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Strong growth predicted for Polish residential market

Poland is experiencing steady growth and can now be regarded as among the top hot spots for residential property investment in Europe, according to Louise Reynolds of Property Venture.

‘As the only country in the European Union not to go into recession, when all the other countries did, Poland represents a safe haven economy, which is politically stable and has a buoyant property market. So much so, that even China is investing in the country, with the leading firm in printing cylinders, Shanxi Yuncheng Plate Making Group, building premises there,’ she explained.

‘Low labour costs and proximity to important markets are making Central and Eastern Europe an attractive manufacturing destination and Poland is key to this. In the major cities, English is widely spoken and there is a highly skilled workforce in the main conurbations working in white collar industries, like IT, Accountancy, Law. Likewise, the building industry is in demand as the country gears up for the UEFA 2012 Football Championships and is building stadia and improving the infrastructure,’ she added.

Property prices have appreciated in stronger European countries like Poland, whose economic growth stands at 8.1%. Continued inward investment and international employers seeking to bring subsidiaries to Poland, recruiting more people in city centres and special economic zones, like Krakow and Łodz, creates rising demand for property. Property prices grew by over 8% in 2010 at a time when the UK was barely averaging 1% property price appreciation.

Poland is expecting GDP growth of over 3.5% in 2011. ‘Property investors, seeking capital growth and promising rental prospects should think about Poland. Currently a city centre development in Krakow offering pre sale prices, offers yields of 8% and solid capital growth. Prices start at £64,000 for a one bed apartment,’ said Reynolds.

‘It is not your traditional second holiday home destination, but makes a great choice for an investment property. One of the main city centres such as Warsaw or Krakow, has lots to offer. Krakow, for example, is very popular as a city centre break, given all its historic connections and proximity to Auschwitz,’ she explained.

‘There is a complex property story within the European continent and within each country. So Europe is not an all, low growth property zone,’ she added.