Ukrainians not only work in Poland but also invest in Polish real estate. They are increasingly willing to buy apartments in Krakow. It also draws attention that the Ukrainian client mostly pays cash, is a young person and buys a small area apartment.
According to the data of the Ministry of Interior and Administration, last year our eastern neighbours bought 64 thousand square meters of living space, which is 81% more than a year ago.
The most popular place where foreigners buy flats is invariably Warsaw. Of the 4648 apartments purchased last year by foreigners in Poland, about 2 thousand is located in the capital. In 2016 in Cracow entities from Ukraine bought almost 400 properties including residential units, commercial premises and land properties. For comparison, in 2015, in Krakow property purchased a total of 126 Ukrainian entities in 2014 – 97, and in 2010 – only 18.
Over the past two years, we can observe an increase in interest in the purchase of residential and commercial space. These are mostly small real estate, ranging from 40 to 70 sqm.
Citizens of Ukraine are eager to use the help of agents and proffesional Polish consulting companies with adequate knowledge and experience. They also realize that buying a Polish property is one of the reasonable moves, much appreciated by the migration offices officials, in the process of application for Temporary Residence Permit (TRP).
As noted, the Ukrainians most often buy residential and commercial premises – they can buy without the consent of the Polish authorities. Rarely decide to purchase land and non-residential premises – to complete such a number of formalities required by the Ministry of Interior and Administration.
To obtain a permit to purchase non-residential property, foreigners must submit an application with a package of documents, including owner willingness to sell the property to a foreigner, ZUS and the tax office certificate confirming no arrears of taxes and contributions.
Foreigners must also indicate the circumstances that confirm the applicant’s relationship with Poland. Later, these details will be subject to detailed verification. The authorization procedure lasts about 2.5 to 6 months. A stamp duty of PLN 1570 should be paid for the application. The decision is valid for two years.
Krakow is particularly attracted to its eastern neighbours as an academic city and home to many outsourcing companies. Due to the conflict in the east of Ukraine a large number of entrepreneurs moved abroad or west of Ukraine. Poland was at the moment the best option, because Poles have a similar mentality and language, so it is easier to assimilate and develop business here.
Agents divide customers into four groups. The first is families, most often parents, students who buy children’s apartments. The second group is families with children. They often move here because of armed conflict. The third group are the buyers for the investment, most often for rent. The fourth group are young corporate employees, often the IT industry. Although their income gives them possibility to take a loan, the vast majority of Ukrainian customers pay in cash.Buying real estate in Poland gives definitely greater security than deposits in an Ukrainian bank.
According to estimates of the National Bank of Poland, in 2016, 1.2 million Ukrainians worked in Poland. They bought more apartments in Poland than Germans and Britons. The Krakow real estate market, just after Warsaw, enjoys the most popularity among foreigners. In 2016, foreigners bought 1963 premises in Warsaw , and 1016 in Krakow of which almost half of the buyers came from Ukraine.
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