Investing in Poland 2025. Why Poland still attract foreign investors? 

Poland’s economic transformation over the past three decades has been nothing short of remarkable. Once among the poorest economies in Europe, it has emerged as a dynamic, open market with robust growth, stable institutions, and a strategic location at the heart of the continent.

This convergence of factors has propelled Poland into the ranks of the world’s top 20 economies by nominal GDP—a milestone officially reached in July 2025 when Poland surpassed Switzerland to claim the 20th spot globally.

For foreign investors seeking a combination of growth potential, market depth, and diversification, Poland offers a compelling proposition across multiple asset classes, notably real estate and capital markets.
A Top-20 Economy with Sustained Growth. According to the International Monetary Fund (IMF) and corroborated by leading local analyses, Poland’s nominal GDP in 2025 is just under $1 trillion, placing it firmly at 20th worldwide.

This ascent reflects decades of continuous expansion: between 1995 and 2024, Poland’s GDP per capita rose by over 300%, outpacing many of its Central European peers
Poland Accounting In the World Economic Outlook published in April 2025, the IMF forecasts GDP growth of approximately 3.2–3.4% for Poland in both 2025 and 2026—well above the EU average and among the fastest rates in the block.
Such resilience stems from diversified drivers: robust domestic demand, export-oriented manufacturing, and a burgeoning services sector.

Real Estate: A Market on the Rise

One of the most visible manifestations of Poland’s economic dynamism is its real estate sector. Residential property prices have surged by roughly 14.4% year-on-year as of June 2025, with capital cities like Warsaw averaging PLN 16 459 per square meter for established homes and even higher for new developments.
Underlying this growth is a chronic housing shortfall—estimated between 1.5 and 2.2 million units nationwide—which keeps demand persistently strong despite rising mortgage rates. Meanwhile, international institutions rank Poland as the most attractive real estate destination in Central and Eastern Europe, with “core” and “core-plus” investment strategies dominating but value-add transactions also gaining momentum.

Why real estate market is attractive for foreign investors? (double yield).

Poland’s residential real estate market—particularly at the luxury end—has rapidly gained prominence among European investors and homebuyers. Several converging trends distinguish Polish luxury housing from its peer markets and make it an unusually compelling proposition.

First, relative affordability remains a key draw. In capitals such as Warsaw or Kraków, high-end apartments and penthouses typically cost 30–50 percent less per square meter than comparable properties in London, Paris or Zurich, yet offer modern design, high-quality finishes and prime locations.

This pricing gap not only stretches purchasing power but also translates into stronger rental yields—often in the 4–6 percent range, compared with below 3 percent in many Western European cities.

Second, Poland’s luxury segment benefits from a persistent undersupply of top-tier homes. Historic city centers and riverside plots are tightly constrained, so premier developers concentrate on a handful of landmark schemes—waterfront towers, boutique villa complexes,

and signature projects by internationally renowned architects. These developments frequently include concierge services, private wellness facilities and state-of-the-art smart-home systems, matching or even surpassing the amenity standards found in more established markets.

Third, Polish macro fundamentals continue to underpin long-term value appreciation. Strong GDP growth, solid domestic consumption and growing inflows of foreign direct investment have fueled demand from both local millionaires and expatriates.

Meanwhile, political stability and full integration within the European Union provide legal and regulatory certainty—an essential comfort for international buyers accustomed to more mature markets.

Fourth, lifestyle considerations and urban regeneration have elevated Poland’s most dynamic cities. Warsaw’s revitalized Powiśle district and Kraków’s historic Old Town connection to the Vistula boulevards now host luxury residences alongside art galleries, high-end boutiques and Michelin-starred restaurants.

Meanwhile, cities like Wrocław and Gdańsk are carving out niche appeal, blending rich cultural heritage with riverside promenades, tech-driven business districts and green, family-friendly neighborhoods.

Finally, diversification into Eastern Europe has become a strategic move for global investors seeking growth beyond core Western markets. Poland’s luxury real estate offers an appealing risk-reward balance: more attractive entry prices, higher yields and robust upside potential as the country continues to climb the development rankings. Tax-efficient ownership structures and transparent transaction processes further ease cross-border investment.

