lodzinvest
21 Aug 2007
Real Estate / The current property boom in Poland is a bubble [342]
the discussion about yield does have a point, yet yield is not a fundamental.
there are some fundamentals which we must look at:
1) the cost of land: there is scarcity in good location city center makes. scarcity means more expensive.
2) the cost of labour is increasing everywhere
3) the cost of building is also increasing.
good developements in the city center are expensive to built and thus expensive to sell.
the discussion about yield does have a point, yet yield is not a fundamental.
there are some fundamentals which we must look at:
1) the cost of land: there is scarcity in good location city center makes. scarcity means more expensive.
2) the cost of labour is increasing everywhere
3) the cost of building is also increasing.
good developements in the city center are expensive to built and thus expensive to sell.