Residential plots in Katowice

Consistent growth of apartment prices and high demand are connected with high prices of building plots. Average prices in southern districts (Podlesie, Kostuchna, Zarzecze) are about PLN 200 per sq m. The closer to the core centre of the city, the higher prices. In very nice, old residential areas - Ligota or Ochojec prices reach even PLN 300. Price records we can find in Brynów, a traditional winner in category: "the most expensive and snobistic district in the city". Developers and private investors want to pay for a well located plot even 1000 PLN/sq m!
This situation is connected with main tendencies on the local residential market. Accessibility for building lands is limited, most of Katowice area lacks plans for the local land development, which provide specification of each development planned in a particular location. Plans describe many crucial elements, for example what is the purpose of the land (commercial, residential buildings, warehouses, recreation etc.) and what area and height of investment is permissible.
Another thing is that period to obtain a construction permit is usually in Poland very long. sometimes it takes even one year to complete all documents necessary to start an investment, because you must collect about 10 different formal opinions of local institutions.
You should also remember that new flats are often sold even before the developer obtains a construction permit. Developers try to build more and more efficient profitable constructions. The rule is simple - investors compete to get the best located land, the better location, the higher price for their apatments or houses can be reached.
So may be buying good building plot is the best investment today? I'm sure that's right. There is only one problem - it is really difficult to find one...

Low supply - high demand. Residential market in Katowice

Increasing demand for residential units causes that, like in other Polish big cities, most of schemes are sold before the completion date. Buyers are mainly looking for small units (1 or 2 bedrooms). Because of mortgage availibility most of them are young people, well educated and earning more than Polish average salary. Financing conditions offered by banks are very attractive. Mortgage rates remain at low level of 5-6% and most of purchases are financed only with mortgage loans, without engaging buyers' savings.

Fortunately the number of foreigners investing their money in Katowice is still increasing. What countries do they come from? UK, Ireland, France, Spain, Italy. Some of them are looking for accomodation close to the companies they work in, others treat Katowice as a perfect place for investment, because of low prices and their rapid growth.
In the summer 2006 the average price was about PLN 2200-2400 per sq m, today it is quite difficult to find a flat below PLN 4000! So the annual growth is about 80%! For the cheapest units (like Szopienice, Zaleze) you must pay about 3000 PLN, but in the most expensive (Brynow, Os. Millenium) prices per 1 sq m vary between PLN 6000 and PLM 9000!

Residential market in Katowice - main tendencies

In last two years the capital of Upper Silesia was fast developing residential market, although we had much less investmets than for example Warsaw, Cracow or Tricity. The growth of apartments prices in the period from the beginning of 2006 till now was extremally rapid. Specialists claim there is still shortage of about 10 000-15 000 residential units, so, considering the development pace, it would take several years to satisfy demand!
What is most important for buyers? Prestige of the district, reasonable price and good access to public transport. The housing construction sector is developing mostly in southern districts, like Kostuchna, Zarzecze, Podlesie, Panewniki. Piecful and green environment is their main advantage. And, what's more, these are the only places where building plots for developers are available.
Very desirable areas are still the southern parts of the city centre, Brynow and Koszutka. Unfortunately there are only a few new residential investments located in these places - apartment houses on Jesionowa Str. (Koszutka), Fliegera Str. (near Academy of Sport), Osiedle Przystan on Paderewskiego Str. and Osiedle Ptasie in Brynow (left side from Kosciuszki Str. vis a vis Kosciuszki Park), which is still found the best and the most expensive district in the city.

Sexy Silesia?

In the very beginning I must explain something to avoid any misundertandings... I dont't mean neither next edition of Erotic Fair nor the newest go-go club in our region:) In June, during CEPIF (Central Europe Property & Investment Fair) in Warsaw, there was a panel discussion untitled ambigously: "Sexy Silesia"

In our most popular local newspaper "Gazeta" citizens of Katowice could find a big advertisement informing about this event. And there would be nothing especially interesting about it, but the idea... was really uncommon!

