In Warsaw or Kraków, a brick-built garage can now cost more than PLN 200,000. These are record-high prices — but are they really irrational? Standalone brick garages outside residential buildings are becoming increasingly rare, which is why prices for such units have reached their highest levels in many years.
“There was a time when you could buy a studio flat for the price of a garage. The highest prices are seen in large cities, city centres and in cases where the garage is located, for example, in a courtyard. The only good news in this price madness is that prices for parking spaces in underground garages have fallen slightly,” says Mirosław Król, a real estate market expert.
A Garage Has Become a Premium Product
At a time when one apartment is increasingly associated with two or even three cars, parking spaces in city centres are becoming a premium product. Few would have expected that brick garages in courtyards, which only a dozen or so years ago were not considered particularly valuable, would today become a highly sought-after scarce asset.
Experts have no doubt that garage prices are rising and will continue to rise.
“There are more and more cars, and fewer and fewer parking spaces. For many customers, a garage is a highly desirable asset for which they are willing to pay a lot,” says Mirosław Król.
And “a lot” can mean extremely high asking prices. In Warsaw and Kraków, offers of up to PLN 220,000 for a brick-built garage are appearing on the market. In Poznań, record prices are around PLN 200,000. The situation is similar in Wrocław. Prices are slightly lower in other cities. In Szczecin, the record asking price for a brick garage is around PLN 160,000 — in this case, for a unit located in the very city centre, near the prestigious Hanza Tower.
“PLN 150,000–200,000 for a brick garage is an astronomical price for many people. Unfortunately, this is what the market looks like, and offers significantly below this level should be treated as exceptional opportunities,” says Król. “A brick garage is not only protection for a car, but often also a small storage space for tools and household items, so it is useful and should be approached as an investment. Prices here will certainly not fall,” he adds.
The expert admits, however, that some clients are completely unaware of the value of a garage.
“One client wanted to ‘add’ a garage to an apartment sale offer in one of Szczecin’s housing estates. When I told him that the apartment was worth PLN 400,000 and the garage at least PLN 100,000–120,000, he did not want to believe me,” the expert says.
A Space in an Underground Garage Is Cheaper, but Prices Vary Widely Between Cities
What do prices look like for parking spaces in underground garages? They are also high, but some offers in Warsaw are cheaper than in Poznań or Szczecin. How is that possible? It comes down to supply. The capital has more underground parking facilities, so prices can be slightly lower.
“A parking space in a garage building in Poland can cost PLN 30,000, but it can also cost PLN 110,000–120,000. Here, sellers’ expectations depend on demand, supply, location, and whether there are other available parking spaces nearby. My observations show that sometimes, in the largest cities, a space in a garage building is cheaper than in smaller cities,” says Mirosław Król.
There is no indication that prices of garages and parking spaces are about to fall. Developers also point out that construction costs are rising, which is another reason why apartments and garages are often sold separately.
