices should be analysed separately
for each municipality, generally there is
a smaller difference between prices in
the most expensive and least expensive
municipalities.
There is still a lot of interest in cheaper
properties located outside the borders
of Krakow.
Wielka Wieś
Świątniki Górne
Sułoszowa
Słomniki
Skawina
Krzeszowice
Iwanowice
Czernichów
Wieliczka – gmina
Kłaj
Gdów
Biskupice
at krakowski
Summary
In 2014, the number of transactions
stabilized (county of Krakow), or even
increased (county Wieliczka), which is
a positive sign from the real estate market.
Skała
10 000
In the county of Wieliczka, developers 20
5 000
conducted
200 their activities mainly in the
tys.
PLN
0
municipalities of Niepołomice and
Wieliczka.
100
When comparing
the average price per
2
of usable
floor
area in the years 2014
1 mtys.
PLN
and 2013, there has been an increase
in the minimum. (Chart 8)
Mogilany
300
40
Michałowice
15 000
Liszki
400
200
300
500
400
700
600
800
50
0
2007
100
150
2007
2008
2008
Chart 6.
2009
Comparison 2009
of the number
of transactions
carried
2010
out by developers
and individuals
2011
(natural persons)
2013
Wieliczka – gmina
2012
Gdów
Kłaj
2011
Biskupice
Source: Instytut2012
Analiz Monitor
Number of2013
transaction
Developers
2014
Individuals
2014
III.5.2-7
III.5.2-8
0
50
100
150
250
200
350
300
400
20076 000
powiat krakowski
powiat wielicki
20085 000
Chart 7.
20094 000
Comparison
of the number
of transactions carried
out by developers
and individuals
(natural persons)
in the county of Wieliczka
2010
3 000
2011
2 000
2012
1 000
2013
Wieliczka – gmina
Kłaj
Individuals
Gdów
Zielonki
Developers
Zabierzów
Wielka Wieś
Świątniki Górne
Sułoszowa
Słomniki
Skawina
Skała
Mogilany
Michałowice
Liszki
Krzeszowice
Iwanowice
2014
Biskupice
Number of transaction
PLN
Czernichów
Zielonki
Zabierzów
2010
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
2014
2014
100
Maximum price 1 m2
Wieliczka – town
2007
50
2007
0
800
Kłaj
III.5.2-6
Gdów
Krakow district
Biskupice
Average price 1 m2
Zielonki
6,000
Zabierzów
700
Wielka Wieś
* lack of bar means no development transactions in a given municipality
Świątniki Górne
600
Sułoszowa
Słomniki
500
Skawina
Skała
400
Mogilany
Michałowice
300
Liszki
Krzeszowice
200
100
Iwanowice
0
Czernichów
Wieliczka – town
Kłaj
Gdów
Biskupice
Zielonki
Zabierzów
Wielka Wieś
Świątniki Górne
Sułoszowa
Słomniki
Skawina
Skała
Mogilany
Michałowice
Liszki
Krzeszowice
Iwanowice
Czernichów
thousand
PLN
III.5.2-7
150
Chart 8.
Minimum, average and maximum prices per 1 m2 of a house in the municipalities
of the county of Krakow and Wieliczka in development transactions* in 2014
III.5.2-8
Minimum price 1 m2
Wieliczka district
5,000
4,000
3,000
2,000
1,000
PLN
27
200
LAND
IN KRAKOW
In 2014 the land market in Krakow was
still affected by the recovery from the
second half of 2013. This trend was
related to investment land, primarily for
residential multi-family buildings and
commercial land for office development.
A good example of recovery is the example
of several transactions with prices above
10 million PLN.
Increased activity may be explained by the
belief that at the end of 2012 and in the
first half of 2013 prices reached the lowest
possible level and part of the capital from
bank deposits was transferred to the land
and housing market. At the same time,
there was a new influx of capital from
investment funds, especially foreign funds:
investors with “cheap money”, looking for
an alternative to the record-low interest
rates of safe treasury bonds. This is also
confirmed by a large sale transactions
of built-up commercial real estate.