The first thing - the controversial slogan- "Sexy Silesia". Does anybody think that the biggest in Poland industrial region can be sexy? And, what's more, on the the poster inviting for the conference meeting, instead of tired, covered with coal dust miners' faces we could see a young charming girl, wearing golden high heels and a smart lace dress. She probably doesn't care for problems connected with restoration of Silesian industrial areas, unemployment, air pollution... Is this a new symbol of the region?
We, Silesian citizens, should shake ourselves free from this old sterotype: Silesia - coal - iron - coal-mines - ironworks - heavy industry - destroyed natural environment... Now it is high time for changes. Modern, all-round developed region, the perfect place for Polish and foreign investors, the place, where thousands of young, well educated professionals could find their ideal work. Logistics, outsourcing, new technology, call-centers, different service and commercial undertakings.
This place, the most industrialised and heavy populated in Poland, can be potential - either for investors from all over the world, or for us, inhabitants... Can it be ... sexy? Yes, let's answer, why not?

Do you want to buy an apartment in Katowice?

If you don't know our city and, in spite of this, you are still interested in buying some flat here - read some useful hints below.
Of course each village, city or metropolis has its better and worse residentional districts. Prices on real estate market are the result of many different factors: location, type of buliding, its age and technical condition, infrastructure and facilieties availability, neighbourhood, finally - fashion tendencies (some places are or will just become fashionable... and expensive...)
Before you buy any poperty in the capital of Upper Silesia - you should know there are few districts of very good reputation and some, you shouldn't explore when it's dark.
So read carefully, please, here is my private rank.
On the top you will find southern part of the center. The beginning of Katowice as the biggest industrial city in Silesia came back to the XIXth century. In the center you can find many tenement houses from the end of the XIX and first years of the XXth century. Remember one useful Polish word - "kamienica" - it's the name of this kind of buildings, in contrary to modern blocks of flats called "blok, bloki" or old workers-houses named by aboriginal Silesiamen in their dialect "familoki" (sounds familiar? yes, this name means: houses for family).The most representative streets with old architecture objects are for example 3 Maja Str., Slowackiego, Warszawska, Kosciuszki, Jagiellońska Str. If you are visiting our city as a turist you should make a sightseeing tour by these streets. Pay attention to monuments: the Mickiewicz High School built in neogothic style, the Silesian Theatre in The Central Place, the Neo-Romanesque Evangelical Church inWarszawska Str., the most beautiful in Katowice neogothic Church of the Immaculate Conception of St. Mary the Virgin, built in 1862-70 in Mariacka Str.
You shouldn't omit some younger but interesting buildings- the Silesian Technical University in Krasinskiego Str., built in 1928-32 in style joined classicism and functionalism, and administrative centre of Katowice on Sejm Slaski Square - with The Silesian Parliament and Regional Authority from 1925-29 and the Languages Department of the Silesian University built in 1936. Worthseeing is also the Arch-cathedral of Christ the King, built during 1926-56 and the "skyscraper" built in Zwirki i Wigury Str. 1930-32, a 14-storey tall highrise, Poland's tallest building at that time.
If you don't like car traffic and are looking for peaceful, quiet apartment in an old stylish tenement house - look for something in the neighbourhood of the Arch-cathedral - in Wita Stwosza Str., Jordana Str. or a little bit further - Bratków, Astrów, Narcyzów, Różana Str. Especially last four of them are famous for nice, stylish buildings from 20's and 30's of the XXth century, projected for local elites- lawyers, engineers, doctors. Similar buildings, typical for modernism and functionalism can be found on the opposite site of Kosciuszki Str., for example in PCK Str., Stelmacha, Zajaczka, Rymera Str. This part of the center has been said to be the most attractive, elegant and prestigous district in Katowice, from the beginning of the XXth century - till today.

Are you Building? Yes, why not?

