Polish Property - Is Warsaw Still A Good Place To Buy?

The proof is in the past. Take London for instance. Here real estate prices have doubled every ten years since the end of the Second World War. In the last decade they have even outstripped this average rising 116% between the start of 2000 and the end of 2007.

Perhaps when people say "Warsaw is over" they mean investors will not achieve a 100% capital gain return in one to two years anymore. If you do your research then this may also prove false; you should still be able to achieve fantastic capital gains if you buy wisely. Warsaw is no longer one homogenous blob, it is a metropolis of neighbourhoods and suburbs, each of which can rise or fall by differing amounts.

London's recent past shows how locations within a city can provide exceptional investments even when "the average" does not.

In Tower Hamlets, between 2001 and 2002, the values of many ex-local authority flats went up 65%. In Stoke Newington the Red Square development saw units that sold for 180,000 in the same year jump to nearly 300,000 twelve months later. In Shepherds Bush owners of two bedroom flats on the New Holland Green complex became 100,000 richer in the space of six months during 2007.

For experienced property investors, even after 60 years, London is not over but locations are crucial. The same is true of Warsaw because, like London, it is a sound city. Its economy is supported by a strong and ever-growing business and commercial district; its old town along with the diversity of the rest of the city are slowly being uncovered by tourists; its location by the motorway between Moscow and Berlin makes it ideal for logistics; its culture is diverse and the thousands of students and workers from all over the globe who descend there every year keep it fresh and keep it moving.

4 Factors To Consider for Warsaw Real Estate Buyers
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So where to look? The answer is not to point at a particular suburb but instead to consider the factors that will make an area come to life. This can only happen when the general population has been priced out of the city centre and it is safe to say in Warsaw this has already happened.

1. Transport
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The first factor is transport. No one wants to spend longer than they have to commuting so follow the tramlines or the bus routes with frequent services. Alternatively look for neighbourhoods, such as Bialoleka, with large numbers of new developments planned or under construction. In the future these will have transport links to serve the demand of the incoming owners and tenants.

2. Commercial Property
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Secondly look for areas with space for commercial businesses. It does not matter if they are beaten up cafes, junk shops or even derelict at the moment. What matters is that when young professionals move into an area there is room for coffee shops, delicatessens, bars, restaurants and other services. If an area does not have this but there are a great deal of residential blocks and complexes being built check if they have put aside space for these amenities.

3. Architecture
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Thirdly look up. Look at the architecture. It may be crumbling or decaying at the moment but when it is renovated will it look attractive? This factor is a little harder in Poland than say, the United Kingdom, as Poles show incredible ingenuity when it comes to re-cladding and re- facing concrete blocks.

4. Green Space
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Finally look for green space. It is not essential but if all the other factors are in place at more than one location then a park will be the bonus for buyers of the future.

Evidence of all four of the above can be seen in Mokotów. Streets were eyesores but they were within walking distance of the centre, there was plenty of space for the amenities young professionals wanted, the architecture could be returned to its former glory or there was space for modern blocks and large parks were just around the corner.

Trailblazers
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In the case of Warsaw price rises are far from over but for investors it is time to take a walk beyond the beaten track of the mainstream buyers and make an educated gamble in the suburbs. It is exactly what trailblazers did in the city centre fifteen years ago when most people wouldn't have given Warsaw a second look.

Warsaw has all the makings of a city for the smart property investor and over the coming years there may well be many who regret their decision not to buy when the margin for fast gains was so attractive. Don't you be one of them!

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