Investment Property in Poland a Good Choice in 2007

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.

For investors looking at the residential property market in Poland there are a number of opportunities available to them to explore.  Firstly home ownership in Poland is quite low at the moment and as the population slowly becomes more affluent as GDP increases and unemployment figures drop, so the number of Poles wanting to buy their own home has gone up in direct proportion. 

As the Polish government is directly committed to increasing GDP further and improving the living standards of its citizens, it’s fair to say that over the medium term demand for property for sale from the local population will increase and this will push up property prices suggesting that an investor who buys now and holds stock for the medium term should reap returns in terms of healthy capital growth.

To fuel this local buying demand there’s good availability of mortgage finance in Poland; to date the mortgage market has not been overly exploited and this means there remains strong lending potential which in turn means that those who want to buy can afford to do so.  This should give an investor even more long term confidence in the Polish residential property market.

There is currently a very strong rental demand for accommodation that is actually surging in cities like Krakow and Warsaw where good employment opportunities exist.  These cities are witnessing unprecedented levels of inward local migration as people move from outer lying areas to get work in the cities.  This means demand for accommodation exists and an investor can achieve decent rental yields in Poland at the moment which will likely increase in 2007.

Another angle to approach is letting to students and/or tourists and a great location to look for suitable real estate is Gdansk or rather the Tricity which is a large urban area on the coast in Northern Poland that incorporates the cities of Gdansk, Gdynia and Sopot.  There’s a large student population seeking rental accommodation in this area and as the Tricity becomes better known across Europe as a fantastic place to holiday and shop so it’s developing a good level of tourism traffic. 

In 2007 more airlines are scheduled to begin flights to Gdansk which is already serviced by cheap flight operators from the likes of UK – this will increase tourism traffic greatly and some are suggesting it will mean the area becomes a location targeted by those seeking a weekend retreat.  The Tricity has had major infrastructure improvements made in recent years with more such as an airport expansion still in the planning stages, and going in to 2007 demand for property in this location is actually beginning to outstrip supply. 

In the first four months of 2006 alone – even before demand began to peak in this area of Poland - property prices rose by 13% and in terms of rental yields achievable, because there is both student and tourism demand the short term yields achievable can be as much as 15 – 18% making Gdansk and the greater region around it a really good focus for investors in 2007.

In terms of commercial property investment in Poland, directly held retail stock in urban areas is returning impressive profits at the moment and there are a number of European funds that actually offer commercial property in Poland as part of an overall commercial property portfolio meaning that all areas of the Polish property market where there is room for profit are open to investors in 2007.

Special Reports: Property News for Poland

Poland for Property Investors
Poland's attraction for property investors is massive with low risk, high growth potential the norm particularly in Warsaw and Krakow.

Poland Investment Property Buying Guide
The property buying process in Poland benefits from transparency and sophisticated land registry systems making buying property in Poland straightforward

Poland Property Investment Guide
Poland is an incredibly successful transitional country offering a property investor substantial long term potential for investment growth and yield