In Krakow there was an increase in the
number of transactions on the land market,
with an increase in turnover as compared to
2013. Preliminary data indicates a turnover
of about 750 million PLN, with approx.
800 transactions. However, we should
remember that these are preliminary data,
and due to the growing demand in the last
quarter of the year part of the transaction
have not been disclosed.
mln PLN 100
million PLN
100
200
300
400
500
600
700
800
900
1 000
200
300
400
500
600
700
800
900
1,000
Chart 1.
2009
PLN/m2
500
1 000
1
PLN/m2
500
1,000
1
Krowodrza
Trading on the land market in Krakow*
2010
2009
2011
2010
2012
2011
2013
2012
2014
2013
Source: Instytut Analiz
Monitor
Krowodrza
Nowa
Huta
* Charts do not include land purchased by the Municipality
Nowa
Podgórze
and the State Treasury
inHuta
connection with the investment
in road infrastructure and the contributions made between
Podgórze
different entities.Śródmieście
Preliminary
estimates for 2014
Śródmieście
2014
0
100
200
300
400
500
600
700
800
900
0
100
200
300
400
500
600
700
800
900
Chart 2.
2009
2010
2009
2011
2010
2012
2011
2013
2012
2014
2013
The number of transations
on the land market in Krakow*
* Charts do not include non-market transactions,
land purchased by the Municipality and the State Treasury
in connection with the investment in road infrastructure
and the contributions made between different entities.
Preliminary estimates for 2014
2014
In the poor year 2009 there were approx. 500 transactions, at a very low value of turnover
of 270 million PLN. In 2011 there were approx. 650 transactions with a value of turnover
of 500 million PLN. The revised data for 2012 showed about 550 transactions with a value
of turnover of about 550 million PLN. The data for 2013 indicate about 750 transactions,
with turnover of about 650 million PLN. Preliminary data for 2014 indicate 800 transactions,
with turnover of about 750 million PLN, which as compared to 2013 is an increase in the
number of transactions by about 7%, and the value of turnover increased by approx. 15%.
Statistics indicate an increase in the unit value of transactions and the emergence of new
funds on the land real estate market that have been transferred from bank deposits
and also, to some extent, from the bond market, which have reached record low yields.
The emergence of new, often inexperienced market players indicates an upward trend,
but is also a warning against excessive optimism. (Chart 1, 2)
In 2014, the average transaction price of building land in Krakow amounted to more
than 600 PLN/m2 and significantly increased as compared to the year 2013, where the
price was approx. 480 PLN/m2. This was a result of the fall in the number of transactions
concerning plots for single-family houses and an increase in the number of transactions
concerning multifamily housing, and a significant increase in the average price of land
intended for services.
Invariably, the largest quantity share of traded land, as in previous years, included plots
intended for single-family housing. Their share in transactions of construction land declined
in 2014 to 50% from 60% in 2013.
Considering the value of transactions, the land real estate market was dominated by land
intended for residential multi-family and residential and service buildings, whose share in the
land trade increased by another 10% as compared to 2013 and amounted to over 55%.
The increase in turnover in the segment of land for residential multi-family and residential
and service buildings was at the expense of plots for single-family houses, whose share fell
below 15%. Turnover on service plots remained at approx. 30%, similarly as in 2013.
Krowodrza has become a leader in terms
of turnover in this segment, with nearly
45% of market share, despite the decline
in the average transaction price to about
900 PLN/m2. The decline in prices is
due to the dominant number and value
of transactions in the area of the widely

understood Bronowice and surrounding
areas, where land has less intensive
development. The prices of housing rose
in relation to 1 m2 of usable floor area.
The average annual prices fell in Nowa
Huta (as in Krowodrza, due to the
purchase of land with a lower intensity
of development) and have not changed
in Podgórze. In the city centre, the average
price rose to more than 3,000 PLN/m2
due to transactions in Kazimierz and the
strict city centre (streets: Piłsudskiego,
Żółkiewskiego, Czarnowiejska).
