Despite fears that the credit crunch is impacting on Eastern European economies, mortgages of 100 and 110 per cent are still available to Polish property buyers. However, investors need to be careful about where in the country they choose to put their cash - a report by the real estate portal Oferty.net showed that property prices in Sopot, Katowice and Lodz fell slightly in March, although the markets in Krakow and Warsaw remained buoyant.

According to the report, the best investment bets are Rzeszow, Lublin and Gdansk, where record price increases were recorded in the same month. The property price increase at 2.2 per cent in Rzeszow was the highest in the country and reached 4,870 zlotys per square metre. In Gdansk and Lublin, the average per square property value grew up to 7,079 and 5,187 zlotys, respectively.

According to Ewan McGarrie, chief executive of PropertyInvestment UK, the key to a successful Polish property investment is determining where demand exceeds supply. He points out that a number of areas within the country have only a limited supply of properties - Warsaw, for example, has a current estimated shortage of 50,000 to 55,000 apartments.

"A lot of Polish people who have been living in the UK are now going back and this is creating and stimulating demand," he commented.

Another reason to invest in Poland is the economy, which has grown apace in recent months. Estimates by Poland's Labour Minister Jolanta Fedak suggest that the country's unemployment rate could drop below 10 per cent by mid 2008.

"In the budget act there is the assumption of 9.9 per cent by the end of the year," Fedak said. "We hope and estimate that the level will be lower by mid-year."

The number of unemployed in Poland stood at 1.707 at the end of March, 72,000 below end of February rates.

But what does the future hold for Polish property? According to Liam Bailey of Property Secrets, things are looking rosy.

"Polish property has enjoyed massive capital growth in its first ( Warsaw, Krakow ), second ( Poznan, Wroclaw ) and third ( Lodz, Rszezow ) tier cities over the last two years," he says. "Currently the Polish property market has reached the summit of this phase of growth and is now experiencing a steadier phase. Rental yields in Polish property are improving."

He continues: "We anticipate Polish property experiencing a second phase of excellent growth, much like the Czech Republic has enjoyed, in 12 to 18 months."

If you want to take advantage of this growth forecast, then Poland Venture are currently offering a range of apartments in Warsaw at a starting price of 60,536 euros. Emerging Poland have apartments in the popular Biolelelka district of the city starting at £47,500.

Related articles:
Warsaw and Krakow property
Investment in Polish property growing

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For more information visit:
www.polandventure.co.uk
www.emergingpoland.com

Article first published 28 April 2008