Warsaw, Poland’s Capital, A Promising Investment Opportunity.
Warsaw, Poland’s historic capital city, located only two hours from London, is presenting itself as a desirable destination for investment for both the buy-to-let and resale markets.
The Polish economy has been registering significant growth recently with an average GDP of over 12% for the last 5 years and a substantial increase in foreign direct investment, around US$6.5 billion for the last few years. Increased investment translates to higher salary job creation, illustrated by a 20% rise in average wages over the last three years and an ongoing 4% increase per year forecast. The effect of higher wages consequently boosts individual buying power, therefore further stimulating demand for property. High demand with a lack of supply in residential property has resulted in property price rises, a trend which looks set to continue for the foreseeable future.
Warsaw is an expanding city, registering the highest salaries and cost of living in the country, and has experienced dramatic price increases over recent years. Last year, the most sought after locations in Warsaw registered price escalations of 30% while less desirable areas grew between 10% and 20%. The Warsaw property market continues to be demand-dominant and yet, despite a growing number of new developments bolstering supply, capital growth predictions for the next decade still stand at 13% year-on-year.
Such an impressive record of price increases in the property market and a confident capital appreciation forecast, present a sure and profitable exit strategy for the resale investor. The consistently growing, well developed rental market, with its high demand for properties in prime locations of high standards, is expected to see further price rises of 5% - 6% over the next year with city centre rentals estimated to average moderate rental yields of approximately 5%.
Warsaw property investment promises a lucrative opportunity with evidence substantiating a shorter term buy for resale approach as the more profitable venture for the investor rather than a buy to let approach. Obelisk International is continually scouring the global real estate markets for unique opportunities in order to create lucrative, tangible, and secure investments to add to the discerning investor’s portfolio.
The Polish economy has been registering significant growth recently with an average GDP of over 12% for the last 5 years and a substantial increase in foreign direct investment, around US$6.5 billion for the last few years. Increased investment translates to higher salary job creation, illustrated by a 20% rise in average wages over the last three years and an ongoing 4% increase per year forecast. The effect of higher wages consequently boosts individual buying power, therefore further stimulating demand for property. High demand with a lack of supply in residential property has resulted in property price rises, a trend which looks set to continue for the foreseeable future.
Warsaw is an expanding city, registering the highest salaries and cost of living in the country, and has experienced dramatic price increases over recent years. Last year, the most sought after locations in Warsaw registered price escalations of 30% while less desirable areas grew between 10% and 20%. The Warsaw property market continues to be demand-dominant and yet, despite a growing number of new developments bolstering supply, capital growth predictions for the next decade still stand at 13% year-on-year.
Such an impressive record of price increases in the property market and a confident capital appreciation forecast, present a sure and profitable exit strategy for the resale investor. The consistently growing, well developed rental market, with its high demand for properties in prime locations of high standards, is expected to see further price rises of 5% - 6% over the next year with city centre rentals estimated to average moderate rental yields of approximately 5%.
Warsaw property investment promises a lucrative opportunity with evidence substantiating a shorter term buy for resale approach as the more profitable venture for the investor rather than a buy to let approach. Obelisk International is continually scouring the global real estate markets for unique opportunities in order to create lucrative, tangible, and secure investments to add to the discerning investor’s portfolio.
posted by Obelisk International at 10:46 am
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