Why investing in Poland Property?

Why investing in Poland ? Over the last decade many multinational companies discovered real estate investment opportunities in Western Europe.It is the opinion of many International Investment Banks that these markets are almost saturated thus diminishing the returns on investments. The time is therefore right to look at an alternative - the Real Estate Investment Market of Poland. Poland market continues to develop and reached a stable stage, The residential segment has seen the strengthening of sales versus leasing, fact motivated not only by the mortgage loans input but also by the stronger purchasing power of local individuals. Supply has remained constant, while the overall quality has improved considerably. Villa compounds or small blocks of flats brought on the market dwelling units with high standard finishing, large sunny rooms and modern layout. Villas have 200 to 300 square meters of usable space, with gardens that reach 100-300 square meters, while apartments usually provide around 100-150 square meters of usable space. The retail market has a big potential, since all the big retail chains present on the national market announced their plans of expansion in Poland and throughout the country. Owing it to its stage of development, the Poland retail market represents a good opportunity for chains of supermarkets/wholesalers and discount stores. As several major international companies are moving many of their back offices into relatively low cost skilled markets, Poland has started to benefit from this international trend called Business Process Outsourcing. After years of booming residential sector during the 1990's, the prices between 2001 and 2003 experienced a short period of painful corrections, leading to drastic slashes in new developments. In 2003 alone the new residential units delivered on the market have been decreased by almost 40%. Since the beginning of 2004 the market picture has changed dramatically. The prices are up again, 25% in the capital city Warsaw alone. The average price of residential properties in Warsaw is standing at $1,100/sq.meter, with the new developments sold for $1,200-1,400/sq.meter. In the city center the luxurious apartments are sold for up to $3,000/sq.meter. On the other hand, the investment yields have dropped to 9-11% throughout Poland, the lowest marks since early 1990's. When it comes to long-term forecasts, the market optimists point out at the fact that Poles still enjoy 30% of the average living space in the EU. They too mention the fact that more than 20% of all Poles are still living in the countryside. A process of mass migration toward the larger urban areas can push up the prices. Pessimists, on the other hand, point out at the still lower incomes in Poland, reaching barely 50% of the EU average.