• Basement level prices with an average of £930/sqm. Units starting at £37,006
• A third tier city with a massive housing deficit of 20,000 units - over 50% capital growth expected before completion in Q4 2008
• An average discount of 12% to market valuation. This equates an average discount per unit of £7,568
• Prime suburban location overlooking the Oder River and one of the largest lakes in Poland - Dabie Lake

Lake View offers investors a great opportunity to benefit from high returns and to enter a fast growing property market in Poland. The development is located right next to one of the largest lakes in Poland – Dabie Lake and just outside the city centre of Szczecin, a rapidly growing third tier city.

This deal has outstanding resale and rental value for investors. Its surroundings make it a desirable place to live where locals can also benefit from excellent transport to city centre just 10 minutes away by bus, car or train.

There is a first mover advantage for investors due to a now liberalised implementation of planning policies. According to a 2006 report by Szczecin city government, the housing deficit has risen to 20,000 units due to prolonged supply restrictions. Combined with an average 12% discount to market valuation makes this a great deal.

The first phase of this development was completely sold out within 12 months of launch showing massive demand for housing in the area. The developer is now interested in attracting foreign investors for the second phase.

The average price of PLN5,254 / sqm (£930), which is independently valued at 5,894 (£1,043) is much cheaper than other similar comparable cities such as Gdansk where prices are around PLN6,500 / sqm (£1,150/sqm) for new builds. Szczecin offers similar great capital growth potential with much lower prices.

In addition to the deficit, the housing stock is predominantly outdated. Only about 2% of the units have been built after 1990. This pace of construction is below the national average and means short supply, a bigger housing deficit and faster rising prices.

There is evidence of this growing demand in the form of a current new build price growth rate of more than 3.5% per month. According to the Szczecin city government’s 2006 report, the average per sqm price grew from PLN 3,800 (£673) in 2005 to PLN 5,000 (£845) in 2006.

The current high price growth for new builds of more than 3.5% is expected to continue well into the future as it will take a long time for the 20,000 unit housing shortage to be met.

This is a city with economic potential and high affordability. The city is home to the regional government of West Pomerania and the Naval Academy apart from several international firms providing local employment.

This development is due for completion in Q4 2008 which gives you over 16 months of price growth. The higher affordability and the demand-supply gap of 20,000 units means that more than 50% price growth is anticipated before completion.

This is a superb opportunity to enter a market at basement level prices. Szczecin is still lower down the growth curve of Polish cities and is just beginning to take off.

Investment Tools

• Poland Property Market Profile