Every day our local mass-media inform us about new investments, which are to be built in Katowice in next years and change our city into XXI century metropolis...
TriGranit, Eurocape, Reinhold, Hollybrook, Gant, GTC, Havre, Torca... Have you ever heard about them? If your answer is "not" - in several nearest months you should realize, that these developers are responsible for the new view of Katowice!
Today we start a quick review of the most spectacular building projects in the capital of Upper Silesia. Hundreds of square metres of commercial space, modern offices, luxurious hotels, comfortable apartment-houses - developers' plans for next three years are really ambitious...
So let's start.
After summer holidays Eurocape is going to build a block of modern buildings by Chorzowska Str., between Superjednostka (the biggest block of flats in Katowice, built about 1970) and The City Bank. This ruined building, known as "The Business Center of Katowice", which unfortunately has never been finished and scared us for almost ten years, has finally found a new owner. The building is to be rebuilt, the part with The Business Center is planned to be changed into a high class hotel and near by investors want to build a 26-floors apartment house. Almost everyone in Katowice is dreaming about the marvellous sight from its highest floor, and probably a 200 sq.m. penthouse on the last floor will be the most desired place living for the reachest inhabitants of Silesia! And projects of this Irish company realized in RPA increase our appetites!
A big residential investment is to be built by Hollybrook, the company known for its projects in Great Britain and Ireland. By Sokolska Str., close to the main seat of The ING Bank and just in front of "Żyletka"- 24-floors building, which is one more example of socialistic residential architecture from 70's located in the real center of our city. The new building is it to be even higher, according to some gossips more than 30 floors are planned...
Also by Sokolska Str. but closer to Wolności Square, at the corner with Opolska Str. Spanish Torca is preparing an apartment house with the area of 12000 square metres. In the neighbourhood of commercial gallery King Cross, close to Górnośląska Str. and The Muchowiec Airport the same company has bought a 2 hectares building plot and is going to realize even bigger investment - 60000 square meters of new flats and apartments! One more undertaking of this Spanish company is the residential complex located by Bytkowska Str., in the northern part of the city, just in front of the biggest in Poland park area, between Katowice, Chorzów and Siemianowice. This place, perfectly communicated with the center, thanks to its sorrounding and available facilities is one the most expensive residential district in the city.
One more - Polish company Gant (at least we have found our local investor among different foreigners!) is going to built in the autumn a big complex with apartments and offices by Olimpijska Str. Nice place in Koszutka district, very close to the center, just behind one the most significant architectural objects in Katowice called Spodek (this strange building looking like UFO for years was a symbol of our city, till now every month there are many music performances, concerts, sport matches, shows and exibitions taking place in it).
So? Do we have an investment boom in Katowice? For sure we should watch carefully all undertakings mentioned below. And wait to the autumn, than we will see who and how quickly will start first building works...

How can foreigner buy real estate in Poland?

If you are foreigner interested in buying a property in Poland you must first answer the question if you are a citizen of Member States of the European Economic Area. If your answer is "yes" - you can buy almost every real estate, except of agricultural and forest real estate (during the period of 12 years of the Republic of Poland Accession to the European Union), and second house (during the period of 5 years of the Republic of Poland Accession to the European Union).
For all foreigners coming from different countries there is one general rule - you should have an official permit (an administrative decision from the minister competent in internal affairs). But permit is not required if for example: you buy a separate living accommodation, you buy real estate if you are living in the Republic of Poland for at least 5 years following the granting of a permit to settle thereto, you are the spouse of a Polish citizen and residing in the Republic of Poland for least 2 years following the granting of a permit to settle thereto, of real estate that as a result of acquisition shall constitute marital estate of the spouses, etc.
All details you can find on the web side of The Ministry of Interior and Administration. Read very carefully art. 8 of the Act. And buy real estate in Poland!

Why should you invest in Katowice?

What encourages investors to invest their money in our city? The attractiveness of Katowice as the capital of Upper Silesia is still growing. Our most important advantages are well developed infrastructure (basic facilities and equipment, really good roads, well prepared and educated employees, long tradition in industry) and strategic location on the map of Europe. This is why our region is often compared with the Ruhra Basin in Germany, many historical and economic factors are very similar for both of these regions. And look, how perfect German people have used their chance ...

What is especially important – Katowice as a city are better and better recognized in Europe, the proof of this statement was for example our presence on MIPIM 2007 in Cannes – international fair and conference about property market, where our presentation gained a lot of interest among foreign investors (not only from Western Europe but also form Arabian countries or Japan!). The participants of this international business meeting were shown well-prepared, modern and open-minded conception of local development, presented by Katowice.

Our next good point is very popular (especially in our region) idea of Silesian mega-city – the biggest in Poland and one of the biggest in Eastern Europe metropolis. The area of Silesia City will be comparable to London! This ihabited by near 3 mllion people urban area with the capital in Katowice for sure would be a perfect place for the most influential decision-makers in the market from all over the world.
If the conception is realized it would be the best impulse for economic activation of Silesia and revitalisation of post-industrial areas. So the perspectives of our future are really good...