Poland top overseas property hotspot

Poland is the top overseas property investment location, a new study shows.

Poland is the top overseas property investment location, a new study shows.

Property investment group Assetz finds property in Poland gave a 165 per cent total cash return in the first quarter of 2007, making it the leading investment hotspot.

The group's quarterly survey also reveals capital gains of 33 per cent were experienced by Polish properties over the same period, with economic growth linked to European Union membership contributing to the strong performance.

Deposit levels of 15 per cent also attracted more investors to Polish property.

'Poland looks set to lead the pack of emerging markets this year, with strong capital growth and excellent local demand as well as foreign investment. Warsaw's property prices remain amongst the lowest in Europe and the introduction of major industry to the city is attracting an increasingly young and wealthy population. I expect to see continued strong growth and a flourishing rental market,' commented Stuart Law, Assetz managing director.

He added: 'The global housing market is performing well with positive capital growth in every destination on the tracker. Bulgaria, South Africa and Spain are likely to face a slowing in the rate of growth during the next few months, but are still a long way off from falls in house values.'

Looking at other overseas property hotspots, Assetz research shows capital growth in Bulgaria has also been increasing, reaching 17.3 per cent across last year.

"Much of this growth has occurred in peripheral locations where prices are catching up with the tourist hotspots, while more popular locations such as the capital Sofia have grown by 9.8 per cent and [the] Bankso district by just 5.3 per cent," Assetz noted.