Poland
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Investment
Poland is a recent newcomer to the EU and the property market for overseas investors. Previous to Polands accession to the EU in mid 2004 it is likely that the country would have been overlooked by would be property investors. This is no longer the case as the Polish economy looks set to boom which theoretically should lead to increased property pricing. Last year Poland posted a GDP growth rate of 5.8% and property prices increased by 10-20%.
Many of the highest property increases are currently occuring in the Gdansk region situated on the North Sea coast. Gdansk is built around a port and is reminiscent of Amsterdam with their narrow canals and canal side properties. Investment potential in Gdansk is high due to low cost airlines introducing routes into Gdansk. It is possible to fly to Gdansk from the UK in less than 3 hours and pay as little as £5 one way including taxes. Similarly, there are low cost airlines targeting the Lodz area which is approximately 75 miles from the Polish capital Warsaw. Again, this could be highlighted as an area for investment potential.
Poland is due to receive a large subsidy ($13.5 billion) from the EU in order to improve the countries intrastructure and foreign investors are being actively encouraged to invest in Polish property. Incentives include a lack of Capital Gains Tax if a property is held for more than 5 years. A surge in property investment is expected in Poland because it has been announced that the standard VAT on property of 7% will be increased to 22% in January 2008. This will likely mean many shrewd investors will attempt to complete their purchases prior to this date and the local economy will receive a large short term boost.
Prices for house purchases in the three strongest candidates for property investment in Poland are as follows:
Warsaw
105,000 for a 2 bedroom property
163,000 for a 3 bedroom property
215,000 for a 4 bedroom property
Krakow
133,000 for a 2 bedroom property
155,000 for a 3 bedroom property
192,000 for a 4 bedroom property
Gdansk
78,000 for a 2 bedroom property
126,000 for a 3 bedroom property
153,000 for a 4 bedroom property
Prices for apartment purchases in the three strongest candidates for property investment in Poland are as follows:
Warsaw
67,000 for a 1 bedroom property
99,000 for a 2 bedroom property
203,000 for a 3 bedroom property,
Krakow
67,000 for a 1 bedroom property
129,000 for a 2 bedroom property
153,500 for a 3 bedroom property
Gdansk
45,000 for a 1 bedroom property
62,000 for a 2 bedroom property
107,000 for a 3 bedroom property
Prices for weekly property letting in the three strongest candidates for property investment in Poland are as follows:
Warsaw
430 for a 1 bedroom property
640 for a 2 bedroom property
918 for a 3 bedroom property
Krakow
450 for a 1 bedroom property
535 for a 2 bedroom property
600 for a 3 bedroom property
Gdansk
300 for a 1 bedroom property
375 for a 2 bedroom property
515 for a 3 bedroom property