Poland is widely seen as one of the most attractive investment locations not only in Europe, but globally. It offers both political and economic stability along with the dynamically expanding large domestic market. With the population of over 38 million the country is the 6th economy in the European Union.
From 2003 to 2017, Poland’s GDP per capita increased by 81 per cent. Within 15 years of its introduction into the European Union, its economy and large-scale works on comprehensive modernization of the country, including reconstruction of transport infrastructure.
In addition, it is placed by the United Nations Conference on Trade and Development World Investment Report 2011 among the top locations to attract foreign direct investments and ranked the 6th most attractive investment location in the world. In order to enhance the ease of doing business Poland has introduced four significant reforms making it easier to: register property, pay taxes, enforce contracts, and resolve insolvency.
Why is Poland so attractive?
Poland is one of the most attractive locations for foreign investments. International reports highlight: the economic and political stability of Poland, educated and competent human capital and a large domestic market. In times of global economic crisis Poland has strengthened its position, not only in the region of Central and Eastern Europe but also all over the continent. Foreign investors willingly invest their capital in Poland treating it as a safe place in times of economic instability. To the top of that tourists are touched by Polish hospitality and friendliness, Poland’s cultural heritage and their natural landscape.
Why people decide to invest in Poland?
Looking for a place where you could invest your money Poland might not come to your mind first. Probably you think it’s a cold place which still is suffering from its time under communist rule.
The main reason why the corporations wanted to expand to Poland are its location, its infrastructure and the most important its people. Moreover property or real estate is much cheaper in Poland than in many European countries.
Housing demand in Poland continues to rise robustly due to the country’s excellent economic performance, wage rises and declining unemployment, combined with historically low interest rates.
Foreigners can freely buy condominium units in Poland. Land for commercial purposes can be freely bought by citizens of the European Economic Area (EU + Iceland, Liechtenstein, and Norway).
Is it worth to invest in Poland?
The rush to buy property as an investment in Poland is largely related to record low Polish interest rates, and low capital values for property. Savings otherwise languishing in savings accounts are attracted to higher annual returns from rental properties (with the perspective for future capital growth). At some stage, the increased supply of new rental properties on the market will prevent rents from rising but there is not expected to be any downward pressure on rents either. Many investors are also taking advantage of the low interest rates by leveraging their investments with bank borrowings – effectively getting their future tenants to pay the mortgage with the monthly rent.
As is already well known, real estate can generate income not only from rent, but also from resale. Poland offers good opportunities for income due to capital gains: its residential real estate market stands out with its relative stability, and it did not experience price slumps as Greece and Spain did. Periods of decline in the Polish market lasted 1-2 years, after which growth started again.
Consequently, housing in Poland attracts investors with its low price and opportunity to profit due to price appreciation. The average cost of a square metre in Poland is significantly lower than in other European countries.
Buying a rental property is always a good way to earn passive income and build wealth. And if you have possibility – it is always worth to invest in properties. As T. Harv Eker said “Don’t wait to buy real estate, buy real estate and wait”.
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INVENTUM NIERUCHOMOŚCI and Ewelina Matyjasik-Lewandowska are willing to advise on all parts of the process: from investment property selection, through help in arranging finance, utility connection, insurance arrangement, registering for tax, fit-out, letting and ongoing management to provide a complete hands-off service for those investors who want to experience a truly ‘armchair investment.’