I have been offered a residential flat investment. The location is NIERUCHOMOSC: £ÓDZ, ul. OBYWATELSKA 106/108. Its an off plan investment. They are asking for 5700 Zloty per m2 plus an additional 28000 for the garage. They require 10% deposit now and the balance on completion.
I would be grateful if someone could advise whether this development is in a good location. Secondly is the price quoted per square metre reasonable for this location. Lastly does anybody know if it will be easy to let the flat when they are completed.
Hi Sidney. I know Lodz quite well and I know the area you are looking at. It is about 15 minutes taxi ride form the the main Piotrkowska Street which is where the main restaurants, shops and bars are. You are a similar distance form Manufactura - the main big shopping centre in Lodz. I would suggest that you would not want to pay anymore than the 5700 PLN /m2 given where it is and the 10% deposit and balance on completion is not unreasonable. The garage price is about right. Lodz is changing and re-development will start at the centre of Lodz and work it's way out. You don't have to travel very far out from Lodz to see that areas need re-generating. This will happen but it will take a while. Personally I would try and find something closer to the centre or in a better area. It may cost more but the key to all investments is as the old saying goes, location, location. Even more so if the economy turns down. Long term I believe Poland to be a good investment.
I have to agree with Neil63. I've been looking a lot in Lodz lately and everything is judged by proximity to Piotrakowska, so be careful paying relatively high prices if you're not within walking distance to Piotrakowska. I think 6-7,000zl should get you a much better investment with higher rental yields and resale potential.
