Published on 13 March 2006 at 12:41 pm
Filed in Property News for Poland » Poland’s Property Market Setting an Excellent Example
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.
Poland’s property market is currently setting such an excellent example because it consistently ranks in the top three countries in the CEE region for commercial property development and investment as well in the top three in terms of the volume of investment its property market receives annually.
According to extensive research recently concluded by Cushman and Wakefield global real estate solution providers, Poland has the number three most successful commercial property market of all European emerging nations, and in 2005 Poland together with Hungary and the Czech Republic shared over 97% of all the international investment made into property markets in the Central and Eastern European region.
The yields that Polish office and retail space are offering investors has led to a steady and sustained inward flow of institutional investment and led to the creation of some exciting and innovative new developments in Warsaw, Krakow, Poznan and Wroclaw. The Polish economy has been significantly boosted by the success of its property market and the Polish government is committed to attracting sustained and sustainable levels of inward foreign direct investment into many areas of its economy including the thriving property sector.
The main focus for developers and investors is the commercial side of the property market in Poland because it is a country attracting an ever increasing commitment from international business; as a result the demand for prime office and well located industrial space in Poland is rising and yields are consequently increasing. Because the Polish government have so far been incredibly successful in their resolve to attract horizontal and sustainable foreign direct investment their economy has strengthened and as the Polish economy grows and personal purchasing power increases, so there has also been a significant boom in the retail sector in Poland which has created a new range of opportunities for international property investors. Now developments such as the exciting and innovative Warsaw Zlote Tarasy multi-use mall (pictured, under construction) is offering those institutional and private investors interested in the retail investment property market in Poland brand new opportunities to explore which should result in an even more prosperous property market in Poland for 2006 and beyond.
In 2006 analysts forecast growth in GDP in Poland reaching around 4.4% which will ensure Poland remains one of the most dynamic countries in Central and Eastern Europe, a position it deserves since it has attracted in excess of 70 billion euros in inward foreign direct investment since the early 1990’s, 3.4 billion of which it managed to attract in 2005 alone.
