Asking prices for new apartments in Kraków have increased by 68% over the past five years, but buyers looking for lower costs may find opportunities in developments outside the city. While the average price in the capital of Małopolska has already reached PLN 16,800 per sqm, in the so-called “obwarzanek”, or the ring of municipalities surrounding Kraków, the threshold of PLN 11,000 per sqm has still not been crossed. As a result, a new apartment near Kraków can now be bought more cheaply than in Katowice, the second-cheapest market among Poland’s seven largest cities.
Kraków is strengthening its position as the third most expensive housing market in Poland, behind only Warsaw, where prices average PLN 19,700 per sqm, and the Tricity, at PLN 17,600 per sqm. At current prices, buying an average 55 sqm apartment means spending around PLN 913,000, a sum that is becoming a financial barrier for many residents of the region. Although, according to Statistics Poland, the average wage in the enterprise sector in Małopolska has risen to PLN 9,600 gross, a typical employee would have to spend as many as 95 full salaries to buy such an apartment. This is equivalent to almost eight years of work without any other living costs.
“Just outside Kraków’s administrative borders, the market operates according to completely different rules. New apartments in the surrounding ring are on average 7 sqm larger than those available in the city, while their average total price remains PLN 260,000 lower. This is an amount that would finance more than half of a 58 sqm apartment in Częstochowa, located about 120 km from the capital of Małopolska,” calculated Katarzyna Kuniewicz, Market Research Director at Otodom.
Otodom data show that current asking prices in the Kraków ring, averaging PLN 10,500 per sqm, correspond to the level of prices seen in Kraków in June 2021. Today, a new apartment from a developer in Kraków costs on average more than PLN 6,000 per sqm more than a new unit outside the city.
“The ‘obwarzanek’, meaning the counties surrounding the largest cities, is becoming a natural choice for those who, because of high prices, are forced to look for alternatives outside the metropolitan market. Interestingly, the Kraków agglomeration turns out to be cheaper even than smaller cities in southern Poland. Average asking prices for new apartments in Bielsko-Biała, Kielce and Rzeszów have already reached PLN 11,000 per sqm. However, it should be remembered that, in addition to the price of the property itself, expenses related to possible daily commuting to the city centre are also an important part of this calculation,” the expert said.
Neighbouring regions: a PLN 230,000 difference
Under current market conditions, for many buyers, especially those who do not want to give up city living, a natural step is also to expand their search beyond Kraków towards neighbouring metropolitan areas, with Katowice at the top of the list. This choice is supported by clear numbers.
“The average price per square metre in Katowice is around PLN 12,500, or PLN 4,300 less than in Kraków. As a result, an average new 54 sqm apartment in Katowice costs around PLN 680,000, which is PLN 230,000 less than a unit of similar size in Kraków, at 55 sqm,” added the Otodom Market Research Director.
Both cities, however, still offer a substantial selection. At the end of April, the available developer offer in Kraków stood at 10,000 apartments, while in Katowice it amounted to 5,600 units.