Good sale results of apartments achieved
by developers in 2013 encouraged them
to replenish the land bank. New players
appeared on the market attracted by the
sale results and a vision of solid gains in the
development industry.
The land market for residential multi-family and residential and service buildings in terms
of number and value of trading was unbalanced in different districts. Investors focused
on the areas of Podgórze and Krowodrza, which accounted for almost 75% of turnover.
29
The most interesting transactions involved
the sale of land for multifamily housing
– at Katowicka Street (Bronowice):
with an area of nearly 7 hectares for
nearly 90 million PLN (1,280 PLN/m2)
and at Buszka Street: 2.6 hectares for
less than 22 million PLN (835 PLN/m2).
In Nowa Huta at Centralna Street the
developer acquired over 7 hectares of land
designated for services in the zoning
plan for 16 million PLN, which is in the
process of judicial proceedings to annul it.
In Podgórze at Ludwinów, a plot at Spiska
Street, with an area of 1.7 ha was acquired
by a developer (Echo Investment) for a price
of over 32 million PLN, but it was also
the subject of the transaction in 2013 for
a comparable price, so the transaction may
have been only a formal transfer. (Chart 3)
The market of plots intended for residential
single-family houses, despite the existing
supply, showed – in comparison with the
year 2013 – an increase in the average
price in Krowodrza and Podgórze.
Market participants focused on good,
more expensive locations, avoiding the risk
of less esteemed locations. The average
transaction price of plots for residential
single-family housing fell in Nowa Huta,
but its number was relatively low.
00
600
700
900
800
1,000
The market of plots intended for services
(commercial buildings) continued its upward
trend that began in 2012. It can be said
that in 2014 the market picked up speed,
especially in the segment of land for office
development. There were some very
interesting transactions, thanks to which the
average transaction price of plots intended
for services increased significantly in 2014
to 1,200 PLN/m2 from 950 PLN/m2 in 2013.
The prices of commercial land intended
for commercial usage ranged from 300 to
1,800 PLN/m2. The prices of commercial
land intended for office development ranged
from 600 to 3,000 PLN/m2.
The most interesting transactions involved
the purchase of land with an area
of approximately 20 a intended for a hotel in
the vicinity of Galeria Krakowska, with a unit
price of 9,850 PLN/m2 and an area of more
than 2 ha for office develoment, also in the
area of Galeria Krakowska, with a unit price
of almost 3,000 PLN/m2 and the transaction
price at nearly 70 million PLN.
In the market of industrial plots, generally
found in Podgórze and Nowa Huta,
there was stagnation, with a small number
of transactions. The price level in the
major industrial areas of these districts
was similar or slightly lower as compared
to 2013, i.e. in Podgórze – in the range
120-250 PLN/m2, and in Nowa Huta
– in the range between 60-200 PLN/m2.
PLN/m2
Chart 3.
The average prices of plots
for multi- and single-family housing
in the area of Krakow in 2014
Krowodrza
Nowa Huta
Multi-family
housing
500
600
700
Podgórze
Single-family
housing
800
Śródmieście
900
500
1,000
Summary
Overall, the land market in Krakow was
characterized by recovery started in mid2013, which is confirmed by the increase
in the volume of transactions and turnover.
The most active market was in the segment
of plots for residential multi-family and
residential and service buildings. Developers
replenished land banks, new players
appeared on the market attracted by the
prospects of solid profits.
The commercial plots segment maintained
its favourable trend from the 2012 and
2013. There was continued interest in
plots for office development. Record low
interest rates worldwide and excess liquidity
of certain funds, especially foreign funds,
results in the fact that capital searches
for alternative investments in relation to
low-interest treasury bonds and part of it
goes to the commercial real estate market
– including the land market.
The segment of plots for single-family
housing showed an increase in relation
to the average transaction price (with
the exception of Nowa Huta), where the
number of transactions dropped.
1,500
2,000
2,500
3,000
3,500
LAND
IN THE
SUBURBAN
AREA
In contrast to the previous years of analysis, in 2014, the real estate market the county
of Krakow witnessed an increase in the number of transactions. An increased number
of transactions does not imply an increase in average unit prices, which show a slight
downward trend. (Chart 2) This situation is a result of the increase in the number
of transactions of agricultural land, and a stabilization of demand for land for residential
purposes.
