Published on 19 April 2006 at 05:28 pm
Filed in Property News for Poland » Investment Property in Poland Enhancement
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.
Already the announcement has paid dividends with Scandinavian Radisson SAS Hotels and Resorts committing substantial investment to the development of a state of the art business hotel and conference centre in Poznan…further testament to the rapidity of Poland’s economic expansion if any were needed.
For property investors the development of Poland as a strong European economic player improves the prospects for the profitability of real estate assets held particularly in the industrial and commercial sector. Furthermore the announcement that twenty one billion Euros will be spent on directly improving the infrastructure, general accessibility and environment across Poland adds to the value of property assets held in the tourism and residential sectors as well.
Of the twenty one billion dollars allocated to Poland by the EU Structural and Cohesion Fund, eight billion will go on road development and improvement and will open up much of the Eastern Poland region to investors. Air, sea and rail links will also be improved which will open up the country physically to tourism and investment and allow Poland to trade more freely which will boost its economic development over the medium term.
The massive investment will begin in 2007 with the projects announced expected to take until 2013 to complete. Property investors have not been slow in appreciating what this level of investment means for Poland – with development and improvement comes a greater flow of inward foreign direct investment which in turn can push up demand for real estate assets.
The announcement by Scandinavian Radisson SAS Hotels and Resorts that they are now to build their sixth hotel development in Poland is another plus point for investors looking at the level of demand in Poland for various types of accommodation from residential to office to industrial to tourism. Demand for investment property in Poland has already increased substantially since the country joined the EU back in 2004. Furthermore the country’s profile has been boosted so sufficiently that visitor numbers from the UK alone were up 85% last year according to the Civil Aviation Authority who announced that flight routes to Poland from major UK airports expanded dramatically in 2005.
All in all things are heating up in terms of Poland’s economic expansion which bodes well for the whole investment property market.
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