The premium real estate market in Poland is steadily growing, albeit at a slower pace than in previous years. Luxury home and apartment prices continue to rise, influenced by various factors. Additionally, the perception of luxury is evolving.
In 2024, according to data from Cenatorium, Poland’s luxury and premium real estate market recorded a nearly 7% increase in value, reaching PLN 3.5 billion. As global economic transformations unfold, the concept of luxury is also changing.
“The perception of premium real estate is now not only about fulfilling the unique needs of increasingly conscious consumers but also about advancing digitalization, new technologies, and environmental responsibility,” notes Katarzyna Goryszewska, Head of Luxury Residential Agency, a new business line at Walter Herz. “The premium real estate market is entering a new phase of development. It is maturing. We observe a trend of capital investment in safe locations that are not exposed to climate change risks. Locations that provide proximity to nature are also increasingly valued,” she adds.
Advanced technological solutions, now widely used in premium-class buildings, enhance the quality of life while also meeting energy efficiency and resource-saving requirements.
Luxury Is Increasingly Valuable
“The value of selected apartments sold last year significantly exceeded the record levels set the previous year. Transactions involving luxury real estate often amounted to over PLN 20 million. Premium-class houses and apartments changed owners at prices surpassing PLN 60,000 per square meter. The rising prices are a result of current market conditions, and there is no expectation of this trend reversing anytime soon,” says Katarzyna Goryszewska.
In Poland’s best urban locations, there is a shortage of land for new projects. The revitalization of exclusive buildings remains a niche market. Developers are also constrained by high construction and financing costs for such demanding investments as luxury apartment buildings. This results in a limited new supply in this segment, further increasing the value of existing premium properties.
Meanwhile, demand continues to grow. The affluent demographic of luxury goods buyers is expanding. In 2023, the number of people in Poland earning at least PLN 120,000 gross annually (PLN 10,000 per month) increased to 2.5 million—a more than 30% rise compared to the previous year. This is partially due to the high inflation rates of 2022–2023, which reached double-digit percentages annually.
Hotels and Spas
The domestic luxury hotel and spa market is also thriving. According to estimates from Euromonitor International, sales in this sector in Poland grew to PLN 7.8 billion last year, marking a 16% year-over-year increase.
“The improving operational results of luxury hotels indicate good prospects for this segment in Poland. The value of all key indicators increased in 2024, both in premium city hotels and in seaside and mountain resort properties. Forecasts suggest that by 2029, Poland’s hotel and spa services market will exceed PLN 11 billion,” states Katarzyna Goryszewska.
According to data from Poland’s Central Statistical Office (GUS), the number of five-star hotels in Poland increased by over 4% by mid-2024, while the number of four-star hotels grew by nearly 3% year-over-year. Four- and five-star hotels make up one-fifth of the entire hotel market in the country, totaling 571 properties, including 98 five-star hotels. Rooms in five-star hotels hold a 9% share of the domestic market. Interestingly, the number of three-star hotels, which constitute the majority of hotel accommodations, has decreased over the past year.
The strong position of the industry is also confirmed by investor activity and last year’s hotel investment transactions. The previous year saw acquisitions of four-star hotels such as Holiday Inn Resort Warsaw Józefów and Holiday Inn Bydgoszcz, as well as the five-star Sofitel Grand Sopot.
Source: Manager Plus