A corresponding situation occurs on the real estate market in particular cadastral units.
The analysed municipalities show relative price stability, with a slight downward trend in
Jerzmanowice, Skawina, Zabierzów. The precursor of the recovery phase seems to be the
municipality Świątniki Górne and Zielonki, where the average prices in the last three years
have been progressive. In other units, price fluctuations indicate a phase of depression
(end of decrease, the analysed values remain at a low level, similar to previous years
of exploration). (Chart 3)
Invariably, in the last few years, the most expensive municipalities are Zielonki, Wielka Wieś,
Zabierzów and Mogilany, only their order in the ranking changes. Currently, the maximum price
is recorded in Zielonki, and the minimum price in the municipality of Igołomia-Wawrzeńczyce.
31
VI.2-1
500
%
10
20
30
50
40
60
2,500
450
80
70
400
2010
90
100
2,000
2011
350
2012
VI.2-2
VI.2-5
2013
300
2014
1,500
90
250
200
2 500
120
1,000
85
150
100
Chart 1.
60
The80
number
of land transactions
and trading volume
20
5002
20100 PLN/m
0
75
2011
million
PLN
2010
VI.2-22012
1 500
2013
80
Trading volume
Number
2
PLN/m
of
transactions
0
2010
2014
50
2013
2010
2012
2 000
40
2011
100
80
60
2014
90
40
1 000
85
%
VI.2-4
30
50
40
60
70
80
90
100
20
2011
Average price of 1 m2
of undeveloped land
75
2012
0
2013
VI.2-5
2
2014
PLN/m
0
20
80
2010
Chart 2.
500
10
2010
2011
2012
2013
2014
120
Chart 3.
The average price of 1 m2 of undeveloped land in the county of Krakow
2010
Source: Instytut Analiz Monitor Rynku Nieruchomości – mrn.pl
VI.2-8
30
40
20050
60
70
120
80
90
100
2011
2012
2013
2014
100
100
80
40
60
20
20
0
150
PLN/m
2
80
2010
2011
100
2012
VI.2-5
2013
50
60
2014
40
20
0
20
PLN/m
2
100
Zielonki
Zabierzów
Wielka Wieś
Świątniki Górne
Sułoszowa
Słomniki
Skawina
Skała
Mogilany
120
Michałowice
Liszki
Krzeszowice
Iwanowice
Czernichów
PLN/m2
40
20
Undoubtedly, the major price emitter is the city of Krakow, whose proximity implies the
highest prices. Demand for land near Krakow is constantly high. The further away from
Krakow, the cheaper. The reversal of this trend occurs in the area of the so-called local
centres, namely smaller urban centres.
Similarly to the previous years of analysis, in 2014, the land market of the Krakow county
is determined by land intended for housing development, constituting about 59% of all
transactions. Second, in terms of the number of transactions, is agricultural land (including
land for green areas), constituting approx. 36% of the total transactions. Land intended for
other purposes was an insignificant part of the relevant market. (Chart 4)
A small number of transactions of land other than housing and farming land,
and a significant price range result in the fact that averaging or aggregation operations
can lead to wrong conclusions. In view of the above, this part of the market has been
omitted and is not the subject of further analysis.
In terms of the number of transactions,
the largest increase – about 30% – was
recorded in the sector of agricultural
land (a relative difference in the number
of transactions in the analysed segment
of the market between 2013 and 2014),
with a relatively stable demand for
residential land. It should be noted
that a slight decrease in the number
of real estate transactions for residential
purposes concerned the peripheral
municipalities of Krakow, which are of an
agrarian character. In the neighbouring
municipalities, the demand for residential
land was still high. (Chart 6 and 7)
Fluctuation of average unit prices in the analysed real estate market segments is
insignificant. The year 2014 implies their progress both in the housing market, as well as
agricultural land market.
