Business in Poland: Property in Poland

he market for property in Poland is growing at a rapid rate, it is in demand by locals and foreign investors alike. The Polish economy is booming, unemployment is declining and the country is politically stable. Now is certainly the time to invest.

The property market in Poland has benefitted from the fact that Poland was one of the most successful countries to enter the European Union in 2004. A growing economy has led to job creation, more wealth, greater prospects for Polish people and an overall optimism. Property in Poland has benefitted from the ever increasing number of locals who can afford property and have money to spend.

A main reason why property in Poland is seeing rapid price growth is the fact that there is a high demand for property in the cities. Some cities in particular such as Poznan and Wroclaw are seeing demand far outstrip supply, leading to a shortage of good quality property and therefore capital appreciation, in some cases on a large scale.

The Polish mortgage market has opened up considerably in recent years, locals and foreigners are able to take out a mortgage relatively easily, helping to fuel the demand for property in Poland. Foreigners can often obtain 80% mortgages on properties with little initial outlay.

The current situation in the property market in Poland has shown that it is the smaller cities that in the past have been less well known to investors such as Poznan, Wroclaw, Gdansk and Lodz that are seeing the high property price growth, rather than the more traditional investment markets of Krakow and Warsaw which have in the past seen rapid growth and now are stabilising. These more mature markets are however not to be discounted as they still offer investment potential in the right locations and property types. Many investors make their first steps into the market for property in Poland in these more mature markets.

Poland is receiving large restructuring funds from the European Union to help improve the countries infrastructure. New roads and being built, services are being improved and the property market in Poland is benefitting from this. Poland will be jointly hosting the 2012 European football championships, this is a catalyst for greater investment in infrastructure and the economy as well as helping to showcase the country to Europe, again, we are seeing the benefits to the property market.