What types of properties are the most popular among Polish investors?
Intro
You’ve probably noticed how sites like Money.pl, Forbes, and Onet have recently started publishing articles on Poles buying property in Spain. Is the hype around this topic surprising, at all? Not really, if you look at the numbers of Polish people investing in the Spanish property market between 2022 and today.
2023 hit an all-time high, with over 3,000 properties purchased by Poles – most of them in Costa del Sol and the neighbouring Costa Blanca. With the numbers I’ve seen, 2024 is well on its way to beat that record, too.
Where did this popularity come from, and what property types are most popular among Polish investors?
Here’s my take on this subject, as someone who not only helps Poles invest in real estate in Spain, but also lives here myself.
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Investing in Spanish property – why do Poles choose Spain?
I’ll begin with the reasons that relate to the entire country, and then zoom in on Costa del Sol (which is where we’re based at Hometailor, and where we’re seeing a huge growth in the Polish expat community).
Polish people are buying property in Spain for two main reasons – either to relocate there (more and more popular these past few years), or to rent it out.
The reason why the country is winning against other Mediterranean locations like Greece or Italy is that it hits all these boxes:
- Price availability – it’s not a myth that you can buy property for the same price here and in major cities in Poland. The average cost for residential property of 120m2 in Spain and Poland are, respectively, €189,240 and €174,720. The difference is very slim. There is a variety of real estate to choose from, for all budgets, purposes, and preferences.
- Sociopolitical concerns – This might be “an elephant in the room” type of topic, but I can tell you from my experience that it’s one of the main reasons why Poles research houses for sale in Costa del Sol. I’m not alone in this observation – some media sources refer to it subtly, like Money.pl calling it a “geographically-diversified investment”. Others, like Gazeta.pl, report that in 2024, Polish buyers were still looking to buy a property in Spain as a backup plan, in case war spreads to Central Europe. Putting this grim perspective aside though, there’s also plenty of other factors.
- Great transportation & infrastructure – both land and aerial; for example, it’s only a 4-hour flight to get to Malaga from Warsaw.
- Growing expat community – this is one of the “softer” reasons, but I see it getting mentioned on Polish forums recurrently. If you move to a region like Costa del Sol, you’ll be able to communicate in English in most places.
- Access to good healthcare – most Polish investors fall in the 35+ year-old category (and many have families), which means they prioritise quality of medical services. On top of public hospitals, there are also plenty of premium clinics, especially in the Sunny Coast.
- Short-term rental property potential – the number of tourists in the first half of 2024 showed a 13% YoY growth compared to the same period in 2023. Plus, it has good weather all year long, as opposed to many other parts of Southern Europe.
Why are Poles looking for houses for sale in Costa del Sol, specifically?
These last few years Costa del Sol has been garnering more and more spotlight from the northern Costa Blanca region.
There are a few reasons that make this area so attractive:
- It’s easy to get a tourist licence – especially, if you compare Andalucia to other regions popular among short-term renters. If you work with a reputable real estate agency, you can actually check if a property you’re interested in permits vacationers and how high the community costs are for rental apartments.
- Very few issues with illegal residents – which is, I’d say, the no. 1 reason why foreigners are hesitant about buying. Costa del Sol is the least affected region, I discuss that in detail in a dedicated article on Okupas.
- Mainland Spain AND great weather – the Sunny Coast gets over 320 sunny years all year long and soft winters. The only other place you’d have this kind of experience in Spain are Canary Islands, but you can only fly there. Those who want to stay at their property for longer have the option to drive to Costa del Sol, which is unbeatable.
- A lot of new developments – this is something that makes Costa del Sol shine in comparison to other regions. Now, I want to say straight away that a ‘new development’ is nothing like what you’re used to in Poland – in the good sense. It will take you much less time to make the place habitable, either for you or your renters. More on that next.
Property types in Costa del Sol – what are your options?
You can find a place for almost any budget. I’d say that, to get a two bedroom apartment in a good standard (either new or resale), the median costs would fall between €240,000 and €400,000.
It’s not to say that you can’t find a place for €100,000 or less– but these places will likely be in a less attractive neighbourhood or require more renovation. In any case, this debunks the myth that you need at least a few million PLN (or EUR) to invest here.
Now, a bit more about your options.
Option 1: New developments
When you buy a new apartment or house in Costa del Sol, usually, you get an apartment that is in a finished state. The floor is there, the bathroom and kitchen are ready with all the appliances, the doors are installed – all you have to do is bring in the furniture.
This is a huge relief, saving you time (and nerves) of having to undergo massive contractor work, especially if you’re not going to be there to oversee it. That’s why some foreign investors, like Poles, choose this option frequently.
There are plenty of these new developments to choose from – at Hometailor, we got access to nearly 200 new developments just this year!
Option 2: Resale properties
Some people don’t mind buying an older property – in fact, certain buyers specifically want an ‘original’ Andalusian villa. Once renovated, these can be a dream come true for those who relocate there or want to rent out a unique property.
Of course, this comes at a price. You can’t always estimate renovation costs properly, as some issues with the building aren’t revealed until construction work begins. Also, you need to budget in a few months (at least) to restore the place to its former charm.
Unfortunately, I’ve heard of several stories, where the costs of renovation amounted to more than the costs of buying a new development. So, this type of real estate (and any other resale one, for that matter) should always be bought with caution.
I recommend working with a local agent or contractor, as there are many things they can spot straight away, like mould or cracks in the foundations.
Buying property in Spain – what types do Polish investors prefer?
Now, if you want to follow in Polish investors’ footsteps, here are a few of their preferences – based on both reports and my observations:
New developments over resale properties – They go for convenience and quick availability – about 75% of all purchases this year so far were in freshly constructed apartments and villas.
Apartments over houses – About two-thirds of Poles purchase apartments. Most of them have a square footage between 80 and 250 m2. Those who decide to buy a house decide on a large property, i.e., between 250 and 600 m2. They also usually have a private swimming pool.
Budget spent – Most buyers close on properties between €350,000 and €1,500,000. What I find particularly noteworthy is that 90% of these investments are settled by cash, with no mortgage involved.
Favourite locations: I’ve lived in Costa del Sol for over 7 years, and I can tell you that I’m already seeing a few favourite cities among Polish buyers. They particularly invest in new developments in Benalmadena, Mijas, Fuengirola, and Estepona.
Polish investors – who are they?
Out of the buyers I’ve worked with (and what I’ve heard from other realtors working with Poles), there are relatively few digital nomads under the age of 40. Most buyers are former or current entrepreneurs, over the age of 50, who either want to make a next real estate investment or find a place to retire.
The first group is motivated by the fact that property prices in Costa del Sol have been rising year over year (for example, just between 2023 and 2024, the prices for apartments in Malaga grew by 14%). They primarily buy to rent the property out, with a potential to resell it at a profit given these promising per m2 rates.
The other group are looking for a place for retirement, either all year round or in the rather gloomy period in Poland from October to March. They might rent out the place in the spring and summer during the ‘hottest’ season.
If you want a deeper dive into what drives Polish investors to search for a house in Costa del Sol, SpiderWeb wrote a good article, bringing forward a few personal stories.
Hometailor – your Polish real estate partner in Costa del Sol
Whether you’re looking for a rental property or a place for your exclusive use, we’re happy to help! We speak Polish and have access to thousands of properties – take a look at our listings, and reach out for more details.
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