The income from renting out real estate in Poland is now high more than ever. At the same time, local apartments, even in the capital, do not seem expensive by European standards. So, where and what to buy to rent out in the future?

Where to buy an apartment for rent?
If you plan to rent out an apartment for a long time, then definitely consider the large cities of Poland – they attract new employees, students, specialists, and foreigners. To determine the prospects of a city, analyze the level of unemployment – the lower it is, the more popular the place. A win-win option is choosing the cities where the main Polish universities are located in Warsaw, Wroclaw, Krakow, Gdansk, and Poznan. Students are one of the largest groups of tenants.

Price and rental ratio
Warsaw is the most expensive rental market in Poland. In the capital, the average net rent (without utilities) for a two-room apartment is €408 per month. In Wroclaw and Gdansk it is on average lower by €30, and in Krakow – by €70.

Although high rental rates indicate that the capital is the most expensive rental market, regional cities will be more profitable for the investor. Why? Because real estate in Warsaw is also the most expensive.

The average prices for two-room apartments 40-50 meters in Warsaw in the third quarter of 2018 amounted to €1885 sq.m., in Krakow – €1456 sq.m., in Gdansk – €1604 sq.m., in Wroclaw – €1469 sq.m., in Lodz – €995 sq.m.

It turns out that the investor, buying a 45-meter apartment in Warsaw for €84,818, renting it without interruption for 12 months at a rate of €408, and paying a tax of 8.5%, will receive 5.29% per annum. The payback period will be almost 19 years.

Buying the same apartment in Lodz for €44,784 and renting out for €263 per month, the investor will receive 6.45% per annum, including tax 8.5%. Accordingly, it will pay back the investment in 15.7 years.

Apartment area and repairs
The profitability is also affected by the area of ​​the facility and the scope of the renovation. If you buy an apartment in a residential area, where cheap housing predominates, this will inevitably affect the amount of rent.

According to all analysts, the best choice would be a one-bedroom apartment of up to 45 square meters. These facilities ideally combine comfortable living conditions and a small service charge. It is worth adding that such footage is now the main in Poland’s portfolio of developers, so, the choice for a private investor is huge.