Homes Abroad - Property Details

Property Details

Key Features

* Unique loft-style apartments, finished to a high standard throughout
* 5% deposit to be paid on siging PPA, 10% after 6 months then nothing more until completion in 2009
* 90% LTV mortgages are available at a current interest rate of 5.15%
* Zablocie is under-going revitalisation and economic development and is one of the only areas in Krakow to be fully master planned
* Krakow(?)s residential market has one of the highest levels of demand outside of Warsaw
* Housing shortage estimated at 50,000 units in 2006
* Savills report capital appreciation to be between 15-20%
* Successful transition economy with GDP growth at 6.5% in 2007
* Rapidly growing, confident banking sector

Description

Since gaining EU accession in 2004, Poland(?)s economy has gone from strength to strength, with GDP growth at 6.5% last year. Foreign investment has been actively encouraged by the Polish government, creating a wealthier domestic population, with unemployment at an all time low and increasing salaries. This in turn has led to higher aspirations and spiralling demand for high quality housing and a rapidly growing, but confident mortgage sector.

Krakow is regarded as the cultural centre by many Poles. One of the few cities not to be destroyed in WWII the historic part of the city is a UNESCO World Heritage site. Its economy is one of Poland(?)s success stories and has rapidly developed, creating attractive employment opportunities and a successful and booming property market. In 2006 it was estimated that there was a shortage of 50,000 dwellings and all new apartments to the market sold pre-completion whilst conservative capital appreciation of 20% was widely reported. Its residential market has one of the highest levels of demand outside of Warsaw.

Demand for high quality residential property, particularly those in a prestigious, attractive location are in high demand in Krakow. There is a shortage of supply due to the nature of many of the properties in the historic centre and due to the length of time is takes developers to obtain planning permission. This has led to spiralling prices in the prime area of the city and the Muncipality of Krakow(?)s decision to create access to new, attractive land plots for investment.

Location

Zablocie, a post-industrial area, has emerged as a prime area for development, particularly since the Kotlarski Bridge opened connecting Zablocie to the city in 2002. Zablocie is currently undergoing a project of revitalisation and economic development. A prestigious and historic area of the city, it is close to the banks of the Wisla River and just 1 km from the prime centre with good rail and future fast tram connections. Plus it is one of the only areas in Krakow to have obtained a full master plan ensuring that developers are able to obtain planning permissions. As such Zablocie will become a key area for new residential properties and much sought after by the increasingly wealthy population of Krakow.

Properties

The Zablocie Mill development will consist of 57 unique loft style apartments designed to blend in with the existing historical mill building, but also offer a high standard of living and spacious interiors with a postindustrial character.

As exclusive agents to the developer, Property Frontiers have negotiated an advantageous payment structure for the first 25 apartments sold at the Mill. Only 15% of the total purchase price is required before completion. Plus mortgages of 90% LTV are available enabling investments with ~£15,967.5 cash (plus purchase costs).