Krakow Real Estate Market status - Current and Prospective

[Scott103]

Hi, I am a foreigner currently living in another city in Poland, and will be moving to Krakow for another job soon.

Financially, accommodation takes the largest slice from my budget. So I am thinking the option to . my family apartment to live in during my time in Krakow.

I am not seeing it as an investment. All I expect is to get my down-payment amount back when the time comes and I'll have to sell it, and not to have paid much more than what I would pay to landlord if I had rented.

To make it even more complicated, my calculations are based on EUR, so the performance of PLN is equally important.

When I first came in Poland, I thought of the same and discussed with my manager and with an economy student working in a bank. Both said, "ohh this is crazy times, dont do it! There is bubble in housing market. Too expensive".

Now looking back, if I had done it two years ago, and sell now, at worst selling rate I would still be in profit (not adjusted for interest rate changes and credit closure costs). Even if was in loss, say a couple of months rent, I would have lived in my own house so I could accept it.

The question is, although I know noone can guess the future, how do you think the market would look like in say 3 - 5 years? Any particular area to target where the price-falling-risk would be lower?

I will definitely consult to professionals when things get serious. But I would like to hear the comments from locals and foreigners who went through same.

Thanks.