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Tri-City for Pole Position

A trio of Polish coastal cities - Gdansk, Gdynia and Sopot - currently represent some of the best property investment opportunities available in Eastern Europe. The three cities, collectively known as Tri-City, offer excellent quality of life and value for money when it comes to property.

Tri-City is currently attracting plenty of investor attention. Major investment in transport infrastructure has recently taken place in the area and Sopot will receive a new marina in two years' time. As one of the host cities for the Euro 2012, Gdansk is set to resurrect its international profile and receive record numbers of tourists.

Gdansk found itself in the world spotlight in the 1980's when the city's trade union Solidarity symbolised Eastern Europe's bid to break free from communism. Since then, the port has moved out of the global limelight and carried out some serious development. The result is a buzzing city with some high-end touches. A Radisson Blu Hotel recently opened in the heart of the city and the avant-garde Sea Towers, the highest building in Poland outside the capital and home to luxury penthouses, is well under construction.

Sopot, often referred to as the ‘Pearl of the Baltic', is a favourite seaside spot and as such represents excellent holiday rental potential. The resort, home to a Sheraton hotel due to open luxury spa facilities this summer, has Poland's most expensive property market after Warsaw with resale properties on the coast attracting prices between €1,800 and €3,500 per square metre.

Tri-City's housing market has been less affected by the downturn in the Polish property market than other areas in Poland, particularly Warsaw and Krakow, both subject to huge price adjustments over the last year. Tri-City's new-build market saw a fall of around 12% in 2008 with the resale market holding up relatively well. The Polish zloty has depreciated by around 20% against the euro in the last 12 months meaning that Polish property represents excellent value for the European buyer purchasing in euros.

Tri-City has a buoyant rental market with prices remaining more or less stable during 2008. Monthly rentals for two-bedroom apartments range from €300 to €475 with those for three bedrooms between €375 and €800. City-centre and beachfront properties attract the highest rental rates.

Tri-City has attractive surroundings, unspoilt beaches and excellent public transport, which translate into top quality living. Unsurprisingly, the area is popular with Poles and foreigners, both for relocation and permanent residence or holidays.

Unlike many of its EU counterparts, Poland is weathering the global downturn relatively well. The International Monetary Fund has forecast that outright recession will be avoided by Poland, a prediction backed up by GDP growth figures for Q1 this year. Year-on-year growth showed an increase of 1.9%, one of the best in the EU and the quarter-on-quarter rise was 0.4%, way ahead of most countries' economic performance this year.

With Poland performing well economically, Euro 2012 well visible on the horizon and a highly favourable exchange rate for the buyer with euros, this may well be the time to take a look at Tri-City for property investment.

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