Investment Property - Berberis

Original Investment Summary - 06/09/2007 Investment Property Berberis

Fantastic rental potential with high demand in this area – Property Secrets has already let more than 90% of clients’ units in Marina Mokotów nearby
A potential capital growth of 40% before completion in almost two years time
One of the most experienced and largest developers in Poland – Budimex
Located in a desirable and prestigious location in Warsaw
Prices in the final phase of the neighbouring Marina Mokotów development are expected to launch at 10% more

Berberis, located in a highly desirable area of Warsaw, has been valued at 9% higher than the price of the 35 units we have on offer, representing a real Below Market Value opportunity - an absolute must in today's Warsaw property market.

The Warsaw property market has matured over the last two years. A strengthening rental market and a slowdown in the rapid capital growth of recent years is now in evidence, providing a less risky investment opportunity. Good capital growth (10-20%) and improving yields (maximum net 5% in Berberis) will appeal to any investor.

Situated in the popular district of Ochota on the border of Mokotów, Berberis is next door to one of our previous investments, Marina Mokotów. This is a desirable residential area of the city which has seen huge capital growth. Our units in Marina Mokotów have increased annually by 53% and the rental demand is also starting to rise, with more than 90% of our units in Marina Mokotów now let.

With only 10% down now, investors will enjoy a long completion time of up to two years and benefit from capital growth estimated at 40% before drawing on their mortgages.

The development is made up of 286 units in two buildings and will be completed in one phase by one of the largest developers in Poland, Budimex. Furthermore, we are the only investment group offering units in this development, reducing the number of foreign investors and increasing investment from the local market.

A combination of good capital growth and great rental potential is characteristic of the current Warsaw market. Added to this, a fantastic location, at the right price, long completion time and great payment terms, this deal is perfect for any property investor’s portfolio.

Different areas of the city are at different stages of the property growth curve. The city centre is very expensive and growth is likely to be lower compared to emerging districts to the west and east of the city for instance. However, the city centre still provides a good, low-risk, steady, long-term growth investment opportunity.

Ochota and Mokotów offer the best balance of risk and reward. They are expected to see healthy growth rates – if you can find the right deal – and are likely to become increasingly more established, mature areas of the city over the next few years. These areas are also seeing an increase in the demand for rentals due to their exceptional location close to the city centre with excellent transport links.

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