Today Poland is one of the fastest growing economies in Europe, offering a high standard of living and a promising option for investing abroad.
Today, Poland’s economy is growing at a faster pace than that of Germany, France, Spain and several other countries of the European Union.
What are the reasons for Poland’s success? Moreover, do we have enough reasons to assume that the positive growth trend of Poland’s economy will last for a long time?
Geographic location.
Poland is located in the center of Europe, bordering developed countries with access to the Baltic Sea. Poland’s convenient location makes it a priority investment destination for companies with a focus on Europe.
Political stability.
Poland is a democratic rule-of-law state. The political processes here are stable and predictable, which positively affects the stability of the zloty exchange rate, becoming a significant factor in attracting investment to Poland’s business.
Living standards and human capital assets
Another important fact for people interested in where investing money is that Poland belongs to the group of countries with the highest level of social development. According to a survey conducted by Ernst & Young, it also leads Central Europe in terms of optimism and life satisfaction.
High wages and mobility of the population, especially those under 45, create a high demand for rental housing.
The high standards of Poland’s educational system attract international students. Meanwhile, the IT industry and medicine in Poland are attracting new employees from Eastern European countries.
It is worth noting that the pandemic did not cause significant damage to the Polish economy.
The drop in Polish GDP due to the coronavirus was only -4.8% compared to the European average of -8.6%.
How has Poland managed to avoid large-scale crisis consequences?
Experts, in particular Maciej Reluga, Chief Economist at Santander Bank, point to two key factors:
- High level of economic diversification – there is not one dominant sector that could also be the most vulnerable due to a pandemic.
- The rapid reaction of the authorities to the crisis and the formation of an effective assistance package for entrepreneurs. In Poland, in comparison with other EU countries, state support is significant (about 10% of GDP).
What do all these facts mean in the context of answering the question “Is it worth investing in Poland?”
Firstly, the short answer is “definitely worth it”. Secondly, when studying the situation in detail, the priority direction for safe and profitable investment becomes obvious, namely, buying real estate in Poland.
Why real estate?
Even in spite of the pandemic, prices for property buying and renting continue to rise in Poland. This suggests that there is a stable demand.
The purchasing power of Polish society has remained quite high. Wages continue to rise, and in 2022 the forecast is for an increase of 7.5%.
Gremi Invest has an extensive practical experience in the Polish real estate market, so we can confidently say that buying an apartment in Poland for rent means that you can provide yourself with a stable source of passive income that you fully control.
What types of rentals provide a high return on real estate investments? Read here
