Massive investment from it’s entry to the European Union (May 2004) and a steadily growing economy has made Poland one of the worlds hottest place to invest in property.
Poland is the sixth largest county in Europe in terms of size and population, and by far the largest country to recently join the EU. Poland today has a thriving private sector which created more than 300,000 new jobs during 2006 alone. GDP per capita roughly equals that of the three Baltic States. Consumer price inflation - at 1.3% in 2006 - remains among the lowest in the EU. Since 2004, EU membership and access to EU structural funds has provided a major boost to the economy. Inflows of direct foreign investment exceeded $10 billion in 2006 alone - and more than $100 billion since 1990 - with major investments being announced by foreign firms in computer, consumer electronics, and automobile component production. In early 2006, Poland reached agreement with its EU partners that will permit it to benefit from EU funds totalling nearly $80 billion during 2007-13. Since 2002, even though the zloty appreciated 30%, Poland's exports more than doubled (source CIA World Fact Book).
Other reasons behind the strengthening of the Polish property market are the growing availability of mortgages and the decline in the availability of premium building plots. The practise of property ownership is still in it infancy. It was only 12 years ago that Poland was a communist country. As the economy continues to show growth and as the Poles adapt a more westernised attitude, the popularity of borrowing will increase. This will create considerable internal buying power pushing up market prices. This growth of the market coupled with the finite prime land available is predicted to cause a short fall, raising the prices even higher.
A Department of Investment and Real Estate report from the University of Lodz stated “as demand for all types of property is likely to rise, the knock-on effect will benefit real estate rental growth, investment opportunities, and development prospects.” Geography Currency Capital City Population Major Airports |
