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Fools,

I was just wondering if anyone out there was interested in the Real Estate Market in Poland?
I've lived in Warsaw these last 2 years having moved from London, mainly as I saw the potential for real estate prices - plus UK property was looking a bit 'toppy', so we sold the lot and are about 90% invested here now.
The market has not disppointed, clipping along nicely at 30-40% in parts of Warsaw, and many surveys rank Poland and especially Warsaw the capital, as one of the most attractive investment destinations worldwide for real estate. I can offer a fairly good insight if anyone is interested.
On another note, I've never known a more pro-American country than Poland.

best
colh
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Currency risk and political risk.

Also what are the rules about foreigners owning land? Taxation?

Investing in a foreign country seems like needless complication.
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"The market has not disppointed, clipping along nicely at 30-40% in parts of Warsaw,"

Paper gains are nice, but they are not really gains until you sell. In the meantime a lot of bad things can happen, the economy can turn sour, interest rates rise, appreciation will result in more building hence more supply which holds down future appreciation.

"many surveys rank Poland and especially Warsaw the capital, as one of the most attractive investment destinations worldwide for real estate."

check for bias in the surveys, and never trust the RE industry to give unbiased information. They exist only to promote. Be aware of local income levels for signs that it can support appreciation.
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'Currency risk and political risk' - of course, but if the timing is right you can gain from both. In 2004 Poland was recovering from severe recession and was due to join the EU. The GBP/PLN exchange rate topped out around 7.3, now it is around 5.7, a 22% appreciation. The economy has low and stable interest rates, the budget deficit is under control and the economy is expected to continue growing above 4% for the forseeable future - around 6% 1st qtr this year. The chances of a currency depreciation should remain small if the economy keeps growing faster than in the west. The political situation is a little complicated, but the coalition government understands and promotes foreign investment enthusiastically. The finance minister, Zyta Gilowska, is an internationally respected liberal economist.

Foreigners can own apartments without restriction but not land. For land you either need permission from the ministry of interior (1-3 month process), or you need to set up a Polish registered company to own the land, which is what most Western companies are doing right now. Currently as a private individual if property is bought and sold within 5 years, you must pay 10% of the value on sale, unless reinvesting in polish real estate within 2 years, in which case you do not pay. There is a 2% stamp charge on all purchases also. If owning as a company, you are subject only to corporate taxation which is 19% of profits.

'Investing in a foreign country seems like needless complication.'
Its certainly not easy, but many normal people from western europe are busy buying up property in former communist countries as they understand the potential for huge price gains. There are numerous companies around that can assist with the process (English is widely spoken), and if everything is done carefully and thoroughly there is no reason why it cannot be a successful exercise. The dollar has been under pressure for some time and the huge deficits do not seem to be going away any time soon, so I would view some diversification away form dollar assets as a sensible move.

A good analogy to use is the experience of Spain on joining the EU. It has a very similar population as Poland, and the property market is only just cooling down after a decade long boom seeing prices multiply up to 6 or 7 times. The EU structural funds poured into Spain are in the process of being redirected to the East to assist with infrastructure and other modernisations. It is no surprise that the Spanish are literally everywhere, especially here in Warsaw, looking to invest in real estate - they are currently the biggest real estate investors.
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'Paper gains are nice, but they are not really gains until you sell. In the meantime a lot of bad things can happen, the economy can turn sour, interest rates rise, appreciation will result in more building hence more supply which holds down future appreciation'

Of course you have to go into this with eyes wide open. I would recommend reading publications like the Economist to get a balanced view of the economic and political risks you might be getting yourself into when investing abroad. I personally see the situation more as an opportunity, as the UK housing market is clearly not going to see the gains we had up to '04 any time soon, plus I've been bullish on the currency since buying at 6.62. The risks are there - there is likely to be an election called sometime, but the economy just carries on regardless, at least at the moment. The more building argument is a good one, but in Warsaw the situation is dire for developers as the plannig approval process takes so long, and new roads and other infrastructure are simply not keeping up with other development. This means people are increasingly inclined to pay up to own centrally located appartments, to avoid the chronic traffic congestion all this rapid growth is creating. The circular road is planned to start in about 3 years, so the traffic situation will only get worse in the meantime.

