Hi Anna and Brett Thanks for a great summary. Some breaking news from Munich Expo... ... office rents in Warsaw are rising and vacancy levels have fallen again. The latest report from King's Sturge basically says that Warsaw is a fabulous office market for investors... ...and where there is rapid take up in offices, so there there are new jobs offered and demand for property - to let or buy - will be very strong. Another view coming from the show - and I agree with it - is that with the massive rise in prices in places like Poznan, Warsaw property actually looks relatively cheap! (Yes, I do think you can make comparisons of cities with a single country). Therefore, whilst I think Warsaw is taking a breather with a period of moderate growth, it will definately deliver great returns in the mid term. Cheers Neil

Hi, Thanks for the great article. I think the point made that Warsaw still looks cheap compared to other cities in Poland is true. And whereas some of those cities will hit a kind of ceiling so to speak, the sky will be the limit in Warsaw cos thats where all the quality knowledge based jobs are and will be. When you compare prices in Warsaw to other big cities in Europe, its still very very reasonable. Even though the prices soared over the last 2-3 years, they increased from a very low base. Anyone who has been to visit the city can see that it is a great mid-long term prospect. One of my best friends is Polish and he said that Warsaw will become more important for companies doing business with Russia cos as russia is very much closed to the west, alot of meeting and negotations take place in Warsaw. He also mentioned that due to its strategic position in central/eastern europe it will be an air-hub for the far-east in years to come and an ever more important business centre. L.

I think Prague is the better prospect- when you look at todays PS Prague offering it comes at comparable and even cheaper per sq m prices than some of the less glamourous 2nd/3rd tier Polish cities such as Lodz and Katowice. Maybe there is promise in Warsaw but there is real value still in Prague for a capital city, and I am keen on some more deals in the Czech Rep if somehow I afford it.

I thought I'd add my voice. I agree with this analysis, and also the PS analyses eslewhere that Poland is "taking a breather". I have, with another investor, about 100 units in different parts of Poland including tertiary cities. My view is that: 1. Warsaw and Krakow have seen price falls of about 10%, and now represent good value. They are, I fully agree, where Prague was a year or two ago. 2. I now find that Krakow prices are very competitive with Poznan. This rings alarms bells for me. I would be very careful investing in Poznan, or even in Lodz. They are about to cool in my view and have become too expensive. 3. For good long term investment, I would now say pick Warsaw, Krakow, Gdansk and Wroclaw. 4. For really exciting growth I must agree with Neil that one now has to look outside Poland. But for safe steady investment, Warsaw and Krakow would now do very well. Stephen Barnes

Stephen, The problem with Krakow right now is there is much similar property in the middle of the market that is overpriced. The lower and top ends of the market are still ok, but the middle of the market is overpriced. Sure, long term Krakow is still great, though short term i'd be wary of over paying. Agreed, Warsaw is still in a strong position. Wroclaw is simiar to Krakow in many respects, but i think it may be able to bounce back a little more quickly from its current lull than Krakow can. You could well be right, given that Poland still is a great bet medium/long term, now could well be the time to bargin hunting in Poland? Regards, Simon.

Simon, yes, I think there is some bargain hunting to be had, and I agree your comments. The fundamentals are good in Krakow (economy strong etc) just like Prague three years ago, but how long it will take to get past the "consolidation" phase is difficult to say. That applies to Warsaw too in my opinion, but probably one would expect Warsaw to be the first to pull away as part of a new, more muted, maturer phase of growth. Be careful with Lodz and Poznan I say! They will follow Krakow. The real question is where are the breathers taking place, about to happen, and about to finish! Stephen