Poland - Olechow Block 7 Ref:IPPPOL007

The Development

The project is located in Olechow district near Wojewódzkiego, Cynarskiego and Zakładowa street. It comprises of seven buildings with garages and will be created in a quiet area. There will be also a green belt and a parking lot. It is approximately 6 km from the city centre. Block 7 is now being released for sale and it contains 44 apartments including studios, one and two bed apartments. All apartments come with parking and a full fit out package. Full public transport facilities are located nearby. Block 7 is due for completion in March 08. The development is located 300 metres from the site of a new Dell factory which will be completed and shipping product in October 07. This factory will initially employ 3,000 people but is expected to grow over the coming years.

Price range from €58,026 to €126,117 (EURO prices approx.)
Apartment dimensions range between 53,2 and 69,49 sqm

Lodz Overview

The city of Lodz is Poland’s second largest with a population of over 900,000. It is located 137 km from Warsaw and a motorway will soon be completed to link the two cities. Upon the completion of the high-speed train between Warsaw and Lodz (with transit times of about 1.5 hr) it is anticipated that many people will live in Lodz and commute to Warsaw to work.

A scenario like this would lead to increased demand for residential property in Lodz. It has for some time been one of the poorer cities in Poland and has not seen the dramatic rise in property values as experienced in other cities such as Warsaw, Wroclaw and Krakow.

This however is beginning to change as due to the availability of an educated workforce we are beginning to see large multinational direct investment into the economy with companies like Bosch, Siemens, Gillette, and ABB already set up.

Investment Summary

• Low capital outlay – 30% deposit with 70% due on completion in March 08. Mortgages will be arranged for this amount.
• Lodz prices still low but starting to rise quickly.
• Up to 100% Mortgages available for the local market.
• Limited number of apartments available.
• Demand for housing in Poland will outstrip supply by 1.7 million units in 2006.
• Different capital appreciation reports forecast at 25% to 50% in Lodz for 2007.
• Strong rental demand due small numbers of new housing being completed.
• Reputable Developer - in the area for 15 years.

Completion Date: March 2008