The surveys I have read do not have any reason to favour Poland. When I get a chance I'll post some links.
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Paper gains are nice, but they are not really gains until you sell.

With a liquid asset like stocks, paper gains are actual gains since you could sell at any time, and you are continually "in the game". If you keep betting on the roulette wheel every round, you are gaining/losing chips (which equal wealth) even though the amount of cash in your pocket isn't changing.

With an illiquid asset like real estate, you can't be sure whether the paper gains represent actual gains you could realize or whether they are just in everybody's imagination.
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Sure real estate is illiquid in comparison, but this is a real estate board we're reading right(?), which I would guess means people reading it and contributing to it are interested in ideas regarding real estate investment, or perhaps the state of the US market right now is turning people off the idea? If you sold your house as you expect a crash, good on you, but where best to park the money? Bank? Mutual funds? Treasuries? If you rotate part of your portfolio out of the country completely you could benefit from a falling dollar and falling USD asset prices generally.

I know as much as the next person how liquid and interchangeable stocks, currencies, derivatives etc are (I used to trade them for a living), it simply does not mean they are necessarily better investments than real estate. You can get in and out of a stock hundreds of times a day if you think it'll do you good, but the richest stock investor in the world after all is a buy and hold man - and he is most certainly still 'in the game'.
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I am a US and UK RE investor. I have reviewed investment in Bali, France, Prague and Spain.

Most US real estate books, etc. state that people should not invest more than 45 minutes (30 minutes, 10 miles, 1 hour by car, pick your reference) from their home. There is a bias in the US to direct property management by the owner.

In the UK the typical investor uses a property management firm. They invest across the country, in Spain, in Dubai, in South Africa, in the US in Ireland, in other countries in Europe. Issues of currencies, legal title issues from the wars, etc. do not deter the investors.

Most Americans do not have a passport and find anything other than dollars a risk too far.

John Corey
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Greetings!

I've considered Poland some. Are there any good online resources you can recommend to familiarize oneself with the RE market there?

Yours,

-jbn
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www.propertysecrets.net - advice on foreign investing

www.wbj.pl - Warsaw business journal. Contains some articles on the real estate market. Free subscription.

www.polres.pl - help with real estate investment in Poland

On vacation until Wednesday now but will post some surveys etc then when i have time. A google search brings many more!

best

Colin
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Investing in real estate in Poland is interesting.

The location should be close to a main city. I myself am considering to investe in the city of Gdansk.

A polish friend was opening a solar studio in Gdansk about three years ago. Til now the economic progress is astonishing. His employees are being paid still 1,20 Euro per hour and he is paying more then Mac Donalds. When he started he had to pay less. In my home country Germany Mac Donald employees are getting about 8 Euro per hour. I am shure that gap will be closed completly within the next 15 years.

I think the same thing will happen with real estate prices.

Of course there are political and economic risks. The gouverment of Poland seems to oppose the process of european integration. They are are trying to stop every EU projekt. But on the long term Poland will become a fully integrated part of EU.

I believe the Euro (and polish Zloty) to develop better than US- Dollar for the next years.

Of course real estate can t be traded in a stock exchange. But if you are thinking about investing in real estate Poland should be a very good choice. In every case you need professional help.

greetings

Jost Wehn
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Jost

I agree with you - Gdansk is an attractive investment destination. It is a beautiful city in a thriving commercial area and has the added bonus of being next to the sea, which attracts premium prices the world over, but not yet so much in Poland. If you've holidayed in the German Baltic coast you'll realise the potential it offers.

I said a while back I'll post some more surveys on Poland. I'll start with a few news stories - if you get to the end of this lot you've done well!

