According to the Royal Institution of Chartered Surveyors’ European Housing Review, average property prices rose by 33% in Poland in 2006 and 28% in 2005 proving that Poland has been returning more than favourable capital appreciation for investors - but can Poland continue to deliver property price appreciation?
At Amberlamb we can confirm that Poland’s property market is one of the most dynamic in the Central and Eastern European region right at the moment, that it has been particularly attractive since 2004 and that there is still room for significant growth in underlying property prices despite certain areas of the country such as Krakow having witnessed over 50% gains last year.
Poland has achieved so much in economic and political terms since it joined the European Union back in 2004 and its transitional economy is heralded by many as being a great success; furthermore Poland is one of the most successful emerging countries in the world at attracting and retaining foreign direct investment commitment.
Poland does still have a long way to go to prevent its currency the zloty from over appreciating, to further reduce unemployment levels and to create a fair taxation system that will prevent tax avoidance - but looking to the future the investment climate in Poland is absolutely ripe for market entry and investment property in Poland will be a good choice in 2007.
Despite warnings that Poland’s property market was losing its heat and waning as an emerging area of intense interest for overseas property investors, Poland is actually continuing to deliver significant returns on investment in the form of both capital growth and rental yield.
Some industry analysts are suggesting that a certain amount of property investment appeal has been drained from the Polish real estate market now that the country is a fully fledged member of the EU and the initial boost of investment that the country received following accession has dwindled away.
The attraction of investment property in Poland as an asset class has been enhanced dramatically in recent weeks by the announcement that the Polish government are to invest billions of Euros into mammoth infrastructure and environmental projects to further improve the prospects for their country’s rapidly expanding economy.
Poland is the perfect host country for this year’s Central Europe Property and Investment Fair because its property market is one of the most dynamic in the Central and Eastern European (CEE) region – a region that is experiencing an unprecedented rise in demand for residential and commercial properties from international investors.
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