Real Estate – An Alternative to Traditional Forms of Capital Allocation in the Era of Low Interest Rates in Poland? (Nieruchomosc – alternatywa dla tradycyjnych form alokacji kapitalu w dobie niskich stop procentowych w Polsce?)

The improvement of the financial situation of households over the last years has led to an improvement in their quality of life. From 2005, the level of net assets of households recorded significant increases, reaching a record level of PLN 1953.7 billion in 2017. Households that had thus far mostly deposited their savings in bank deposits and savings accounts sought alternatives because in the era of persistent low interest rates this form of saving became unprofitable. The article points to the trend over the years to invest savings through the purchase of real estate (mainly housing), in many cases for rent. The article presents the scale of these activities and issues related to this type of investment, and discusses why real estate investments should not be considered a substitute for existing forms of saving on the market.