Where Was It Worth Buying a Rental Apartment in 2023? City‑by‑City Profitability Analysis

Introduction – why invest in buy‑to‑let property?

Investing in rental property has been gaining popularity in Poland, especially amid rising inflation and uncertainty on financial markets. Real estate is considered one of the most stable investment classes, offering regular rental income and long‑term capital appreciation. In times of global economic turmoil, many investors look for safe havens, and properties in major cities such as Warsaw, Kraków or Wrocław appear among the top choices.

Why is buy‑to‑let attractive? First, it provides regular passive income, invaluable during economic volatility. Second, the growing number of young professionals and students renting in university cities maintains constant demand. Finally, a well‑chosen property can appreciate, allowing you to sell at a profit after a few years.

Nation‑wide analysis of purchase prices

Flat prices in Poland vary by city and neighbourhood. In 2023 the average prices in the largest cities remained high, with Warsaw and Gdańsk recording the sharpest increases. Conversely, smaller cities such as Radom or Częstochowa are cheaper, making them more accessible to novice investors.

Sample average purchase prices in 2023:

City	Average price per m²
Warsaw	14 387 zł
Gdańsk	12 776 zł
Kraków	11 900 zł
Wrocław	10 800 zł
Radom	6 590 zł
Częstochowa	6 700 zł

Large cities command the highest prices, yet smaller locations offer investment bargains. For first‑time landlords lower entry prices reduce the capital threshold when building a property portfolio.

Annual price growth and potential profit

Annual price growth is crucial for investors who seek not only rental cash‑flow but also capital gain. In 2023 Katowice and Warsaw posted the fastest growth, signalling rising interest in those markets.

Example annual growth rates (2023):

City	Annual price growth (%)
Katowice	14.55%
Warsaw	10.30%
Kraków	9.45%
Wrocław	8.60%
Radom	7.50%

Cities like Katowice attract more investors, driving prices up. Those seeking quick capital gains should consider markets where values rise rapidly yet remain relatively affordable.

Rental price analysis in Poland

Rental rates depend on location, size and finish. The highest rents are in Warsaw, Kraków and Wrocław, which translates into potentially higher yields for landlords.

Indicative 2023 rents:

City	Rent up to 40 m²	Rent 90 m² +
Warsaw	2 846 zł	10 738 zł
Kraków	2 500 zł	8 000 zł
Wrocław	2 400 zł	7 600 zł
Toruń	1 600 zł	1 652 zł
Częstochowa	1 394 zł	1 550 zł

Warsaw clearly leads in rents, offering the highest returns on premium units. By contrast, towns such as Częstochowa or Toruń have lower rents, suiting investors seeking lower‑risk assets.

Studio ROI – the most profitable investments

Studios are the most popular buy‑to‑let format, offering quick payback. In smaller cities the ROI on studios may exceed that in major metros, giving higher profit despite lower rents.

Sample ROI for studios (≤40 m²):

City	Studio ROI (%)
Radom	8.84%
Szczecin	7.90%
Łódź	7.65%
Warsaw	6.83%
Kraków	6.50%

Radom delivers the top ROI, above 8 %, representing a solid result for investors.

Factors affecting investment profitability

Profitability depends on more than purchase and rental prices. Location, unit standard and regional growth prospects are crucial.

Location – Central districts near universities, business hubs or transport offer higher rents and occupancy, whereas outskirts are cheaper but harder to let.

Unit standard – Modern, well‑finished flats attract higher‑income tenants, boosting income stability. Fully equipped units are especially popular.

Infrastructure & regional growth – Dynamic cities such as Wrocław or Kraków show better appreciation potential.

Labour market stability – Low unemployment and good jobs sustain rental demand; analyse local economic forecasts before buying.

Investing in small towns – a chance for higher ROI?

Smaller towns are often overlooked yet can offer higher returns. Prices are lower while demand from students, young workers and families stays solid.

Why consider smaller towns?

1. Lower entry prices – allowing purchase of more units for the same capital.
2. Stable demand – limited new supply means vacancies fill quickly.
3. Higher ROI – low purchase cost plus steady rent yields attractive returns.

Example studio ROI in smaller towns (2023):

City	Studio ROI (%)
Radom	8.84%
Toruń	7.50%
Częstochowa	7.40%
Białystok	7.20%

These markets suit investors with smaller budgets seeking high yield, though a local market study is essential to confirm demand.

Outlook for Poland’s rental market

The rental sector is growing fast and prospects look bright. Increasing demand in academic and economic centres suggests buy‑to‑let will stay profitable. Short‑term rentals also rose in tourist cities like Kraków and Gdańsk.

Drivers of future growth:

• Changing preferences – Young Poles favour renting due to credit hurdles and career mobility.
• Institutional letting – The build‑to‑rent trend brings large‑scale professional landlords, boosting supply.
• Foreign capital – Poland’s economic growth and political stability attract overseas investors, expanding the market.

Summary – how to optimise investments in 2024?

Buy‑to‑let remains one of Poland’s most profitable investment avenues. Success hinges on choosing the right location, optimising purchase cost and analysing rental demand. Warsaw, Kraków and Wrocław offer lower yet stable returns, while smaller towns like Radom, Toruń or Częstochowa can deliver higher yields.

Investors should monitor demographics, infrastructure and regional economies, and consider higher‑standard units that attract affluent tenants and secure long‑term income.