Polish Paradise?

The cities of Warsaw and Krakow in Poland are offering investors some great opportunities in property with high growth potential, low risk and some great real estate deals. High levels of direct foreign investment into the country in all areas of the economy have produced a stable financial environment and the Polish Government have been quick to take advantage of the economic stability by creating a series of economic incentives including the rebate of real estate tax, the payment of grants, and reimbursement of land costs for certain investors. All of these factors mean that the country is set to be a good place to invest in and is an area that should produce excellent long term gains.

In 2005, Poland saw high increases in the amount of foreign property investors – not just in the major cities, but also in more rural areas. There is only a limited supply of good quality property, and this over-demand and under-supply is fuelling a mini housing boom which is currently in it’s early stages.

Warsaw
Many people are under the false presumption that Warsaw is a concrete jungle, depressing, boring and a huge wasteland of Societ-era housing. However, in the 15 years, there has a been a huge change in the face of Warsaw. Naturally, the city still has it’s problems and parts of the concrete jungle remain, however there is now a thriving metropolis in the heart of the city with plenty of culture and history on show. As Poland’s capital city, it attracts a lot of tourists all year round, so rental yields are good. Growth in the city is also fuelling demand for properties, so buying a good quality property now will probably tield good dividends in the future.

Krakow
Krakow is located in the south of Poland on the Wisla River. It is one of the country’s old cities and also one of the most beautiful. It has a history which can be traced back to over 1000 years. As a past capital of the country, it has a diverse, fascinating history with uprisings, border-shifts and varying occupations.

Many Poles consider Krakow the real heart of the country because of it’s deep historic roots and because of this, the city attracts huge volumes of tourists each year, with more than 4 million taking in the sights each year. The huge tourism trade means that rental properties would be a good investment in the city – there is a year-round tourist trade so rental income should remain fairly consistent throughout the year.

Poland Foreign Real Estate Investment
In the past, the aquisition of real estate in the country by a foreign investor will require a permit from the Minister of Internal Affairs and Administration. However, with Poland’s entry into the EU, European foreign investors no longer need a permit, however there may be certain restrictions in place such as restrictions on the type of land being purchased and it’s intended use. It is wise to contact a local Polish solicitor who will be able to guide you through all the local laws and customs before you complete on your property.

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