Spanish invasion
From Lokale Immobilia
by Andrzej Wróbel
Scores of Spanish building companies and developers rolled into Warsaw to size up the potential in the local real-estate market last week.
Central Europe Meeting Point, an international real-estate symposium and exhibition, attracted more than 100 Spanish building companies and developers to Poland last week. This is the first time the event has been held in a non-Spanish speaking country.
"So many Spanish companies had never before crossed our borders for an international real-estate meeting," says Enrique Lacalle, chairman of the organizing committee for Central Europe Meeting Point. "[Spanish investors] are now finding out about Poland. They have the knowledge, they have the financial resources and the will to be here," adds Josep M. Pons, managing director of Central Europe Meeting Point.
Domestic gloom
On their domestic market, Spanish companies have enjoyed strong growth thanks in large part to a favorable real-estate cycle. In the last few years the Spanish market observed an increase of around 600,000 new apartments per annum. Now, with more difficult market conditions on the horizon, Spanish developers are looking for new solutions. In order to insulate themselves against the perceived downturn and maintain their growth, Spanish companies have gone international in the hunt for property profits. Central Europe and Poland, in particular, are proving very attractive for Spanish tastes.
Poland is the largest country in the CEE region with a large real-estate market, but Spaniards still remember how prices grew after Spain joined the EU and developers are certain the situation will be replicated in Central Europe. "Poland and generally Eastern Europe is the place where most real-estate activities will be carried out throughout the next years. In Western Europe such enterprises will also take place, but there will be far more. Thanks to accession to the EU, the countries will get European funds, which will foster infrastructure and industry and consequently real estate: office, industrial parks, hotels, retail and residential. However, yields and capitalization rates in Poland are still higher than in any other part of Europe," says Pons.
Wide support
Maria Antonia Trujillo, the Minister for Housing in the Spanish Government, estimates that so far Spanish companies have invested some EUR 600 million (zł.2.3 billion) in Poland, which is the highest figure in the CEE region. The largest Spanish companies on the Polish market are Ferrovial, Acciona (formerly Mostostal Warszawa) with Acciona Nieruchomości (formerly Mostostal Invest), which belongs to Acciona Inmobiliaria, as well as a company established by Prokom Investments and Fadesa Inmobiliaria.
Millions to come
Although it is difficult to make an exact calculation, the organizers claim that the estimated turnover of real-estate deals carried out during Central Europe Meeting Point 2006 could exceed E300 million (zł.1.2 billion). Spanish investors are mainly interested in the residential market, with some looking to develop hotels and a few others focusing on industrial developments.
The Spanish companies already present on the Polish market emphasize the low number of prospective plots, mainly because very few cities have spatial development plans. Michał Borowski, the chief architect at Warsaw City Hall, says that the development plan of Warsaw, a document presenting the opportunities for the future development of the city will soon be disclosed.
According to Pons, the plan along with an improvement of the quality of management within the public sphere and the simplification of the legal and administrative procedures, should keep Spanish investors and developers here for many years to come.
11th May 2006
Salaries in Poland will catch up with the EU average
From Poland A.M.
Polish employees earn three times less than their colleagues in the 'old' EU15 member states.
The gap, however, is going to shrink, as the opening of EU labor markets will force Polish employers to pay workers more in order to keep them in the country. "The opening of EU labor markets will result in the increase of average salaries in Poland," says the managing director of HRK Partners, Piotr Sierocinski. "If specialists are missing in Poland, salaries will grow automatically to attract them back."The HRK analysts forecast that by 2010 salaries in Poland will be growing by between 4.5 and six percent a year. How fast Poland will catch up with the EU average will depend on Poland's GDP growth and the country's productivity. The Czech Republic, for example, is recording faster salary growth, but the country has also had higher GDP growth and inflation. (WBJ)

From Poland A.M.
Since the beginning of the year, prices of flats have increased by more than a dozen percent.
Experts believe that this is not the end. We are building too few and there is also demand from people who are buying a flat as an attractive investment. Flat prices are increasing quickly. The average cost of 1 m2 is now almost zł.5,500 while this was just zł.5,000 at the end of last year. Prices have gone up by a fifth in Wrocław, while flats in Kraków and Gdansk cost 10% more than they did last year. Developers are raising prices every few weeks and owners of flats on the secondary market are raising the price even every few days. "This madness is almost comparable with how it was after our entry to the European Union," said Jarosław Krajewski, a property agent from Poznań. (Rzeczpospolita, p. 1) S.D.

