investment

Over the years property has proven to be an extremely rewarding investment. Whilst mature markets can still provide returns the real opportunity is now in emerging countries - there is no better country than Poland and no better city in Poland than Krakow and the surrounding areas.

During the first half of 2007 the value of new-build property in Krakow enjoyed growth from 25% and upwards. A report by The City Strategy and Development Department of The Municipality of Krakow says that from 2004 onwards demand has significantly exceeded suppy and nothing implies that this situation will slow. No wonder Krakow is still seen as a City that will deliver excellent growth opportunities. So there is evident opportunity for substantial short term gain in Krakow but also sustained long term growth.

With the development of substantial new technology parks, the establishment of western businesses, the ever changing student population, the growing interest as a tourist destination as well as the opening of a new motorway providing improved internal communication and the airport extension with increased international budget airline traffic, the signs are good for Krakow.

More generally 90% of Polish nationals live in rented accommodation and it is estimated that about 30% will need to be re-housed in the next 10 years due to the crumbling ex-Communist housing stock. Currently about 60% of the population live in urban areas compared to about 75% in all of Europe. There is expected to be a massive migration from rural to urban areas over the next 10 years or so.

Poles are also now recognising that property ownership is not only to put a roof over their heads but also an investment for the future and mortgage lending to Poles is on the up. There are plenty of other socio-economic indicators that point to growing and on-going demand.

Rental yields are also an important consideration. Gross yields are typically 8%, netting out at 4.5 to 6.5% according to analysts. The diversity of demand in Krakow is impressive, from local to foreign tenants, students to professionals. Every investment property will have demand from student accommodation to senior managerial ex-pat luxury apartments. And the majority of purchasers of apartments in new developments are Polish nationals buying their principal residence, supply for rentals will remain limited and therefore in demand.

Zakopane, set in the Tatra Mountains, lies just 100 kms south of Krakow and is benefiting from being in close proximity to Krakow, especially now a new motorway is being built to connect the two cities and a second international terminal has opened in Krakow. Zakopane lies in a stunning mountain location, it is the highest city in Poland and largest centre for mountain tourism. The city, which has a local population of 28,000, is visited by 3 million tourists each year who enjoy many mountain activities such as trekking and climbing during the spring, summer and autumn and skiing/boarding in the - Polish Winter Capital - during the winter. Zakopane is also the regular annual host for the Ski Jump World Cup and is bidding for the Winter Olympics. investpolska has a number of properties in Zakopane that are ideal for investment as well as being superb holiday homes and superb holiday lets.

Every investment property will provide capital gain. But for the investor who is principally after short term gain buy off-plan. For short term gain with income in the near future go for nearly completed. For immediate income go for newly completed developments.

If you are interested in buying investment real estate property in Krakow and the surrounding areas investpolska. is perfect for you. We specialise in investment property and we specialise in the Krakow area.

So go to contact us, complete the enquiry form in as much detail as you wish and send us an email: customerservice@investpolska.com, alternatively call us now on +48 12 432 14 60.