As the largest of the 10 new Countries that joined the EU in 2004, Poland stands out as offering significant growth opportunities for property investors.
As yet, Poland is relatively “undiscovered” but is considered to be one of the best places for property investment in the whole of Europe.
Think Eastern Europe property investment and you may normally think of countries such as Czech or Hungary. You’re right but you should also be thinking of Poland!
Residential property in prime areas in cities such as Warsaw offers the investor both the opportunity for a steady rental income AND significant capital appreciation.
While property prices in some of the larger cities have doubled over the past few years, prices are continuing to increase by over 10% pa. Warsaw in particular has seen strong growth and developments in prime areas of the city are much in demand and will continue to be so.
BUT…..
The challenge is to select property that offers such potential and Xact Property can assist.
Firstly, let’s look at why you should consider Poland – and indeed Warsaw – as part of your portfolio.
With a population of over 38 million and a growing liberalised economy following EU entry, Poland is set to be the powerhouse of Eastern Europe. (Compare this to Czech with a population of only 10m and this gives you an idea of Poland’s size)!
GDP/ capita is circa $12,000 (2005). Again compare this to Czech GDP $18,000 (2005) and you can see that Poland has a lot of catching up to do!
EU membership removed the obstacles that previously prevented foreigners from purchasing property there.
Massive EU funding is generating significant impetus to the development of the economy, as Poland seeks to establish itself as one of the major players in the expanded EU.
Economic growth at circa 5.5 % in 2004 and 3.3% in 2005, is among the higher growth rates in the expanded EU and well above the EU average as a whole.
The population of Warsaw is growing rapidly, so demand for affordable but quality housing will remain high. (Since 1999 the population grew from 1.6m to well over 2.0m by 2005).
Demand for residential property is increasing and in many areas, demand outstrips supply.
In Warsaw property prices have doubled over the past two years and may double again over the next few years.
For investors, new build properties are free of tax, if held for five years!
Demand for quality housing is rising
Many International Companies have been attracted to Warsaw by the educated workforce and lower overheads associated with running offices or Companies there. With more Poles and expatriates being attracted to the city, 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.
A further point is that there is the possibility that VAT on property purchases may increase from 7% to 22% in January 2008. Obviously, if this happens, this will push up completions in advance of this date, providing a further boost to property investors.
Warsaw investment opportunity
Xact Property offers a number of exclusive new build developments in the best locations of Warsaw. These offer the investor the opportunity to benefit from longer term rentals AND the anticipated rise in equity.
So, if you are considering investing in property overseas, Poland has to be part of your portfolio!
Contact us now for more information on the developments we offer in Warsaw.
Email: Poland@xactproperty.com or visit the Xact Property website now…….
Xact Property Limited
First Floor East
Fountain House
Great Cornbow
Halesowen
West Midlands
B63 3BL
Tel: +44 (0) 121 504 4919