Demand for real estate in Wrocław
The city center is characterized by limited land availability. As a result, even very expensive apartments sell here. For young people, a property located close to their workplace and surrounded by restaurants and pubs is important. It is mainly meant to be a place to sleep. Sales data indicate that apartments in Śródmieście are the most popular, more specifically in the area of the Nadodrze housing estate. This is due to the revitalization of this part of Wrocław. Expensive yet prestigious, apartment-style development projects sell there without difficulty. Apartments for institutional rental are also being built in Wrocław, such as the R4R development on Rychtalska Street.
For some time, properties located in the area of the Fabryczna and Borek housing estates have also attracted considerable interest from buyers. There are few apartments available on the secondary market. The situation is entirely different on the primary market. The city can boast a large number of projects under construction. Projects being carried out in Fabryczna include Nowe Żerniki and Dorzecze Legnickiej; in Krzyki, there is Czechowicka.
Real estate market analysts report that almost half of apartment purchase transactions on Wrocław’s primary market concern units ranging from 40 to 60 sq m. On the secondary market, the situation is slightly different, and such apartments account for almost 60% of transactions. Apartments are also very popular as an investment of capital.
Apartment prices in Wrocław
The previous year saw a sharp increase in the average price per square meter of an apartment in Wrocław. Increases affected both the primary and secondary markets. At the end of 2017, the average transaction price per square meter of an apartment in Wrocław on the primary market was PLN 6,526. At the end of 2018, it was already PLN 7,230. The beginning of 2019 brought a further price increase, from PLN 7,457 in the first quarter to PLN 7,636 in the second quarter.
The situation on the secondary market is similar. The year 2020 is expected to bring a continued, steady rise in prices. This will partly result from the amendment to the developer act. Experts predict that smaller companies will be eliminated from the market, while larger developers will raise their prices. This will result from the creation of the Developer Guarantee Fund and the abolition of open residential escrow accounts. In addition, lower apartment supply in 2017 and 2018, along with consistently high demand, will also contribute to further price increases. It should be borne in mind that Wrocław is a city with a steadily growing population. This demographic growth translates into high demand for real estate, which in turn drives up prices.
At present, the highest price per square meter of an apartment is found in Stare Miasto and Śródmieście. Kępa Mieszczańska has become the most attractive area recently, where the price per square meter is approximately PLN 8,000. Apartments in Krzyki and Fabryczna are somewhat less expensive. Prices range from PLN 5,500 to PLN 6,500 per sq m. The lowest prices can be expected in Psie Pole, especially on the secondary market.
Over the past year, prices increased by 3–11%, depending on Wrocław’s district and the size of the property. Higher prices are also attributable to rising land costs. Since the beginning of 2019, the average price per square meter of land intended for multi-family housing has increased by 22% compared with the price at the beginning of the year. In some locations, this price exceeds PLN 2,000 per sq m.