Poland moving into the ‘second phase’

Poland is on the verge of a new period of ‘stellar growth’, claims one company…

In its latest forecast, Property Secrets has predicted economic growth of around 5% for Poland this year, arguing that rates will probably ‘go higher in 2008 before any cuts will be seen as needed’.

Robin Bowman, Editorial Director for Property Secrets expanded on the prediction: “We see Poland's economy strengthening into 2009, as THE major economy in the region. Poland will continue to attract significant FDI to fuel growth of around 6% in 09.

“The return of hundreds of thousands of newly experienced, English-speaking economic migrants will act as a significant boost to the economy and will help cool wage inflation. And 2012 infrastructure investment is already taking place and the economic benefits of better road and rail links are going to be felt from 2009 onwards.

CEE ‘star performer’?

Mr Bowman continued: “The property market is experiencing a flat period after strong growth. This is inevitable and is the precursor to a second phase of stellar price growth as affordability driven by wages and interest rates and static property prices kicks in again.

“Meanwhile, the rental market strengthens and matures. Into 2009, Poland is likely to be a CEE star performer, mirroring the pattern of development we have seen in the Czech Republic - especially as a number of developers have put projects on hold or been unable to develop as quickly due to a slowdown in available funds for property developers. This will only increase pent up demand”.