It is estimated that almost 500,000 Polish people have emigrated to the UK since Poland joined the EU in May 2004. However, the flow isn't all one way. EU entry has really established Poland as a popular destination for overseas property seekers, and there are currently more British investors looking to purchase Polish property than ever before.

"The Polish property market is growing hugely," says Greg Heywood, founder of UK and Polish estate agency The Step.  "There is a housing shortage of 40,000 homes every year. Earnings and standard of living are increasing dramatically while interest rates are just 3 per cent and it is possible to obtain mortgages of 80–90 per cent."

And while the chance to own a property in an up-and-coming country with a fast-improving economy and picturesque cities such as Warzaw and Krakow will appeal to some buyers, the main factor driving overseas interest in Polish property is the growth of prices.

A recent report into overseas property prices, released by Savills, has revealed that Polish property prices have increased faster over the last year than in any other country in the world. According to the Savills 2007 Global Residential Market Review, Polish property prices have increased nationally by over per cent in the past year, almost 10 per cent more than in second place Denmark and third placed Bulgaria.

According to the report, "In 2006, new property developments in Warsaw recorded prices rising by 33 per cent and in historic Krakow to the south, prices rose by 58 per cent."

Savills put the growth of Polish property prices down to the fact that Poland now has one of the fastest economic growth rates in Europe and such a buoyant economy is being reflected in housing market activity."

The Savills report is not the only recent data to paint such an appealing picture for property investors looking for a destination with capital gains potential. "According to the 'Emerging Trends in Real Estate Europe Report' released jointly by the Urban Land Institute and PriceWaterhouseCoopers, Poland should show the largest increase in residential property sales across Europe," says Emma Holifield of Property Frontiers. "With an increasingly robust economy and within three-hour flight of London, buyers can keep a close eye on their investments," she adds.

What's more, it is generally agreed by experts that the Polish property market is one of the more stable of the emerging markets, and values are expected to maintain significant growth for the foreseeable future.

So, then, who knows over the next few years time the number of Brits seriously considering buying a Polish property could even start to rival the number of Poles currently making their way to start a new life in Blighty.

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Article first published 25 June 2007