Real estate has almost always been an attractive and stable capital investment. In the current economic situation in Poland, their role is additionally increasing, as confirmed by recent studies. At the same time, there is a growing presence of our compatriots on foreign property markets, where Spain definitely stands out.
How and in what are Poles investing?
Poles’ attitudes to finance are presented in the report, which was preceded by a quantitative survey and prepared on behalf of the Think! Foundation and the Leopold Kronenberg Citi Handlowy Foundation. It confirms that the number of Poles who invest their money is steadily increasing. Currently, more than 20 per cent of respondents declare such activities, with capital invested primarily in real estate. In second place, respondents indicate valuables (e.g. paintings) or bullion (e.g. gold or silver). Investing on the stock market (3 times less popular answer than real estate) and in investment funds (5 times less popular answer) was indicated much less frequently.
Poles emphasise that they rely primarily on their own experience when making investment decisions. At the same time, more than 70 per cent of respondents declare that their financial situation allows them to save regularly, and more than 35 per cent say that putting money aside every month is not too much of an effort for them. 17 per cent of respondents indicate the purchase of a property or a car as their main saving goal. As the authors of the report point out, a slow increase in interest in saving for the purchase of property has been evident since 2015, but 2022 saw a marked jump in this area – from 6 per cent to 17 per cent.
It is worth noting that Poles remain moderately optimistic about their finances. One in four respondents estimates that their financial situation will improve in the near future. Still, many Poles keep their savings in the proverbial sock. 22 per cent of respondents rely on cash as a form of investment. When making investment decisions – in addition to their own experience – our compatriots are also guided by the opinions of friends and family – indicated by 23 per cent of respondents.
Property in Spain attracts Poles
Exactly 2,460 houses and flats in Spain were purchased by our compatriots between January and September 2023. This is more than in the same period of 2022, so last year could turn out to be another of the record years in terms of Poles’ participation in the Spanish property market. In the third quarter of 2023, it reached 3.7%, which translated into ninth place and 800 houses and flats purchased between July and September alone.
Interestingly, still more than 90% of transactions in the Spanish property market are concluded without mortgage financing. The structure of purchases is 70% flats and 30% detached houses with private pools. Flats are mainly transactions in the price range of €350,000 to €1.5 million. 70% are primary market purchases and 30% are secondary market purchases.
The Iberian Peninsula attracts Poles not only with more than 320 days of sunshine a year and the unique climate of the Costa del Sol. In the age of remote working, more and more of our compatriots are first opting for long-term rentals and then moving to Spain permanently. An invariably popular model for investing in property is to buy a holiday home that can be rented out for the rest of the year. This provides a stable – and most importantly – real rate of return of 4-6%, depending, among other things, on the location.
