So you rent a place for 25 years, then what? You have what exactly?
Over the span of years 2002-2008 real estate prices in Poland have increased drastically. Between June 2006 and June 2007 alone the average price of a square metre in Warsaw rose from 6,683 PLN (1,636 EUR) to 9,540 PLN (2,519 EUR) (over 50% rise in euro terms).
According to a major Polish newspaper, Gazeta Wyborcza, the average monthly salary in Warsaw buys 0.26 m2, or in Kraków 0.22 m2.
Same sources give rental profitability at 4% yearly. This is lower than interest rates on bank deposits (5% in Polbank etc.).
In early 2007 the Polish property market began to show early signs of a property bubble; these included:
banks increasing loan periods from 30 to 50 years to extend credit limits;
over 1 million families already in debt, and roughly 300,000 more going in debt every year;
increasing interest rates - analysts predict 6% by the end of 2007 (from less than 4% in 2006);
number of new apartments for sale in Warsaw at one of the oldest Polish real estate portals: tabelaofert.pl increased from around 1,750 in November 2006 to over 4,300 in June 2007 to over 11,000 in July 2008;
exotic companies declaring real estate development plans;
Polish economy showing signs of the overheating: from 2005 to 2007 the forex deficit almost tripled (it had been decreasing in previous years); imports, which were decreasing (by 5%) in 2005, jumped to a 25% increase in 2007;
stagnation of prices and dramatic drop of sales in a long period of time with dynamically increasing supply of residential properties.