Residental
With the slowing of the UK Market in particular – some investors are looking elsewhere – and in particular to the New Accession Countries for Residential investments. Brown & Co advise on all aspects of this market and source appropriate investments whether single Apartments or entire Properties – across the whole country.
With the Market for new flats increasing at 9.6% p.a. (Source: Government of Poland) in certain cities foreign investors are entering the Market and are able to take advantage of the recently developed Mortgage products now on offer . Yields are typically 4 – 6.5% meaning in most cases the Rent will pay the Mortgage. Factors impacting on the Market at this time include:
- Relatively low levels of housing stock have been entering the Market over the last 5 years tightening the supply side.
- Ageing existing housing stock is coming to the end of its intended life.
- Relatively young Demographics meaning a slightly larger proportion of the population is looking to purchase their first flat/ apartment.
- Increasing Disposable incomes through GDP growth of 3-4.5% p.a.
- Low levels of existing Debt: Mortgage Debt is 4% of GDP in Poland compared with 34% as an average across the European Union.
A more developed Mortgage product and lower interest rates; even up until half way through 2005 Mortgage products were under-developed and not easily available. This has changed rapidly and Mortgages are now available in Polish Zloty (6-8%), Euro (4.5-6.5%) and Swiss Francs (3-5%) with up to 80% Loan to Value.