Poland

Active: No current developments active

Recent: Sapphire Avenue

Investment Overview
Poland is an investors dream - a huge and growing demand for city property and severe undersupply. There a few restrictions on foreign ownership and the tax regime is favourable when property is held for two or more years.

It is worth noting that, of the ten countries that joined the EU in 2004, Poland represents over 50% of the increased EU population.

From a business perspective, it is ideally located between Russia and the Baltic States and Germany. This coupled with low tax regimes is drawing in huge amounts of Foreign Direct Investment.

At a Glance
Capital         Warsaw
Population    38.6 Million
GDP/Capita   €3,502
Currency      Zloty (PLN)
Language     Polish

Ideally Located
Poland’s central location between Eastern and Western Europe, between Russia and Germany, has historically been a significant disadvantage to the country. Nowadays its location can be viewed as a huge advantage, as a bridge between these two major economies.

Massive Economy
With GDP at €195.3 billion (five per cent growth in 2005) Poland ranked tenth among EU countries in terms of GDP volume in 2004. As a result Poland is regarded as a market with vast potential for development: indeed, the largest market of all the new member-states.

In reality, the GDP in major cities such as Warsaw is growing at up to 20 per cent.

Migration to Cities
Currently 63 per cent of the Polish population live in urban areas, compared with an average of 74.4 per cent throughout Europe. Warsaw's population of two million is currently extremely low for a country with a population of 38 million.

As a result there is currently a significant transition occurring in Poland, involving migration from outlying agricultural and rural areas to the major urban centres of Warsaw, Krakow, Wroklaw and Poznan, where the major investment and economic improvements are taking effect. This migration is further driving rental demand and capital growth in these major Polish cities.

Thriving Mortgage Market
Low interest rates are further stimulating property demand and growth. According to the EBRD, the creation of a thriving mortgage market is a key contributor to the sustainable growth of the Polish middle class; this in turn is a vital factor in the growth of the property market. The volume of mortgage loans has doubled over the last three years.

With rates of seven to eight per cent when pegged to the local currency the zloty, and three to five per cent when pegged to the euro, Poles took out over €4 billion-worth of home loans in 2004.

Long-Term Growth
With a strong economy continuing to flourish into 2006, and relatively inexpensive mortgages readily available from many commercial banks for those with jobs, Poland’s residential property market is entering a boom phase

Return to Emerging markets

Back to Top