Polish Market Most Attractive

According to the Assetz consulting company, Polish has taken the lead in real-estate investments in the first quarter of 2007.

The Polish real-estate market has registered  a high boost of investments in the first quarter, concluded Assetz which follows the growth of prices of houses in quarterly intervals. 

Capital growth rate 33 percent 

This trend was supported by the capital growth rate of 33 percent, for which Assetz estimate that economic growth in some new EU members would continue to play a role in the growth of real-estate prices.

It seems that this year Poland will spearhead the groups of developing markets, with a strong growth of capital and an excellent local level of demand and investment, said Assetz’s CEO, Stuart Law.

The prices of real-estate in Warsaw are still among the lowest in Europe and the introduction of important industries in the city is attracting an increasingly younger and wealthier population. I expect this strong growth trend to continue, as well as a boost in the real-estate lease market, Law said.

Bulgarian real-estate market risky 

In the past three months, Germany has registered the lowest returns. Still, Assetz stress that after a 15-year period of stagnation, the Berlin real-estate market is finally starting to show signs of life thanks to the appearance of large companies that are drawn to low costs of establishing new companies and lower prices of office facilities compared to Munich and Frankfurt.

Bulgaria and France also have good standings in the category of yield from real-estate investments, marking a 50 to 60 percent return in the first quarter.

Assetz warn that the Bulgarian real-estate market is still fairly risky, considering the 6.75% growth of interest rates on mortgage loans in relation to the earlier 6.5 percent and average returns of only five percent.

Assetz follows real-estate market trends in France, Spain, North and South Cyprus, Florida, Bulgaria, Portugal, Poland, Italy, Greece, Turkey, the South African Republic and Great Britain.