News: Warsaw set for 'massive' rises

Tue, 11 Sep 07

Property prices in the Warsaw are set to rise by 20 per cent over the next five to ten years...

The overseas real estate firm Property Secrets has carried out an analysis in Poland's largest city and concluded that it has the potential to continue yielding excellent returns.

The burgeoning home lending market has seen the emergence of 100 per cent mortgages for first-time buyers, which, combined with rock bottom property prices and a sudden excess of disposable income, is fuelling a new demand for homes in the capital.

This is underpinned by a booming economy, which has benefited from government investments in infrastructure and industry, according to the property advice company.

Consequently, Warsaw has become the country’s business and political hub, with new jobs galore.

"Although property in Warsaw is less affordable today than it was a year ago, I believe the fundamentals of the market are still strong and we will see long term sustained growth of ten to 20 per cent per annum over the next five to ten years," said Property Secrets chief analyst Simon Tweedle.

"The economy is still performing well and unemployment is falling. Mortgages have become slightly more expensive recently, but rates are still low and not high enough to put any serious brakes on the housing boom."

Poland will be sharing the European football championships in 2012 with the Ukraine, which is due to serve as a further boost to the Warsaw economy.

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