33
%
VI.2-4
PLN/m2
0
2010
2014
2013
2012
2011
2010
mln
PLN
10
20
30
50
40
60
70
80
90
100
Chart 4.
2010
The structure
of transactions according
to the use of land
2011
2012
VI.2-5
2013
2014
Communication
Residental
Agricultural land
Services
1
VI.2-8
1
120
100
80
40
60
20
20
0
PLN/m2
2010
2011
2012
2013
2014
200
150
100
50
Słomniki
Skawina
Skała
Mogilany
Michałowice
Liszki
Krzeszowice
erzmanowice-Przeginia
Iwanowice
ołomia-Wawrzeńczyce
PLN/m2
Czernichów
VI.2-3
2014
120
VI.2-8
100
120
100
80
40
60
20
20
0
PLN/m2
Chart 5.
2010
2012
2013
60
2014
Residential land
80
Average unit prices
of land for residential
and agricultural purposes
2011
Agricultural land
40
20
Summary
The land market is slowly emerging from
0
a phase of depression to recovery.
With regard to the average unit prices, the residential land market is characterized by
relative stability. The exception is the municipality of Skała, in which there was a significant
price disparity, which is the result of transactions in expensive real estate situated in the
town of Skała. The municipality of Skawina is the only municipality of the Krakow county
which has not emerged from the phase of crisis. The area has recorded a permanent
decline in the prices of residential land. (Chart 8)
The forerunners of the recovery are the
following municipalities: Zielonki and
Świątniki Górne.
The agricultural land market is undoubtedly the precursor of the recovery phase, both in
terms of the number of transactions, as well as the average unit price. The demand for
this type of land affects the growth of unit prices. The highest price of land for agricultural
purposes was recorded in the municipality of Zielonki. (Chart 9)
VI.2-3
In 2014 there was an increased demand
for property for agricultural purposes and
an increase in their unit prices.
200
The price of land for residential purposes (investment) is determined by the distance from
Krakow and local centres in particular cadastral units. A similar situation is in the field
150this sector of the market seems to be more harmonious.
of agricultural land, whereas
In the sector of construction land, we have
observed stabilization of unit prices and the
number of recorded transactions.
100
In the five-year period of analysis,
the largest group of buyers of plots of land were
individuals, the second largest group consisted of entrepreneurs (companies, partnerships,
natural persons conducting50business activity, etc.), the third, small group, were local
government units and other institutions. In typically agricultural municipalities, the share
(Chart 10)
of entrepreneurs was negligible.
2
150
125
100
VI.2-6
75
50
25
35
Wielka Wieś
Świątniki Górne
Sułoszowa
Słomniki
Skawina
Skała
Mogilany
Michałowice
Liszki
Krzeszowice
Iwanowice
Czernichów
PLN/m
PLN/m22
PLN/m2
2012
2013
2013
Zielonki
Zielonki
Zielonki
Zielonki
Zielonki
Zielonki
Zabierzów
Zabierzów
Zabierzów
Wielka
Wielka
Wielka
Wieś
Wieś
Wieś
2013
Zielonki
Zielonki
Zielonki
2012
Zabierzów
Zabierzów
Zabierzów
Wielka
Wielka
Wielka
Wieś
Wieś
Wieś
Świątniki
Świątniki
Świątniki
Górne
Górne
Górne
2012
Zabierzów
Zabierzów
Zabierzów
2011
Świątniki
Świątniki
Świątniki
Górne
Górne
Górne
2011
Wielka
Wielka
Wielka
Wieś
Wieś
Wieś
2010
Sułoszowa
Sułoszowa
Sułoszowa
Słomniki
Słomniki
Słomniki
2011
Świątniki
Świątniki
Świątniki
Górne
Górne
Górne
2010
Sułoszowa
Sułoszowa
Sułoszowa
Słomniki
Słomniki
Słomniki
Skawina
Skawina
Skawina
Skała
Skała
Skała
Mogilany
Mogilany
Mogilany
Michałowice
Michałowice
Michałowice
Liszki
Liszki
Liszki
Krzeszowice
Krzeszowice
Krzeszowice
Iwanowice
Iwanowice
Iwanowice
2010
Sułoszowa
Sułoszowa
Sułoszowa
Słomniki
Słomniki
Słomniki
Skawina
Skawina
Skawina
Skała
Skała
Skała
Mogilany
Mogilany
Mogilany
Michałowice
Michałowice
Michałowice
Liszki
Liszki
Liszki
Krzeszowice
Krzeszowice
Krzeszowice
Iwanowice
Iwanowice
Iwanowice
Czernichów
Czernichów
Czernichów
Skawina
Skawina
Skawina
Skała
Skała
Skała
Mogilany
Mogilany
Mogilany
Michałowice
Michałowice
Michałowice
Liszki
Liszki
Liszki
Krzeszowice
Krzeszowice
Krzeszowice
Iwanowice
Iwanowice
Iwanowice
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
0
0
Czernichów
Czernichów
Czernichów
0
0
Czernichów
Czernichów
Czernichów
Chart 6.
