Poland

By far the largest of the 10 countries that joined the European Union in 2004, Poland is becoming an increasingly important player. The economy has been growing well, inflation has been falling and the currency, the zloty, has been one of the strongest in the world in recent years. There has been considerable foreign investment, both in the car industry and in the financial sector. Given the size of the Polish market, a number of multinationals naturally choose Warsaw for their regional headquarters. Property prices surged in the run-up to EU entry in May 2004 and have been increasing more modestly since – but an annual 10% looks achievable for the near future. There is still potential for quite substantial gains if you leverage your investment; both Polish banks and the local subsidiaries of foreign finance houses are happy to lend to foreigners, offering as much as 80% loan-to-value. Warsaw, the capital, is not one of the most beautiful cities in Central Europe, but is attractive for investors, because of immigration from elsewhere in the country, which provides a pool of potential renters. Picturesque Krakow is also of interest for long-term rental as well as holiday lets.

Read part of the Poland chapter

Buy the book at a special offer price