Why invest in Poland Today ?

The Polish Economy is firing on all cylinders; The Polish Economy is firing on all cylinders; Poland’s economy is strong with 6.5% GDP growth in 2007 and is predicted to continue growing in 2008. Inflation was 2.5% last year. Interest rates are at an all time low, thanks to stability of the Polish financial sector. Corporate Profits Taxes remain low at 19% and the unemployment rate of 11% is falling nationally, however regionally, in Warsaw real unemployment is less than 5%. Warsaw is seeing unprecedented inward investment by many multi-national companies. EURO 2012 will showcase Europe’s fastest growing economy to the world.

Growing population and income; Growing population and income; With a population of 39 million and a GDP of USD 413.3bn, Poland accounts for 52% of all the accession states population and 42% of their combined GDP. GDP growth was up 6.5% last year (EU25 mean average GDP growth is +1.5%) As GDP grows, so too will asset prices. Poland is ranked 3rd or 4th in the Top 10 global investment destinations, 1st in planned investments in Europe. Poland will receive over €90 Billion in EU Structural Funds between 2008 and 2013, ranking it Europe’s top priority investment country. Personal incomes rose by over 12% last year and even higher in industrial and service sectors.

Chronic Housing Shortage; Demand for quality new housing far out-strips supply. The Polish Residential supply is reckoned at 12 million units nationally, but last year was undersupplied by 1.7 million units. Warsaw alone is short 150,000 units and demand is rising daily as Warsaw’s population is expected to reach 4 million by 2017, from the current population of 1.9 million.

25% Capital Appreciation; 25% Capital Appreciation; Housing prices rose by 18% nationally in 2007, while in Warsaw prices rose by 30% in 2006 and 39% in 2007. Rental yields remain strong at 6-7% as demand rises steadily for good quality housing. Polish Banks are lending more and more to Polish nationals now to finance their purchase of new housing. Locals are driving the market demand, not the overseas buyer. Just 19% of Polish property is mortgaged nationally, but this is set to change dramatically as financial institutions ease credit and 100% Loan-to-Value loans become available.

Overseas property Investors rejoice; Overseas property Investors rejoice; All these indicators augur well for the Property Investor today in Poland. Risk is low, demand is high, yields are consistent and capital appreciation is outstanding in the Polish property market now and right the way through 2013 and beyond.
There never has been a better time to buy in Poland.