Foreign developers flock to Poland for cheap land

They are not deterred by the increasing price of land and building materials or the lack of a labor force. Development companies from Spain, France, Ireland and Israel are the most active on the Polish market. According to Paweł Grząbka, managing director of CEE Property Group, there are some 20 large foreign companies in Poland and each invests around euro 100-300 (zł.400-1,200) million. The list of planned investments is imposing. Israeli company AFI Europe together with Macquarie Global Property Advisors will invest almost zł.1 billion in building a single block of flats in Wilanów, Warsaw. Israeli company Shiraz is going to spend $200 (zł.544) million on investments in the largest Polish cities. According to analysts the increasing number of foreign investors is pushing up prices. Foreign investors are willing to spend much more on land than Polish companies. As a result the flats they build are more expensive. Foreign companies are wiling to invest in Poland because a profit margin exceeding 20% and the low land price compared to the overall cost of flat building. (Rzeczpospolita, July 21-22, p. B1) M.M.