About Us Contact Us Site Map

Investment Overview

Since its accession to the EU in 2004, the price of investment property in Poland has risen at a solid 10% per annum, mainly in its larger cities. Poland was the highest profile EU entrant of 2004 thanks to its geographical size and economic influence; investors were keen to see how successful the integration into the EU would be and how this would affect the market for investment property in Poland. Those who invested at that early stage have largely not been disappointed: the property market has gained real strength, with off–plan developments in popular regions of the country often selling out before completion.

WTTC predicts tourism potential

The World Travel and Tourism Council (WTTC) evaluates the prospective additional travel and tourism growth resulting directly from each new member state’s accession to the EU. They report that Poland’s “latent” potential amounts to an additional $23.3 billion in travel and tourism economy GDP and up to 1.5 million jobs created within the tourist industry. From Poland’s accession in 2004 to date, all indications are that the country has indeed begun to receive a significant boost to its travel and tourism economy, good news for buy–to–let investors looking to purchase investment property in Poland.

Increasing domestic demand

Demand for property in Poland is increasing, in part from a domestic population of over 38 million. The country’s young workforce is increasingly looking to move to urban centres and take advantage of the better employment opportunities and higher wages on offer. This is leading the average young Polish worker to demand higher quality properties to rent or purchase. Real estate investors are beginning to target this new and growingly affluent market given economic predictions that this is a trend set to continue.

Real estate incentives

The large amount of foreign direct investment (FDI) into Poland is predicted to increase both rents and property prices as a by–product of increasing salaries and economic growth in general. In order to keep FDI at the currently high levels, the Polish government has created economic incentives; benefits impacting the real estate sector include a rebate of real estate tax and of land costs for certain investor types. VAT on new apartments is 7%, whereas there is no VAT on property more than five years old. It is expected that from 1 January 2008 VAT on newly–built apartments will be charged at 22%.

Related items

Documents and Reports

	Poland property investment report (420Kb)
	Poland property guide (1Mb)
	Poland country guide (941Kb)
Documents and Reports

Other related pages

Bookmark with:	What are these?
DeliciousDiggredditFacebookStumbleUpon