15th May 2006
House hunting
From Lokale Immobilia
With apartment prices in Poland expected to continue to soar for at least the next year and analysts appraising the country's residential market as the most attractive in the region, investors - and not just home buyers - are turning to houses and apartments for a stable profit.

Lokale Immobilia looks at the advantages and dangers of investing in the residential market, and asks the experts what investors should be looking for

Investors, both Polish and foreign, have already smelled blood in the residential market in Poland, with flat prices continuing to spiral upward. In one month alone - from February to March - the average price per sqm in Warsaw grew by 8.6 percent to zł.5,415, whereas Wrocław recorded 4.2-percent growth to zł.4,548. Over the course of the fourth quarter of 2005, the average price per sqm in Warsaw grew by about 6.3 percent, and the year-on-year growth was 12.4 percent.
Safe bet
Examples of some attractive developments which generate value themselves are also telling. The price growth in Marina Mokotów in Warsaw between November 2005 and April 2006 was 48 percent. During the same period, the price growth in Miasto Przyszłości (The City of the Future) in Kraków reached 64 percent.
Price growth, however, is not the only factor to attract investors to the housing market. Investing in flats is much safer than playing the stock market. Secondly, one does not need to be a millionaire to successfully invest in real estate. Banks, being now extremely open to the residential market, offer easy access to mortgages. Houses also offer guaranteed liquidity - flat buyers will always be there, as shelter is one of the basic needs humans have to satisfy.
Exercise caution
Investing in flats also poses pitfalls, especially if the investor is an amateur or pioneer on the market. The president of RedNet Property Group, Robert Chojnacki, points out that investors have to be aware that flat prices are not growing in every sector. "The threats of investing in flats include choosing a developer with a bad reputation or the wrong development," he says, stressing that these risks result from lack of knowledge of the market. "Inexperienced investors have to be careful about the threats connected with signing contracts as well as about other legal aspects, such as a title to the land or building permits."
"Why should somebody buy a flat from me in the future at a higher price?" is the question an investor must ask himself in the first place, according to Chojnacki. The most obvious reason is that a flat is a product as any other, prone to the demand and supply interdependence mechanisms. The current trend of demand outstripping supply is expected to continue for the next few years, especially since the bulk of Poland's existing dwellings are the panel blocks of flats built in 1960s and 1970s, whose technical lifetime is an estimated 60 years. Additionally, society, especially in bigger cities, is getting richer and thus, wishes to improve its living conditions. At this point, however, Chojnacki warns that the levels of demand and supply are not the same everywhere, which investors have to take into consideration when choosing the place for their investment.
Golden rules
The golden rules for investors are to select locations with limited supply, such as Sopot, which is limited by the sea, a national park and Gdynia. The area for potential supply thus being limited makes Sopot one of the most expensive cities to live in. "Avoid locations that could increase supply quickly, such as Wilanów in Warsaw," advises Chojnacki. "Look for locations with high demand," i.e. areas with infrastructure investments. Warsaw's Ursynów district is such an area, where flat prices grew after the underground linked the area with the city center. Further factors that are likely to boost demand are the changing image of an area, such as revitalization projects popular in Łódź and Kraków, and job opportunities created by new investments, like in Wrocław. Investors should also avoid low-demand locations, such as Katowice and Łódź, where ten years ago lack of jobs created negative migration.
Best locations
According to Chojnacki, the ideal location for investments at the moment is Wrocław. In the future, places such as Poznań, Tri-City, Łódź and Katowice will gain importance. When it comes to segments with the highest potential of growth in Warsaw, the City Center, Mokotów, Ochota, Żoliborz and Ursynów are best for short-term investment, Wola, Bemowo, Bielany, and Włochy are good in mid-term, whereas Wilanów, Ursus, Białołęka and Praga Północ are ideal in long-term perspective.
Rate of return
Foreign analysts see Poland as the most attractive country in the CEE region. "The reason why investors want to invest here is that the markets present good potential return at a relatively low risk," says Neil Lewis, a specialist on investment in foreign residential markets from Property Securities. "Poland has probably the most sophisticated financing system in the region," he says. He predicts that Poland and the whole region will soon see a boost in rental markets. "Banks will shortly no longer offer 100-percent financing for house buyers and people will have to move to the rental market."
How long will Poland be a paradise for investors? Lewis stresses that the residential market in Poland has just emerged, with some areas developing faster than others. "The price growth we have seen in the last few months will be observed in the next 12 to 18 months but will not be there for ever. In the next five years investors will still be interested in Poland."

