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Krakow Property Is In a Pole Position
January 13, 2009Article by Ray Withers
Poland’s economy has grown from strength to strength since joining the EU in 2004. Employment is at a record low while salaries are rising on the back of EU investment, leading to more demand for housing and mortgages. Poland investment property has performed spectacularly since 2002 – reflecting the country’s new European status. Many Poles regard Krakow as a cultural centre – and besides the arts and entertainment, the city’s football stadium has made the short list for the 2012 European Tournament. With upgrading the stadium for this prestigious competition has come improvement of the local roads, railways and airport. As one of the few Polish cities not destroyed in World War 2, the historic part of the city is a UNESCO World Heritage site. This is unsurprising as most of the buildings are medieval as the war seemed to pass Krakow by – unlike many similar cities in Germany and central Europe that had their hearts ripped out by bombing and fighting. Demand for quality residential Poland property, particularly in prestigious, attractive locations, is in high demand, and Krakow follows the trend.
There is a shortage of housing due to the historic nature of many properties in the city centre and the time is takes developers to obtain planning permission.This has led to spiralling prices in the prime area of the city and created access to new areas for investment. One of these areas is Zablocie, since the Kotlarski Bridge opened connecting Zablocie to the city in 2002. Zablocie is currently undergoing revitalisation and economic development.
Zablocie is one of the only areas in Krakow to have a full master plan ensuring developers can obtain planning permission. This makes the town key for building new homes that wealthy locals are expected to want to buy. Zablocie Mill apartments are designed to blend in with the existing historical mill building, and also offer spacious interiors with a post-industrial character.
Only 15% of the total purchase price is required before completion. Mortgages of 90% loan-to-value are available with cash investments of just £15,967.5 plus purchase costs.The lofts come from studio to four bed roomed apartments, costing from £157,000 to £320,000. As a cultural centre with easy access from the rest of Europe, Krakow has enjoyed record tourism that has pushed the value of investments up the Polish property league to rank second only to the capital Warsaw. Property prices are expected to tread water until 2010 and then increase steadily.