Why Poland?

Poland is a property boom that has already started but has a long way to go. The maths are simple - Poland has a GDP per capita of $14,400 compared to $28,426 in Germany (Source: OECD) - it's a disparity far too great to maintain. The proof can already be seen in GDP per capita growth. In 2006 this was 18% in Poland compared to 3% in Germany (Source: OECD).

And while the credit crisis has caused the economies of most western countries to go into reverse Poland is still moving on. In Quarter 4 of 2008 its GDP growth was still a healthy 2.9% and the economy continued to grow through 2009. Furthermore a crisis in the country remains unlikely because the residential mortgage debt to GBP ratio is 8%, compared to 83% in the UK (Source: OECD)

Apart from the economic strength of the economy a number of other key factors are driving the property market:

• The phase out dates for permit requirements to purchase property are getting closer (see below)
• There is a relatively low use of mortgages in the country
• Poland is the 7th most attractive country in the world for Foreigh Investment (FDI Index 2007 and 2008)
• Between 2007 and 2013 27 bn Euro is to be spent updating the road network
• Between 2007 and 2013 6.2 bn Euro is to be spent updating the rail network
• Poland is now Europe's 7th most popular tourist destination (ahead of Greece!)
• Increasing Low Cost flights from Europe
• There are plans to join the Euro over the next dacade
• Foreign companies invested 10 bn dollars in 2005 and 15 bn dollars in 2006, and nearly 30 bn dollars in 2008
• It is estimated Poles working abroad are now sending or bringing home 14 bn Euros a year
• Poland has the most acute housing shortage in Central Europe
• Poland is benefiting (as a logistics hub) from increased trade between Russia and Europe simply because of its geographical location
• Developers are finding it increasingly hard to source land with planning permission to build

A full analysis of Polands' current (2007 and 2008) real estate market and its drivers for the future are in the book Buying Property in Poland available to purchase online now.

It seems obvious then that the main questions are really not 'if' or 'when' to buy but 'How' and 'Where'.

As a side note it is worth considering why Polish properties have not already boomed more considering it has been an independent state since 1989 and part of the EU since 2004. This is a fair point and what makes Poland an investors dream! In order to stop properties becoming unaffordable to the local population foreign buyers require permits which allow them to buy limited property or land. Buyers should be aware that permits are more restrictive close to the German border for obvious reasons. These will gradually be phased out and as these 'phase out' dates approach prices are expected to rise even more rapidly.