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polish property searches up 60pc as eu debt crisis worsens

News Posted On: 04 October 2011

Property in Poland is proving increasingly popular as more and more investors seek to avoid the Eurozone and its worsening sovereign debt troubles. The latest report into overseas property searches and interest from Rightmove and Moneycorp shows searches for property in Poland up 60% in August, as people look away from traditional markets such as Portugal, Spain and Italy.

Poland had previously been intending to adopt the euro, but has backed away from this lately. This is hardly surprising with a Greek default on the horizon and the Polish economy growing 4.3% in the second quarter of 2011.

Residential property sales have increased this year, and projects which had been put on hold before the global crisis have now been resumed. But the property market is still not seeing the same levels of activity from several years ago.

It's thought the increased activity in the residential property market is largely due to the growing economy, stable labour market and increasing incomes. Interest rates are still exceptionally low as well, and the number of mortgage loans granted by banks is currently at a high but stable level.

The supply of new homes in the six largest markets in Poland has increased for the seventh consecutive quarter, and is now 29% higher than a year earlier. During the last 12 months there has been an 8% increase in the number of homes being sold, and the figure is 17% higher than in 2008. Developers are also choosing to build more projects in central and downtown locations, having concentrated on affordable housing schemes since the onset of the financial crisis.

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