Warsaw's cooling off - why is this good news for property investors?

Warsaw's cooling off - why is this good news for property investors?
9th October 2007

By Anna Grybel, Property Market Researcher & Brett Tudor, Investment Analyst

Warsaw is the dominant, dynamic capital of Poland. Warsaw is also set to grow. It is still a relatively small capital city with only a 5% share of Poland's population choosing to live there, this is half the average 10% share found in other capital cities of equivalent countries.

The city has the lowest rate of unemployment (5%), the highest GDP per capita, the highest FDI inflow (Warsaw absorbs 30% of all FDI flowing into Poland) and the highest and the fastest growing wages (53% above the national level).

A cheap, well skilled, well educated workforce continues to attract foreign companies to locate their businesses in Warsaw. In addition the city benefits from Polish EU membership and the hosting of Euro 2012 will further boost the local economy. The EU has also decided to allocate €66.5bn of funds for Poland between 2007-2013 - this is the highest amount among all the accession countries that joined the EU along with Poland in 2004.

Euro 2012 is an opportunity for Warsaw to promote itself in Europe and more importantly to improve and develop the city's infrastructure this will include the construction of a second metro line, the renovation of railway stations and the extension of airport services.

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