Zakopane like Manhattan?

Zakopane like Manhattan? Not yet, but real estate prices in Zakopane are reaching levels comparable to those in Warsaw and Sopot. Is it reasonable, and what are the further forecasts? Read in the article.

The current property rates in the capital of the Tatras are no joke. Just browse through the services that deal with land and property sales. In the OLX service, the lowest price for a flat in Zakopane is PLN 14,862.80 per square metre, and in the Otodom service – PLN 12,581 per square metre. Of course, we mean here secondary market flats. New apartments already amount to between PLN 22 and 30 thousand per square metre. If the price is lower, it is worth reading the advertisement carefully, because either the object of our search is located 15 km from Zakopane, or the property has a non-residential status.

Record-breaking price of plots in Zakopane

But it is not just cursory research that gives food for thought. A number of experts have commented on this topic in recent months. One of them is Renata Wiatr from the Perfect Nieruchomości company from Zakopane, quoted by the Polish Press Agency: small flats in the centre of Zakopane in old prefabricated buildings are being sold on a large scale, as well as new apartments on the outskirts of the town at prices starting from PLN 16 thousand per square metre.

The agent further specified that this demand is not exclusive to flats and houses. Building plots and even arable land are no less popular: “The prices of arable land near the Tatra Mountains range from PLN 100 per square metre, while building land is sold from PLN 800 per square metre on the outskirts of Zakopane,” Renata Wiatr states.

You are not mistaken in calculating that you would pay PLN 1.5 million for an attractive building plot in Zakopane, and if this amount impresses you, it is worth comparing it with the price of one of the plots at Oswalda Balzera Street in Zakopane, which – according to Gazeta Wyborcza daily – was sold for more than PLN 6 million! According to real estate agents from Zakopane, prices of scenic, building plots under the Tatra Mountains have risen by up to 70% since January 2021.

The housing boom in Zakopane – what are the causes?

The Evaluer Index 2021 report shows that in the second half of 2020, due to the economic changes caused by the coronavirus pandemic,  a new group of buyers has entered the market, looking to protect their capital from devaluation. According to the housing analysis carried out by Emmerson Evaluation, the demand for apartments began to grow, which also translated into an increase in property price levels.

Dariusz Siewierski, Head of the Bestate real estate agency in Zakopane, aptly summarised this situation in an interview with Gazeta Wyborcza: Companies are allocating their financial surpluses to property purchases, and thereby optimise VAT. The basis for all this is very high inflation: keeping money in the bank, they lose 3 per cent or more. If they invest in property, the outlay will pay off. For example, a flat for one million PLN in one year will be worth 1 million 50 thousand PLN, or 1 million 100 thousand PLN.

Will property prices in Zakopane slow down?

Is this rising trend likely to continue? “Zakopane is a very recognisable resort in Europe, and these prices which seem high are only going to get higher. In the next two years, it will be very expensive, it may not even be possible to buy real estate here; only investors who invest their capital all over the world will remain,” Siewierski commented for Gazeta Wyborcza.

These assumptions were confirmed by Expander Polska’s chief analyst, who answered the question “When will the price growth for flats in Poland slow down?” in Studio Biznes hosted by Gazeta.pl. So far, all indications are that this demand is getting more and more intense. A good indicator is what is happening with mortgage applications and loans granted. According to the Loan Information Office, these loans are great in number. In March [2021 – editor’s note], 23,600 loans were granted. Such levels were not even seen before the pandemic at the height of the boom. It is 12% more than last year. (…) This suggests that if there is so much interest in loans, it is likely that demand [for property – editor’s note] will continue. “So far, I do not see any symptoms to show that the prices will fall,” Jarosław Sadowski said.

Zakopane as the capital of luxury

High prices do not deter businessmen. Responding to the demand of a growing group of exclusive customers, hotels are expanding their offerings to include helipads, and the town continues to offer more luxury entertainment: aqua parks, medical clinics, expensive shops, shopping malls, casinos and adult clubs.

Presidents of internationals corporations build in Zakopane, ministers invest there, film stars spend their holidays in the town, as well as… gangsters (it is enough to mention the story of the leader of the Pruszków mafia). It is not without reason that Agata Wojtowicz, President of the Tatra Chamber of Commerce, compared Zakopane to Manhattan in an interview with Gazeta Wyborcza. Just instead of the Fifth Avenue, the highlanders invite you to the no less attractive Krupówki Street.