Smart and Prosperous Investments in Realestate

Prices of plots and fields - elements of real estates from Poland

The last years in Poland the prices of grounds are increased with fast rythms. In regions with increased interest from the beginning  of 2006 the prices of grounds have shown increase up to 100%. Most persons are interested to build houses, because the creation of home is anymore much cheaper than  the purchase of apartment as for example in Warsaw.

The mean of prices of apartments is very high. In Warsaw for a square metre costs 7.098 PLN, in Cracow 6.755 PLN, in Wroclaw 6.198 PLN, in Trujmiescie 5.163 PLN, in Poznan 4.314 PLN while in Loytz 4.285 PLN. On the contrary the square metre of a house outside from the city with the plot it does not cost above 3.000 PLN.

 At the same time, the prices of grounds in the province increase also these. The difference in the prices between a house near  the city and a house in the city begins to decrease . And all these because are increased the prices of grounds. The causes of increase:

1. more individuals decide to buy ground for investment aims.

2. is increased continuously the interest from exterior investors, which buy ground near regions with detached houses.

This has as result  the number of free plots and fields to be decreased. If the increases are continued with this rythm in Poland in 7 with 8 years will reach the limits of European prices. A very  good example is that of Greece and concretely Athens. In Athens 25 years before a plot  of 3.000 sq.m., in distance of 25 kilometres from the centre, cost 40.000 Euros. Now it costs up to 3 millions of Euros!

In few years can the purchase of a plot outside from the city will  be the same with the purchase of apartment in the city. In December 2005 a plot 300 t.m. in Warsaw cost roughly 150.000 PLN, while now the purchasers can pay even double. The interest for such type plots is very big. In various suburbs of Warsaw the prices of plots and fields can reach in enough thousands of PLN. But also in other regions as in the Wroclaw the prices  are increased up to 50%. The offers are continuously  decreased and the preferential plots also.

 The most expensive building plots in Wroclaw are found in the southern part of city. The prices of Wroclaw  are increased particularly because the foreigner investors create there their companies. Cheaper plots are found in the north side of the city. Thus the better investments become in the southerner and in the northern part of the city because from there  passes the international street. In Krakow it is ,on the contrary, considered that the prices are not increased so much fast as in other places. By the beginning 2006 was shown an increase of 15% in the prices of plots. Nevertheless the pattern that is also in effect in the other cities is in effect and here ,that is the fact that people prefers to buy plots and to  build than to  buy an apartment.

 Still increases are observed also in the rural plots. Few years before the acquisition of field was a economic solution, now however the increase of prices has touched upon also this sector. In the 3rd four-month period 2006 the mean of prices of fields was 7.556 PLN for 1 hectar, that is to say 14% more from the 2nd four-month period 2006 and up to 35% above 2005. The most expensive fields exists in the prefecture Kujawsko-Pomorskie and in the prefecture Great Poland. As long as smaller  is the field so much more should pay no one in equivalence with 1 hectare. The increases of prices however cannot reach in that sector  the other European countries. According to research of Eurostate the price of 1 hectare rural ground in Germany in 2001 reaches on average 9,4 thousands of Euros, in Belgium roughly 16 thousands of Euros. The records breaks Holland where in 2002 it reached 37,5 thousands of Euros.   Also  the prices  will go  up because of the European taxes.