15th May 2006
Laughing all the way to the bank
From Warsaw Business Journal
by Katarzyna Dębek
Polish lenders have posted impressive Q1 results thanks to the boom in mortgage and consumer loans.
Recent data published by the General Inspectorate of Banking Supervision (GINB) reveal that the Q1 net profit of the Polish banking sector amounted to zł.2.97 billion, which is a 42-percent improvement on the same period last year. The industry's joint revenues jumped to zł.8.67 billion, up nearly 15 percent year-on-year. The results were to a large extent boosted by rapidly growing mortgage and consumer loans.
The figures come in the middle of the reporting season and last week four big lenders published their results. Poland's biggest bank, the state-controlled PKO BP posted a 16-percent rise in first-quarter net profits, beating market expectations. The lender's net profit reached zł.482 million.
Bank Pekao, owned by Unicredit, also announced on Friday that thanks to the high demand in loans and tight cost control, the company managed to improve its Q1 net profit by 27 percent year-on-year to zł.418 million.
In spite of uncertainties related to the merger of Pekao and BPH, BPH also managed to improve its results. The bank's net profit reached zł.285 million, almost 40 percent more than in the same period last year.
"The first quarter was simply fantastic and our April results are also excellent ... I expect our full-year results to be better than those in 2005," BPH CEO Józef Wancer told Reuters. "The present situation ... does not disturb us in carrying out our normal business operations. We will maintain our budget, our strategy and our tactics," he added.
According to analysts, uncertainty over the future of BPH might be a cause of concern for its clients, confused about whether they will be transferred to the merged Pekao-BPH entity or stay in BPH. However, Wancer assured investors that he is going to stick to his expansion plans in spite of the threat.
The fourth lender that published its Q1 results last week was ING, whose net profit increased by 19 percent to zł.162.4 million. "It's worth noting that our sales of mortgages almost doubled. A couple of weeks ago we also launched our first branch operating on the basis of a franchising agreement. This is one of the ways to strengthen the bank's sales potential," Brunon Bartkiewicz, ING's CEO said.
In Q1 this year Polish lenders granted loans for an overall amount of zł.269.1 billion. (Reuters)

15th May 2006
Polish borrowing
From Warsaw Business Journal
Poles are indebted to banks to the tune of of zł.150 billion and the value of loans granted is increasing at 20% annually.
It will continue to grow, as even in comparison to other CEE countries indebtedness is low. "The real boom will begin following the entrance to the eurozone," said Maciej Reluga, chief economist of BZ WBK. (Poland A.M.)

5th June 2006
From rags to riches
From Lokale Immobilia
The decreasing number of plots in the most attractive areas of major cities coupled with the insatiable demand for new apartments is forcing developers to invent new ways to satisfy hungry buyers.
With this in mind, developers have begun investing in old tenements or post-industrial areas and transforming them into new, posh apartments located in the heart of the city.
Already very popular abroad, especially in large European cities such as Paris and London, where the supply of empty plots in the city center is very limited, the revitalization of old tenements and post-industrial areas is making a splash in Polish cities. Developments such as Rezydencja Foksal, Mokotowska 59, Złota 44, Rezydencja na Wspólnej in Warsaw, and U Scheiblera in Łódź are just a few examples of the latest building fashion.

Across Poland there are areas with old, frequently deserted tenements that scar the cities' landscapes. Towns have much to gain from such redevelopment projects, as they revitalize downtown areas that over the years have lost their glamor and sometimes even their good reputation. Now, many such buildings have been fully refurbished and restored to their former glory. By renovating old tenements, developers get access to a prime location. Usually the refurbished complexes offer a small number of apartments, but there are also projects such as U Scheiblera, which will provide about 400 luxurious lofts.

Difficult operation
Buildings with individual historic charm have their admirers everywhere, but it takes a hefty chunk of both time and money to complete these revitalization projects. The ownership structure of an old building is often very complicated (if it's in private hands) and there may also be claims registered on such properties (if they belong to the city).

