Polish Property Market 2008

A New Build Investor's Market Overview

As you will probably be aware, the significant growth in capital appreciation of the last 3 years has slowed down. In 2008 growth in the major cities is unlikely to exceed 10% and in some places negative growth is a possibility.

Up until the second half of 2007 it was a Seller’s Market. The majority of Polish property developers demanded stage payments and offered little, by way of added value or discounts, as an incentive to buy.

Today the situation has reversed itself. In the current Buyer’s Market, developers are now far more readily prepared to offer International Investors discounts, accept low deposits and even add value by bundling such things as the inclusion of underground parking spaces in the price of the apartment.

What else in 2008?



	Professional Property Fit Out Services for International Investors

		Most Developer built properties in Poland are only completed to a shell state, leaving owners to lay flooring, paint, fit internal doors, kitchens and bathrooms. For an International Investor choosing the right Fit Out partner can often be a daunting decision, which if got wrong can be very costly - seriously affecting property marketability and overall returns expected.

	As a well respected property shell fit out company for Polish apartments and houses, primarily in Warsaw and Lodz areas, we assist our International Investor clients to optimise their property's appeal on the rental, or resale, market in Poland.
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Throughout the major cities in Poland, rental demand for Quality new build flats and apartments is very strong and yields are increasing.

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Distressed speculators looking to 'Flip' have created significant opportunities to buy ‘Off Plan’ flats due for completion at heavily discounted prices - well below the market value!.

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In some cities a shortage of genuine luxury apartments means that good capital appreciation can still be obtained from investing in up-market properties.

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More Financial Products are entering the market and consequently delivering a better choice for the ‘Buy to Let’ Investor. Polish banks have always had relatively strict lending criteria and their exposure to the recent sub-prime banking crisis has been limited. Moving forward their lending criteria is unlikely to be materially affected by the current global credit squeeze.

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In the past the majority of Polish rental companies have failed to offer a ‘Full Management' service, instead preferring to find a tenant for an Investor for a single fee payment (usually equating to one month’s rent). This service has proved to be of limited benefit to the International Investor. With a considerable number of ‘Buy to Let’ units completing in 2008, an increasing number of rental companies are now offering ‘Full Management' contracts. The resulting competition in the sector should soon start to deliver real cost and service benefits to International property investors.

Please feel free to browse our website or contact us if you would like further information or wish to ask us a question.