Investment Property - Gunnery Lofts

Original Investment Summary - 02/08/2007

Unique lofts in a listed military building on the edge of Gliwice’s Old Town
7.2% discount on developer’s list price
Payment terms of 10/90
Potentially 30% capital growth in the 12 months before completion (expected July 2008)
Flexible open plan layout allows a tailor-made unique design by either increasing the number of bedrooms or reception areas*

These unique lofts are in a listed military building on a small former army compound just five minutes' walk from Gliwice's Old Town and offer investors a fantastic opportunity to buy below market value in a high growth area.

It has taken 12 months to get planning approval to convert this former granary into lofts as the City Council is keen to protect and retain its very limited number of old buildings. Many older buildings were destroyed during the war or have fallen into disrepair so it is unusual to find a building like Gunnery Lofts in such excellent condition.

As a consequence, this is the first loft development in Gliwice which has the added attraction of using an unusual building which has an excellent position right on the edge of the Old Town where there are excellent transport links.

As units range in size from 90 sqm to 150 sqm, investors have the flexibility of increasing rental and resale value by changing the room configurations and increasing the numbers of bedrooms by adding new partition walls, at a later date, to the open plan living areas.

Gliwice is classed as a third tier city but its booming economy will ensure it will soon move up from its position as an emerging investment opportunity to a more developed second tier city. We are now starting to see property prices rise, thanks to high wages in the region which are second only to Warsaw, very high levels of affordability and a shortage of modern housing.

As this area has now evolved from former heavy industry to manufacturing and service-based industries, the wealth creation has now reached its critical mass and so the demand for modern, westernised homes far outstrips the supply.

Geographically, Gliwice is ideally placed within the Silesia Region to take advantage of the largest conurbation outside Warsaw which consists of 68 towns and cities with a population of 2.9 million.

Gliwice is known within the Silesia Region as the Green City thanks to its forests which, together with the attractive cobbled Old Town, makes this a very desirable place to live.

Thanks to its excellent transport links across the whole of the Silesia region, a development such as Gunnery Loft is very attractive to well paid workers in the growing service and IT industries. There is very little new build in the area because of a shortage of suitable sites, which is pushing land prices up.

* Plans need to be produced by an architect or licensed specialist for substantial changes, such as moving walls, and must be agreed with the developer or developer's agent.

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