"It's not easy to purchase such buildings [because there are] many legal complications. Old houses usually have tenants that need to be relocated before you really start the construction works. You never know what surprises are hidden below the old plaster, so you must budget for large 'unexpected' costs. The buildings are often listed or under the supervision of the conservator's office, so there are certain architectural restrictions. It's very difficult to organize a construction site in the crowded and often narrow streets of a city center," says Meir Stambler, the president of Maripol.

Jacek Żurawski from Yareal says that the developer has to take into account the fact that frequently works are done next door to existing tenements, and not on a large plot. Joanna Napieraj-Berlińska from Opal Property Developments (OPD) adds that such works have to meet additional security requirements.

"Before the construction is launched the investor has to carry out historical and architechtural explorations, then it is obliged to act according to the advice given by the conservator's office. Finally, the developer has to use materials and technologies that will not destroy the structure of the historical building. These non-standard solutions bring additional costs," says Napieraj-Berlińska.

Jeroen van der Toolen, managing director at Ghelamco, believes it's cheaper to build a new building than to renovate and renew an existing building, which also takes more time. Jean-Claude Moustacakis from Orco Group says that luxury projects need to provide a luxurious standard, as expected by future tenants. All this makes such investments more expensive than developing budget-standard investments.

Urban lifestyle
Cities, especially in this region of Europe, are developing very quickly. People are becoming more active, more mobile, and they also expect more from a city's architecture.

"Such complexes perfectly fit the lifestyle of today's city dwellers and that is why we believe they can only be seen in a positive way. People like to live in buildings with character in nice locations," says Ghelamco's van der Toolen.

He adds that such historic projects are popular because they often provide excellent quality amenities, such as swimming pools, small gyms and parking, which are difficult to find in many current city-center projects. Therefore, developers do what they can to provide the largest number of facilities. In such complexes, prospective residents can take advantage of a whole range of benefits offered by the city, including having parks, restaurants and the trendiest clubs in close proximity.

Expensive tastes
"The typical customer [for such apartments] has a very active lifestyle, travels a lot and is focused on his or her career. Therefore, in private life, our potential customer wants to be surrounded by high quality, luxury goods and high-standard amenities to make his or her private life comfortable. He knows exactly what he expects, and we are aware of the fact that we need to provide top quality to meet his or her expectations," says Orco Group's Moustacakis.

U Scheiblera has already attracted over 500 prospective buyers, including artists, architects, managers, politicians and university professors, although the sale of apartments won't start until July. Some customers are buying the apartments as an investment, and some are just attracted by the impressive, downtown address. Other, such as lawyers, intend to use the apartments as offices.

Baby steps
Kazimierz Kirejczyk, president of REAS Consulting, says that this niche market is still too small compared to new developments. "It is such a narrow market, we aren't analyzing it yet. So far it was about 200 apartments per year. Whether it will change depends on the specific city," adds Kirejczyk.

Ghelamco's van der Toolen agrees that there are not many such developments existing in Warsaw, but sees growth. "Five years ago people wanted to live in new, modern buildings. Now more and more people are looking for historic buildings with character," says van der Toolen.

