Warsaw
Warsaw is not just the titular capital of Poland but also its
economic centre. Littered with galleries, museums and theatres, the
city is also home to the University of Warsaw which has come to be
recognised as a leading academic institute across the continent.
One of the fastest growing cities in Europe, the number of
professionals relocating to Warsaw is expected to double by 2010.
GDP in the city is increasing at a rate up to four times faster
than throughout the rest of the country, boasting GDP per capita
more than 75% of the European average. There are indications that
prices in the city centre may have topped out, but interest in the
suburbs is still strong. Rental yields here stand at approximately
6%. Warsaw still reigns supreme when it comes to market standards
and offers some of the best investment opportunities combining the
lowest risks with good returns.
Krakow
Krakow attracts interest because of its place on the UNESCO
world heritage list and status as a favourite weekend break and
inter-rail destination. In terms of tourism, the city draws in huge
numbers, however in terms of property, although it was tipped as
the property hotspot for 2007, Krakow is actually the hardest city
in Poland to get building permission and the returns are not as
strong as in Warsaw. However if you had bought several years ago
you would have made impressive gains – according to the Royal
Institute of Chartered Surveyors' survey of capital growth in 26
European cities, Krakow came out on top with a virtual 100%
increase from 2006.
Gdansk
Alongside Poland's large commercial cities, smaller
municipalities are beginning to materialise as important investment
destinations enjoying fairly stable growth of around 15% per annum.
Gdansk (German Danzig) set on the Baltic Coast and surrounded by
good beaches was the best performer in 2005. As the country's
principal seaport and industrial centre, Gdansk functions as a
crossroads for trade routes from Germany to the East and its
industry is largely based around shipbuilding and chemical
production. It also has a charming Old Town painstakingly
reconstructed after the Second World War which helps boost the
city's tourist appeal. Cheap flights are now available from London
to Gdansk international airport and a 40% increase in passenger
count was recorded from January 04 through to January 05 – a trend
that is set to continue. Indeed, tourism has been growing by an
average of 20% per year.
Prices here are some of the cheapest in Poland, a third of
prices in Lodz, Wroclaw and Krakow and half of prices in Warsaw. 1
bedroom apartments are available from £50k including VAT, and
rental yields are currently very high ranging from 8%-11%. With
large government and municipal expenditure developing the Tri-City
rail and road networks and the Special Economic Zone of
Sopot to attract business and the very highest levels of education,
Gdansk should continue to attract multi-national companies and pose
as a strong investment hub in the future. There is however a lack
of suitable accommodation for visitors as the city's few hotels are
aimed at business travellers making them overpriced for tourists.
80% of buyers in this area are locals so the property industry has
a long term health. The student population in Gdansk is especially
large meaning rental demand is high and investing in buy to let is
a growing market. Low property prices and demand for tourist
accommodation mean strong yields are achievable, making Gdansk an
attractive place to invest.
Zakopane
Located in southern Poland against the Tatras Mountains,
Zakopane is Poland's premier ski resort attracting 2.5 million
visitors a year. With good access to Poprad airport across the
Slovakian border and the proposal for a new motorway intersection
linking Zakopane and Krakow airport, transfer times should soon be
reduced to only one hour. Budget flights now fly into both Poprad
and Krakow Airports from the UK meaning flight costs are pleasingly
low.
Thanks to the area's varied leisure activities, Zakopane caters
for both the summer and winter tourist seasons giving a rental
window of around eight months each year. Holiday homes in Zakopane
are currently most popular amongst the Polish meaning the value of
property has remained steady and affordable. 1 bedroom apartments
in the Zakopane resort are available from £45,000 +VAT (7% of
property value) and 2 bed apartments from £50,000. Outside the
resort, new developments are being sold for £77,000 including VAT
with estimated rental yields of 5%, whilst yields in the resort are
between 7 and 9%. € mortgages are available locally
although foreign investors need a permit to buy here.
Lodz
Set against the stunning Sulejowskie and Jeziorsko lakes, Lodz
is the fastest growing second tier city in Poland experiencing 4.1%
growth per month. With good transport links and a growing economy,
the city is a regenerating manufacturing base offering attractive
property investments. Capital appreciation was expected to be
between 25%-50% in 2007 and GDP predicted at 6% for them same year.
During the first four months of 2007 property prices in Lodz rose
by 16%. Property prices are still relatively low compared to cities
such as Warsaw and Krakow with 1 bedroom apartments available on
average from between £10,000 to £15,000 less than Warsaw prices.
Loft style apartments in renovated warehouses have been popular
amongst foreign investors costing approximately £35,000 for a 1 bed
in a good area. Commutes to Warsaw take only 45 minutes thanks to a
new high speed train link and direct flights from budget airline
Ryan Air now fly into Lodz airport from the UK. Buy to let is not
yet a largely profitable sector but has the potential to develop
thanks to the growing number of people moving to Lodz to work. As a
result, rental yields of between 8%-9% are reportedly
achievable.
Wroclaw
Perched on the Odra River, Wroclaw is situated between Prague,
Warsaw and Berlin close to both Germany and the Czech Republic.
Thanks to the construction of a new multi million pound airport
aimed for completion in 2009, the city's prominence and investment
potential should steadily develop. Budget airline Ryan Air has
already expressed an interest in making Wroclaw their main Eastern
and Central European base. With a GDP per capita more than 45%
above the national average and capital appreciation reaching 20% in
2006, Wroclaw is one to watch.
Katowice
Known as Poland's Sleeping Giant, Katowice, although a wealthy
mining city, has property prices significantly lower than similar
industrial cities such as Lodz. With 3 million permanent residents,
Katowice is the most urban and industrial city in Poland. It has an
impressive infrastructure and a large and dynamic work force
creating a thirst for quality residential property. The current
quality of housing is poor and housing stock is ageing, meaning the
demand for new modern apartments is high thanks to the high
purchasing power of young residents working for large companies in
the area. There has been a significant price rise recently which
may be the start of a trend. Some experts have said
prices were expected to increase by 30-40% over 2007.
Top