July 20, 2024


Mad about real estate

Don’t Buy Property in Poland Without These Facts

Polish property seems to me to be one of the safest places to invest in real estate in Europe. It has both a growing returning population and overseas investors all in search of the best Polish property to buy.

It was not so long ago when Poles migrated to the UK and other European countries in their thousands in search of work and prosperity. There is still a large population Polish people abroad but unlike many other migrants the majority have one thing in mind and that is home. Polish workers earning money are sending it home or saving it for when they return home and this is serving to strengthen the economy.

The recent global slowdown has seen areas such as the UK lose their attractiveness as many skilled polish workers realise they can start earning more money back home.

Poland which is bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast is set to become the financial powerhouse of central Europe.

According to Ernst & Young’s European Attractiveness Survey 2008, Poland is the top European location for new foreign investment. 834 international investors were surveyed by Ernst & Young, with 18{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of them indicating they would invest or consider investing in Poland in the future. The investors came from a total of 43 different countries around the world. Poland ranked second in the survey in terms of jobs created last year in Europe. There were approximately 18,400 new jobs were created in 2007, although this represented a 41{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} drop on the 31,000 jobs created in 2006. For all of Europe, the United Kingdom placed first, with just over 24,000 jobs created.

In terms of foreign direct investment projects, Poland ranked seventh in Europe, with 146 new projects. The UK was first in this category as well, with 713 new projects, followed by France, with 541. The total number of new FDI projects in Europe grew by five percent year over year in 2007, from 3,531 to 3,712.

Buying property in Poland as an overseas buyer traditionally meant that investors would head to where they know. So areas such as Warsaw and Krakow have become property hotspots for both Poles and foreign investors. We all know that where there is demand prices rise so my tip would be to consider the suburbs of these two great cities. Warsaw still suffers with a housing shortage and property on the outside the city seems to be a great investment. Here you will find lower prices and more room for capital growth plus people willing to rent.

Foreigners can buy property in Poland with little restrictions once they have obtained the right permit from the Minster of Internal Affairs Once you have found a property you wish to purchase, price negotiation is usually done face to face with the seller. After agreeing upon a price, a notary will draw up the initial contract. This sets out the terms and any conditions, and a 20{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} deposit is paid. The notary typically serves as the legal authority, carrying out any property checks and searches.

So in my view Poland as an investment hot spot seems as safe as houses