New research from German property company IVG shows that Poland remains highly favoured among international investors and is set to increasingly outperform its Central European neighbours.
New research from German property company IVG shows that Poland remains highly favoured among international investors and is set to increasingly outperform its Central European neighbours.
The report, entitled ‘Poland: Focal Point of International Investors’, cites two major trends which explain the country’s continuing appeal for investors. The first is Poland’s steady pace of growth: in 2010 the country enjoyed a 3.8% expansion in GDP and in the third quarter of 2011 it saw year-on-year GDP growth of 4.2%.
The second trend uncovered by the survey was a perceived stability as a major reason for a buy recommendation. The Polish office rental market in particular is seen as a safe bet, with vacancy rates falling steadily to below 10% in all major markets since 2010. The rise in outsourcing by international companies to Polish firms has also contributed to the increasing maturity of the local office market, the report found.
The IVG report concludes that Poland’s success will continue, thanks to its moderate national debt and large pool of cheap and skilled labour. ‘The economic classification of Poland as a CEE country now seems to be outdated, as the individual countries of Central and Eastern Europe have shown different development patterns in the last two decades’, said Maciej Zajdel of IVG’s Warsaw arm.
