scorpio
4 Jan 2008
Real Estate / Poland property boom over???? [54]
Hi 'hello',
As much as one would like to believe and support the above statement, unfortunately, in today's Polish real estate market, the salary of a resident living in Poland is now a moot point. I say this because now in the EU we have the freedom of labor, goods, and capital. Since all foreigners can purchase flats in Poland just like a Pole can, this is a good example of this theory in practice. It is mostly foreign invesment and ruthless speculators which are responsible for the terrible flat prices in cities like Warsaw and Kraków, not local Poles. In fact, most Poles who work in Poland cannot afford these kind of prices. Poles that work in UK or Ireland for example, could. This was a grave error on part of the Polish government during the early days of democracy and EU membership, to allow unrestricted purchase of flats by foreigners (non-Polish citizens). Example: Irish banker sitting in his office one day is thinking to buy a flat in Warsaw. He takes a holiday and travels to Poland for several days, looks at a flat in Warsaw and bids a higher price than the Pole who wanted it, then buys it and goes back to his home in Ireland. This is a scenario only too common. The Polish government should have enforced restrictions on 'flats' similar to those of land/farm purchases. That is now water under the bridge and cannot be reversed. The same is already happening with farms and land but on a much smaller scale due to the helpful restrictions in place. When the year 2016 is reached, the market will be completely open, and prices will only escalate up until that time.
you only take the real estate prices on the West, but ignore average salary of Poles versus Westerners
Hi 'hello',
As much as one would like to believe and support the above statement, unfortunately, in today's Polish real estate market, the salary of a resident living in Poland is now a moot point. I say this because now in the EU we have the freedom of labor, goods, and capital. Since all foreigners can purchase flats in Poland just like a Pole can, this is a good example of this theory in practice. It is mostly foreign invesment and ruthless speculators which are responsible for the terrible flat prices in cities like Warsaw and Kraków, not local Poles. In fact, most Poles who work in Poland cannot afford these kind of prices. Poles that work in UK or Ireland for example, could. This was a grave error on part of the Polish government during the early days of democracy and EU membership, to allow unrestricted purchase of flats by foreigners (non-Polish citizens). Example: Irish banker sitting in his office one day is thinking to buy a flat in Warsaw. He takes a holiday and travels to Poland for several days, looks at a flat in Warsaw and bids a higher price than the Pole who wanted it, then buys it and goes back to his home in Ireland. This is a scenario only too common. The Polish government should have enforced restrictions on 'flats' similar to those of land/farm purchases. That is now water under the bridge and cannot be reversed. The same is already happening with farms and land but on a much smaller scale due to the helpful restrictions in place. When the year 2016 is reached, the market will be completely open, and prices will only escalate up until that time.