Investment Property - Carpathian Way

Original Investment Summary - 13/09/2007 Investment Property Carpathian Way

Low entry price starting from a total price of £42,029
Average price per sqm PLN4,448/£759 including VAT
30% capital growth per annum expected over the next two years– property prices already jumped by 30% in 2006
Units have been valued 12% below market value
Transport infrastructure investment of €1.3bn will open up Rzeszów (pronounced zheh-shoof) as the gateway to Ukraine and Slovakia
Rzeszów will play a major role in the Euro 2012 football championships as the main transit city between co-hosts Poland and Ukraine

Carpathian Way is a fantastic opportunity to purchase high-growth, low-risk property in a city that has already seen extremely high levels of capital growth has been granted a large sum of government investment for infrastructure improvememts.

With a low entry level of £42,029 and a valuation at 12% below market value, this deal offers investors an exciting opportunity that has a ready made rental market and the potential to achieve exceptional return on investment.

Capital growth in the city of Rzeszów (pronounced zheh-shoof) soared to 30% in 2006. Yet this is only the start of its growth curve as there is still huge potential for further high capital growth over the next few years. The city is set to receive a total infrastructure investment of €1.3bn to upgrade the city’s roads, rail and airport to cater for the massive influx of visitors it expects during Euro 2012. Although the city will not host any games, its superb location next to the Ukrainian border means it will be the main border city during the games.

We see comparisons between Carpathian Way and Oak Terraces in Katowice. Prices in the Oak Terraces development increased 28% between Phase I and II. Capital growth potential in Carpathian Way is excellent as investors are getting into this market at a very early stage before it takes off.

Carpathian Way is just five minutes to the north of the city centre. This area is a popular residential area close to road links to Warsaw and Lublin and will be close to the A4 motorway, which is due to be completed in 2009.

The recent government investment is set to transform Rzeszow into a new European gateway linking Poland with The Ukraine and Slovaki, so location wise, the city is in a prime position and is already quoted to become Eastern Europe's new logistic hub.

Rzeszów is in the early stages of the property cycle where we typically have people that want to buy and lock in the high capital growth that we are currently seeing in the market. Nevertheless, there is a ready made student rental market in the city with a student population of 60,000. Additionally, migrant workers entering Poland from Ukraine and construction workers attracted to the area by the massive infrastructural projects underway will all need a place to rent in the lead up to 2012. We are confident that sufficient rental demand will exist by the time this development completes.

In addition, there is also a growing number of young professionals who are well-educated and earning good salaries, who want to move out of the old panalaks into modern apartments. There is also a huge demand for new build apartments especially as there were only about 1,100 built last year. For the investor, this means there is a tried and tested rental market right on the doorstep of Carpathian Way.

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