Poland, as the largest of the 10 new Countries that joined the EU in 2004, stands out as offering significant growth opportunities for overseas property investors. A recent Channel 4 programme cited Poland as being one of the best places to make money from property investment in all of Europe!
EU membership removed the obstacles that previously prevented foreigners from purchasing property there. In addition, EU funding will generate significant impetus to the development of the economy, as Poland seeks to establish itself as one of the major players in the expanded EU.
Poland has focused on economic liberalisation and with membership of the EU, the key economic challenge now is to align the economy to the strict economic criteria for entry into the European Single Currency zone which may be feasible from around 2010. In the meantime, property prices are likely to be influenced by improving economic circumstances, the prospect of joining the Euro zone and increasing demand for quality housing in the major cities by the Poles and expatriates alike
Many cities such as Warsaw and Krakow have ambitious development plans to cope with the increased demand, particularly among the young population, for affordable but quality new build developments. With Warsaw’s population forecast to double by 2010, demand for such property is increasing and property prices in Warsaw have experienced significant growth over the past two years.
Many International Companies have been attracted to Warsaw by the educated workforce and lower overheads associated with running offices or Companies there. These Companies and the growing population are fuelling the need for quality residential accommodation. Demand for premium residential apartments is likely to remain high for the foreseeable future, providing significant opportunities for the investor interested in the buy-to-let market.
Some forecasts suggest that property prices may double in some areas of Warsaw over the next five years, and this coupled with the prospect of excellent rental returns make for an opportunity not to be missed for the overseas property investor.
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