In sum, Poland’s luxury residential market stands out for its blend of affordability, quality, undersupply, macro stability and dynamic urban environments—making it one of Europe’s most attractive arenas for both homeowners and investors seeking premium property opportunities.

Commercial and industrial real estate have likewise flourished. Logistics and warehousing space is in particularly high demand, driven by Poland’s role as a European distribution hub and the expansion of e-commerce. Major cities such as Wrocław and Kraków are now hotspots for modern office schemes and logistics parks, offering investors stable, long-term rental yields. The EY European Attractiveness Survey 2024 placed Poland sixth among all European real estate markets for foreign direct investment inflows, underscoring its appeal to global capital.

Capital Markets: Record-High Performance

Beyond bricks and mortar, Poland’s capital markets have recorded exceptional performance. The Warsaw Stock Exchange’s benchmark WIG index climbed over 25% year-to-date in early 2025,

briefly surpassing the symbolic 100 000-point mark in April—an all-time high appreciatewealth.com
Notes from Poland. Equity turnover is soaring: first-quarter revenue for the WSE Group hit PLN 132.3 million, up nearly 12% year on year, while full-year revenues in 2024 reached almost PLN 465 million.
With over 410 listed companies and a total market capitalization nearing PLN 1.92 trillion (approximately €410 billion) as of April 2025, the Warsaw market stands as the largest in Central and Eastern Europe
 

This bullish run has been underpinned by strong corporate earnings, attractive valuations, and rising dividend yields—features that draw both long-term

institutional investors and short-term traders seeking growth beyond traditional Western markets.

Moreover, Poland’s stable regulatory framework and proactive measures to bolster Warsaw’s status as a regional financial hub have further enhanced market confidence

Investor-Friendly Environment and EU Integration

Poland’s attraction is not limited to economic fundamentals. As a committed member of the European Union, it benefits from unfettered access to the Single Market, extensive EU structural funds, and participation in key regulatory frameworks. The legal and tax regimes are broadly aligned with EU standards, offering strong protections for foreign investors and transparent procedures for capital repatriation and dispute resolution. In recent years, the government has streamlined licensing processes and reduced bureaucratic hurdles in sectors ranging from manufacturing to real estate development, further smoothing the path for inbound investment.

Additionally, Poland’s geographic location—within 24 hours’ trucking distance to the major population centers of Western Europe—makes it a natural logistics and production base. Global corporations from automotive, electronics, and pharmaceutical industries have established

major plants here, attracted by competitive labor costs, rising productivity, and modern infrastructure.

Sectoral Opportunities and Beyond

While real estate and capital markets capture headlines, Poland’s appeal spans numerous sectors. The technology and business services industries are booming, with Warsaw and Kraków emerging as leading IT hubs in the EU.

Renewable energy projects, particularly in offshore wind and solar photovoltaics, are gaining traction as Poland transitions towards cleaner power.

Agribusiness and food processing benefit from fertile soils and long-standing traditions, while financial services continue to evolve with fintech innovation and expanding consumer credit markets.

For foreign direct investors, the mix of a young, skilled workforce, EU integration, and a resilient economic trajectory offers not just immediate returns but also positions them at the forefront of a market poised for further convergence with Western Europe.

Conclusion

Poland’s journey from transition-economy underdog to one of the world’s top 20 largest markets is a testament to sound macroeconomic stewardship, strategic EU integration, and an unwavering focus on competitiveness. Its real estate sector continues to expand—buoyed by housing deficits and commercial demand—while its capital markets achieve record highs and offer deep liquidity. Add a robust legal framework, substantial EU funding, and a prime logistical location, and it becomes clear why foreign investors—both institutional and strategic—view Poland as one of Europe’s most compelling investment destinations today. Whether through acquiring prime property, accessing emerging equities, or tapping into innovative green-tech ventures, the opportunities here are as diverse as they are promising.

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Article resources: https://notesfrompoland.com

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