Poland Property Investment News

Poland tipped for growth in GDP and construction in 2008

According to experts, Poland can look forward to another year of economic growth as the country’s GDP is expected to rise by around 6% over 2008 (research from Merrill Lynch). Meanwhile construction levels are also expected to be up in 2008 as figures from the Polish Central Statistical Office (GUS) show a 50.1% increase in the number of housing construction permits issued between January and October this year, against the same period last year.

Poland’s forecast GDP growth is a result of factors including fiscal impulses and EU funding, according to analysts at Merrill Lynch. The boom in construction comes after a year of growing tourism and increased accessibility – with a number of new flights introduced between the UK and Poland - which has fuelled the demand for investment property in Poland. The rise in permits issued has occurred across the board. Permits for housing co-operatives grew the most (68.4%), while permits for flats for sale or rent grew by 59.4% and for individual houses by 45.5%.

Already this year Poland has observed a considerable increase in the pace of construction. According to GUS, construction began on 36.8% more apartments between January and October this year than in the same period of last year.

However as the country’s economy continues to grow, it is not just residential property that is changing the landscape of Poland. Warsaw is looking forward to the construction of what will be mainland Europe’s tallest skyscraper – a 280m building incorporating a hotel, offices and apartments. It is estimated that the project will cost over PLN 1 billion (approximately €280 million). Poland’s National Stadium will also be in Warsaw, which is due for completion in the third quarter 2011.