GCC investors eye Poland's property

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GCC investors eye Polands property
Poland is predicted to join the G-20 list of the largest economies in the world by 2022. - Supplied photo. -

Poland is the largest economy in Central and Eastern Europe (CEE) and is predicted to join the G-20 list of the largest economies in the world by 2022.

By Staff Report

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Published: Wed 6 Jan 2016, 5:46 PM

Poland is witnessing growing interest from Middle Eastern buyers to invest in its key residential property market amidst a surging economy.
Poland is the largest economy in Central and Eastern Europe (CEE) and is predicted to join the G-20 list of the largest economies in the world by 2022.
The World Bank's 2015 Doing Business report noted that Poland's ease of doing business ranking improved to 32nd (an all-time high) largely due to the burgeoning property market in major cities such as Warsaw, Lodz and Krakow, which have benefitted from significant new developments that have garnered considerable interest from both Polish and international buyers and investors. One of the key factors driving the Polish property market is the ease of property purchases and ownership for overseas investors. Foreign investors are treated with the same rights and privileges as domestics.
"Poland has a luxury housing market that has been recently revitalised and, when coupled with the country's strong economic performance, makes luxury property an investment which is growing in popularity. Our research has shown that the Polish market consistently rates among the most attractive in Europe, with 67 per cent considering it 'very attractive' for investment," said Karol Dzieciol, Partner at REAS, Poland's leading residential market consultant.
He said domestic demand is high, with just under 100 per cent absorption of stock on offer in the market. "Since July 2014, we have also seen a huge rise in the number of luxury property transactions in Poland, signalling that Poland's luxury housing market is on the up."
The Polish economy has been boosted by the building of a new port in Gdansk, the easing of electricity tariffs and the provision of new public-sector infrastructure projects supported by an ?82.3 billion EU Cohesion Fund. Safe investments, dynamic growth and attractive rental returns are prime beneficial offerings of a strong Polish economy.
In recent years, a key characteristic of the Polish residential market has been a lack of high-quality supply, with only 28 per cent of the current housing stock built after 1989. This has left a shortfall for quality housing, particularly within the luxury sector. However, the market has now taken notice of this deficiency and new schemes offer unparalleled opportunities for those looking to invest in the Polish residential market.
Recent property developments compare favourably to luxury high-rise residences in cities such as London, Berlin and Paris, where values often soar into the tens (and occasionally hundreds) of millions. The strong economic position of Poland offers attractive returns on investment, which is increasingly evident in the property sector. As the city continues to modernise and grow, the surrounding property and land values steadily increase.
"The demand for luxury housing in Poland is evident. Supported by the booming economy and increase in self-made millionaires - the number of millionaires in Poland is estimated to grow from approximately 50,000 to 89,000 by 2019 - the need for luxury homes will only increase. On a par with some of the finest residential developments in the world, Zlota 44 will set the benchmark for luxury living in Poland and meet the needs of the modern UHNWI," said Alicja Kosciesza, sales and marketing director at Zlota 44.
In recent years, large European investment funds have begun to look to Poland as a reliable high-yield investment market, though mainly within the commercial sector. Funds such as Axa Group, Tristan Capital, IVG and Blackrock have all made large investments into retail, office and warehouse properties. Very few large funds have seen enough quality stock in the residential market to invest heavily, though with few super-prime developments, residential investment is becoming increasingly attractive to foreign and institutional investors.
- business@khaleejtimes.com


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