Tue, 04 Sep 07
Validus Invest is tipping second tier city, Lodz, as the emerging hotspot of 2007, with capital growth forecasted at as much as 40% over the next 12 months...
Situated in the geographical heart of the country, Lodz is as yet relatively undiscovered by overseas investors and property prices are still very low.
Lodz has been designated a ‘special economic zone’ aimed at attracting foreign investment and as international companies locate here, the housing market is starting to develop with a growth in new build developments and prices beginning to rise.
The decision to award Poland co-host of the 2012 European Football Championships will increase the opportunities for foreign investors even further, driving large numbers of workers and visitors to the six host cities.
The Government plans to spend 19 billion Euros improving the countries infrastructure, including road and rail upgrades and regeneration.
Investors can expect prices to increase not only due to increasing demand but due to pressure on the cost of planning, building materials and labour caused by the development.
Louis Mann, Sales Director at exhibitor Validus Invest, comments: Many investors have been excited by the news that Poland is co-hosting the European football championships in 2012 and have invested in cities such as Katowice and Gdansk as a direct result of the games.
Typically, our investors pay a relatively small deposit upfront, with the balance payable on completion in 2008 or 2009. This allows them to generate capital growth whilst the property is being built but also not have to draw down the mortgage until completion.
Stephen Barnes, Founder of Bardel Poland, comments: Poland is a large country and should not be looked upon as one market, as the diverse Polish cities perform very differently.
However, although investors should make sure they research thoroughly before purchasing, the markets offer the components for a lucrative and balanced property portfolio.
My advice to investors would be to rely mainly on the local population as tourism is likely to be finite and to avoid areas already being mass marketed as you will have missed the boat".
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