How a German Investor Profited 16% Annually with a Dual-Purpose Apartment in Gdańsk

Introduction:
At Invepro, we take pride in helping our clients maximize their returns through smart real estate investments. In this case study, we’ll explore the success story of a German investor who purchased a dual-purpose apartment in Gdańsk's Old Town. By leveraging short-term rentals and enjoying personal use, the investor secured a remarkable 16% annual return on investment.

Table of Contents:

1. Investor’s Background

2. Property Details and Purchase Decision

3. Financial Benefits Breakdown

4. Short-Term Rental Income

5. Property Value Appreciation and Long-Term Returns

6. Conclusion: A Smart Dual-Purpose Investment Strategy
   
   

1. Investor’s Background

The investor, a German national with a keen interest in the Polish real estate market, saw the potential in Gdańsk as both a tourist destination and a business hub. With regular visits to Poland, they wanted a property that could serve both personal and investment purposes. This case highlights how combining personal use with short-term rentals can result in significant returns.

2. Property Details and Purchase Decision

The investor purchased a 49 m², 2-bedroom apartment in Gdańsk’s Old Town, located on Stara Stocznia Street, for 1,680,000 PLN. The apartment was fully furnished and equipped for short-term rentals, making it a perfect dual-purpose property—both an investment and a second home. The prime location and quality finishes ensured the apartment was ready to generate rental income immediately.

3. Financial Benefits Breakdown

Thanks to purchasing through Invepro, the investor saved 2% on the PCC tax, resulting in an immediate saving of 33,600 PLN. This exemption is a significant benefit for property buyers looking to invest in Poland’s primary real estate market.

Additionally, the investor enjoys full access to rental data and receives monthly reports and payments from short-term rental operations, ensuring transparency and ease of management.

4. Short-Term Rental Income

Over the course of the year, the apartment is expected to generate 70,000 PLN from short-term rentals. With Gdańsk being a highly attractive destination for both tourists and business travelers, the demand for rental properties remains strong, ensuring steady income for the investor.

When the investor wishes to use the property personally, they can easily reserve time for their own stays, blending convenience with profitability.

5. Property Value Appreciation and Long-Term Returns

In addition to rental income, the value of the apartment is projected to increase by an average of 10-15% per year, adding an estimated 200,000 PLN in property appreciation annually. This makes the investment even more lucrative over time, as Gdańsk continues to grow as a hotspot for real estate.

In total, the annual return on investment includes:

• 70,000 PLN (rental income)

• 200,000 PLN (property value appreciation)

Together, this adds up to 270,000 PLN per year, equating to a 16% annual return.

6. Conclusion: A Smart Dual-Purpose Investment Strategy

This case study demonstrates the power of combining personal use and short-term rental income in a growing market like Gdańsk. The investor was able to generate significant rental income while enjoying their property for personal stays. With a 16% annual return, this strategy proves that smart investments can yield strong financial rewards while offering flexibility for personal use.

Want to explore similar investment opportunities?
Contact us today to learn how you can benefit from Poland’s dynamic real estate market.