Easyjet effect’ fuels property interest in Poland

No frills airlines are set to open fourteen new flight routes from the UK to Poland over the next two months, fuelling a surge in interest for overseas property in the country reports HiFX.

In its latest monthly global property hotpots, the currency experts reveal that interest in Poland has already tripled since July. The trend indicates that the Eastern European country will be next to benefit from investors tapping into ‘the easyJet effect’. However buyers are warned to think carefully about buying in destinations only served by one airline.

According to enquiries received by HiFX, interest in Poland as been increasing month on month. Enquiries relating to more traditional markets such as Spain and France remained the same July to August. New flight routes are launching in October and November to Bydgoszcz, Lodz, Poznan, Rzeszow and Katowice in Poland with Ryanair and Warsaw, Gdansk, Krakow with easyJet. These are likely to be fuelling the increase in enquiries as investors look to buy properties before prices shoot up as the country becomes more accessible.

Mark Bodega, Director at HiFX who help over 30,000 people buy property abroad each year explains: “The ease of access to a property has a real impact on its success as a holiday home as well as its future sale value. For example in Bergerac, in the Dordogne in France, property prices have risen by 157 per cent since 2001 when the new routes started flying there. Interestingly, the established, medium-distance destinations such as Cyprus and the Canary Islands, where the flight time is about 4 hours, achieve the greatest capital value premium because of the availability of low cost flights “

Established markets such as France and Spain remain popular as they are already well served by a range of airlines and a further six new routes being launched from the UK to France and Spain in coming months signals airlines’ confidence in the countries long term popularity.

Analysis of overseas property prices by Savills Research and Holiday-Rentals.co.uk, shows that the average price of a property located within 10 miles of an airport served by a low cost airline is 39% higher than that of properties within the same distance of an airport but without a low cost airline carrier.

Properties in areas served by budget airlines also command higher average rental values than those without. The additional rental yield can be as much as 30% higher for properties within 10-20 miles of airports served by ‘no frills’ flights.

However, Bodega warns potential buyers; “Remember many low cost airlines will have no problems pulling the plug on a service if they believe it is not making them any money. They can't afford to support an under performing route. Think long and hard about where you are going to buy and how easy it is to get to. If your property is only served by one airline to one airport then think about what might happen if the company goes bust and the next airport is four hours away? If you are looking to rent out the property for holiday lets, try and find somewhere that is easily reached by road and an alternative airline route, if not by boat or train as well.”

When buying property abroad or regularly transferring money to or from the UK to pay an overseas mortgage or repatriate rental income it is important to protect yourself against currency risk. HIFX offers a regular payment plan to protect people against currency fluctuations, by fixing exchange rates for between six and twenty four months. This ensures the same amount is debited or paid in each month and because everything is fully automated via a direct debit, customers have no need to speak to their bank each month.