The number of transactions in residential land in the county of Krakow
2014
150
150
125
125
100
100
75
75
50
50
25
25
Chart 7.
The number of transactions in agricultural land in the county of Krakow
2014
Chart 8.
The average price of 1 m2 of land for residential purposes
in the municipalities of the county of Krakow
2014
250
250
200
200
150
150
100
100
50
50
Iwanowice
400
200
200
0
Zielonki
2013
800
800
600
600
400
Chart 10.
The sum of land
transactions according
to buyers in the county
of Krakow
Municipality
Natural persons
Entrepreneurs
0
37
Zielonki
Zabierzów
Wielka Wieś
2012
Zabierzów
Świątniki Górne
Sułoszowa
2011
Wielka Wieś
Świątniki Górne
Słomniki
2010
Sułoszowa
30
Skawina
Skała
Mogilany
Michałowice
Liszki
Krzeszowice
Słomniki
Skawina
Skała
Mogilany
Michałowice
Liszki
Krzeszowice
Iwanowice
PLN/m2
Liszki
10
Czernichów
20
Czernichów
40
Sułoszowa
Iwanowice
Skała
Iwanowice
Świątniki Górne
Skała
Słomniki
Świątniki Górne
Mogilany
Słomniki
Michałowice
Mogilany
Czernichów
Michałowice
Wielka Wieś
Czernichów
Krzeszowice
Wielka Wieś
Krzeszowice
Zielonki
Skawina
Zielonki
Zabierzów
Skawina
Liszki
Zabierzów
50
Sułoszowa
50
Chart 9.
The average price of 1 m2 of land for agricultural purposes
40
in the municipalities of the county Krakow
2014
20
30
PLN/m2
10
KUP MIESZKANIE
Z PORTALEM
I KORZYSTAJ Z RABATÓW
W PROGRAMIE TERAPROFIT
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www.krn.pl
TERAPROFIT
.pl
39
ZZZWHUDSURĆWSO
WydziDõRozwoju Miasta / UrzÇG0iasta Krakowa
City Development Department / Municipality of Krakow
[email protected]
www.krakow.pl
41
Major areas of office
concentration in Krakow
Source: Knight Frank
Prądnik Biały
Mistrzejowice
Prądnik
Czerwony
Bronowice
Wzgórza Krzesławickie
Bieńczyce
Krowodrza
Zwierzyniec
Stare
Miasto
Grzegórzki
Nowa Huta
Czyżyny
Podgórze
Dębniki
Łagiewniki
-Borek Fałęcki
Podgórze
Duchackie
Bieżanów-Prokocim
Swoszowice
Rentable stock:
Under construction:
Vacancy rate:
Rents:
City Centre
North
South
103,500 m2
232,900 m2
227,500 m2
43,200 m2
47,300 m2
37,100 m2
4.7%
6.6%
3.8%
13-14.5 EUR/m2/month
10-14 EUR/m2/month
10-14 EUR/m2/month
The Municipality of Krakow
City Development Department
pl. Wszystkich Świętych 3-4
tel: +48 12 616 15 48
fax: +48 12 616 17 17
www.krakow.pl
Publisher:
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