Maripol's Stambler says it is still too early to talk about a new trend: "This segment will become more and more interesting both for the developers and for the customers, because the available downtown locations are shrinking every day. Besides, there is a growing group of wealthy customers who are looking for something unique."
Global investor confidence in CEE countries soars with Poland leading the pack
16 May 2006
Poland shot up seven places in the Foreign Direct Investment Confidence Index compiled by AT Kearney, and now ranks fifth in the world behind only China, India, USA and the U.K.
This indicates that Poland can expect to see continuing increases in the investment it attracts, even as the battle to win FDI among emerging markets intensifies.
And the formula for property investors is a simple one -
FDI equals jobs and jobs equal more people with access to finance and that means greater demand for better standard properties.
This is what is driving the creation of the CEE's aspiring middle classes - the most dynamic sector of the residential property market.
To compile the index over the past seven years, AT Kearney has quizzed CEOs, CFOs and other key decision makers of the world's biggest 1,000 firms about their views and their investment intentions on the 68 countries that receive around 90% of all global FDI. The companies themselves represent around 70% of global FDI flows and generate more than $27 trillion in yearly revenue. These companies represent all major regions and sectors.
Old and new Europe
The survey highlights the wide gulf in appeal between the emerging markets of new Europe, in particular the new EU members and aspirant EU member states, and the more developed economies of Western Europe.
Only the UK, in fourth place (unchanged) in the index, and Germany in ninth place (down from fifth place), make it into the top ten. Not since 1999 have so few Western European countries been in the top 10 FDI locations.
France moved from 6th to 14th, Italy went from 9th to 19th, and Spain dropped from 13th to 17th place. Manufacturing investors reported the strongest decline in preference for Western Europe and are looking instead to China, India, Brazil, Russia, Poland and Mexico.
By contrast, the report states: 'In 2005, China, India and Eastern European countries reached new heights of attractiveness as destinations for FDI as they competed for higher value-added investments, including R&D. '
Besides Poland's rise up the rankings, other notable placings were Russia (6th), Hungary (11th), the Czech Republic (12th), Turkey (13th) and Romania (25th) - all of whom rose strongly in the rankings.
Communications looks set to be key sector
And the most bullish investors in Central and Eastern Europe are those in the communications industry, ranking Poland 1st, Hungary 2nd, the Baltic States 4th, the Czech Republic 5th, Slovakia 7th, Turkey 9th and Croatia 15th.
Confidence among telecommunications investors has been boosted by liberalisation of the industry in many of these countries as well as deregulation, low penetration of mobile phones - and growing spending power among the populations of the CEE states.
In this category, Poland ranked first in the world. This signals big growth to come in this sector.
Poland for off-shoring
The report also highlights Poland's growing appeal as a location for business process off-shoring (BPO). This usually translates into service or call centres.
Poland also holds second place as the most preferred location for investments in the electric and gas sectors, and the third place in agricultural, forestry and fishing.
CEE countries also score well among investors seeking research and development locations (R&D), mainly because they offer a combination of strong scientific and engineering skills along with low labour and operating costs.
33% of investors have plans to invest in CEE countries within the next three years
Nearly one-third of global investors are planning R&D-related investments in central and eastern Europe over the next three years.
US investors ranked Poland seventh most attractive FDI location, while European managers placed it third.
FDI into Poland was $7.724 billion in 2005.
Poland's exclusive position
By moving into fourth place on the list, Poland enters an exclusive FDI country club - the first five most popular FDI recipient countries receive a full 35% of all global FDI
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Than you Colin,

a lot of stuff, but very interesting.

Jost
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Hello Chris,

once again: Thank you very much for the stuff.

We and our partners have actually done it. We have bought 24 plots altogether. These are located on the island of Sobieszewo (germ. Bohnsack); about 15 minutes walking distance to the beach and 18 km from oldtown of Gdansk.

As it will be difficult for a citizens of other EU-countries until May 2009 to owe real estate in Poland we had to register a business with the subject of improvement of touristic activities.

The notary public had pointed out that we won't have to expect any difficulties as long we are „active“ in any way in relation to the real estate in Poland; i.e. we must not cause the impression that we keep the real estate just for speculation reasons. This just to make clear, that the main focus of our business may change in future.

Therfore we would like to ask you, if you have any recomendations, how to develope the plots (with a size 500 to 800 square meters each). The houses must not be higher than 11,30 m.

So our current plans /thoughts are as follows: Bungalows with a groundsize of 120 square meters (3 bedrooms, 2 bathrooms, a big eat-/livingroom, kitchen, very small workingroom und – as the plot is close to the river Vistula – no cellar. The bungalow should be useable for handicaped people as well.

Do you have any experiences with the prefabricated house company Danwood ( respectively polish unibud)?

Or do you have any experiences with other building companies „stone by stone“ or prefabricated house? If you know anyone who might be interested in –
possibly a long time – renting of a house please let me know. This would enable us to take their imaginations into our considerations, when planing the house.

Thank you very much for sharing your thoughts with me.

I look forward to hearing from you.

Best regards

Jost

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