A Guide to Property Investment Poland

Photo courtesy of hegarty_david 

From the beautiful Carpathian mountains to the balmy Baltic Sea shores, Poland is a country that is working hard to forge a new future for itself.  With a growing economy and high tourist demand, Poland’s outlook is more than bright.

Poland’s stable political environment, growing housing market and relations with other European countries all make it an attractive choice for investors.  We at Nubricks.com cite the following 10 reasons driving investor confidence in Poland at the present: -

1) Poland’s Stable Political Climate Inspires Investor Confidence in the Nation’s Real Estate Market

Poland has had more than its fair share of strife in the past.  Whilst the country was once lorded over by Russia and then Germany, it has stood on its own as independent since the 1990s.  Operating with a democratic system, Poland has since been able to establish itself as a stable, progressive-thinking country.  Even as growth and reforms are still under way, Poland has gained footing with its European neighbours and the rest of the world.  The stable political climate here inspires investor confidence in their purchases.

2) European Union Status Helps Investors in Poland Feel Confident in Their Purchases

Poland’s 2004 accession to the European Union has opened doors for this country and the rest of Europe.  Since its acceptance, access to Poland has become very easy for EU citizens and the country’s overall stability has improved greatly.  As Poland’s star continues to rise on the worldwide front, the EU membership is helping investors feel more connected to not only the country, but also their investments in Polish property.

3) Poland’s Standing in the Worldwide Community Inspires International Real Estate Based Confidence

Poland’s standing with its neighbours and the worldwide community is quite good.  Relations with the UK are described as “excellent.”  A member of NATO, the UN and the EU, the country is taking part in international affairs and working to bridge differences between the east and the west.  Poland’s efforts to maintain and build strong ties with the worldwide community inspires investor confidence in this country’s ability to maintain healthy relations and sustain and improve on its present growth.

4) Economic Growth is Making Poland Very Attractive for Property Investors

Poland’s economic stability is very attractive for investors who prefer sound markets.  With a current real estate boom ongoing and a solid US $438 billion GDP, Poland’s economy is more than holding its own.  Annual growth falls in around 5.4%, which far outstrips the 1.3% inflation rate.  Whilst unemployment is a bit high in Poland, the current growth in the market is likely to remedy the numbers soon.  The country’s economy is driven by mining, chemicals, tourism and chemical processing, among other activities.

5) Growing Tourism Industry Proves Beneficial for Many Types of Property Investor Strategy in Poland

With its beautiful mountains, pristine lakes and gorgeous Baltic Sea coastline, Poland is a very hot tourism spot.  Add to this the fact the country has some incredible historical sites to explore, and the reasons why tourists are finding Poland to their liking becomes quite clear.  The World Travel & Tourism Council estimates Polish tourism will have a USD 43 billion impact on the country in 2007.  Demands for travel are expected to rise by at least 4% per annum through 2017.  From Warsaw and Krakow to Sopot, the number of things to do in Poland makes holidaymaking in the nation a pleasure.  The growing tourist demand bodes very well for investors who want to look at second home potential and buy-to-let properties.

6) Poland’s Growing Domestic Housing Demands Bode Very Well for Investors

Price Waterhouse Coopers and other financial experts call Poland one of the most attractive markets in all of Europe at the moment.  With an estimated 1.5 million unit shortage in the apartment market, demand well outstrips supply.  Whilst prices are on the rise in Poland, buyers will still find very good deals when compared to other parts of Europe.  The high domestic demand in the market at present, coupled with the growing tourism industry makes Poland very promising for investments in real estate.

7) Poland’s Climate and Geography Make the Country Very Attractive for Holidaymakers and Property Investors Alike

Many people believe that Poland has some of the most beautiful geography in the world.  With its five distinct geographical regions, Poland offers a landscape suitable for almost anyone.  The country’s territory includes a nice expanse of Baltic seafront, plains, lake districts, a stretch of desert and even mountainous areas.  In the south, Poland is graced with the majesty of both the Tatra and Carpathian mountain ranges.  The climate is typically described as temperate.  Whilst summers are quite warm, winters tend to be cold, but not impossibly so in most years.  Poland’s geography and climate make the country very attractive for holidaymakers and investors alike.  The diversity tends to appeal to those with very distinct tastes.

8) Favourable Exchange Rates Attracts Foreign Property Investors

Poland’s exchange rate with the British pound is very favourable.  A single pound is worth about five zloty.  This means British citizens will find their money spends quite well in the Polish real estate market.  Add to this the fact that the cost of living is quite low when compared to the UK and investing in Poland is very attractive indeed.  The financials involved make the prospect good for buy-to-let and resale return investors alike.

9) Easy Access Makes Polish Property Very Attractive for Buyers and Holidaymakers

Poland is readily accessible by citizens of the EU.  The entry requirements are quite easy to meet and travel to Poland is a breeze.  Most of the UK’s major airports offer low-cost flights right to the biggest airports in Poland.  This is very attractive for investors looking at second homes, buy-to-let potential and even resale purchases.

10)  High Demands and Easy Buying Process Attract Property Investors in Droves

The demand for housing is very high in Poland at present.  As stated above, according to a report published by Price Waterhouse Coppers in 2007, there is a shortage of about 1.5 million apartments in the country.   The financial giant calls Poland one of the most promising residential markets in the whole of Europe at the moment.  Whilst construction is ongoing all over the country, investors are still finding rather reasonable deals on off-plan buys and existing properties.  The demands of both local citizens and holidaymakers combine to make Poland very attractive for buyers looking at growth potential and investment returns.  Whilst Poland does offer slightly higher prices than other regions at present, the positive nature of the market makes them very attractive.  It is possible to buy off-plan still for well under GBP 50,000.  The buying process in Poland is also very straightforward and tax laws are quite favourable, as well.  Resale taxes are set at 10% if the property is sold within the first five years.  If the money is reinvested in Polish property however, the tax can be avoided.

As one of Europe’s most promising residential investment markets, Poland is showing that it has risen from the ashes of its tragic past to create a new future for itself.  The booming real estate market and growing tourism demands make this country one that investors are taking notice of.