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Competition Hots Up in the Polish Mortgage Market

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Competition Hots Up in the Polish Mortgage Market

Data analyst and research company RNCOS report that the financial market in Poland is expanding rapidly, fuelling competitive mortgage products.

RNCOS report that Poland's mortgage finance market is to growth over 30% by 2011. The expected growth has been largely attributed to an increase in competition between Poland's mortgage providers and a marked rise in international interest for property in Poland.

Ken Thorkildsen, Director of Obelisk Private Finance, comments, "The RNCOS report - The Poland Banking Sector Analysis - predicts that the Polish mortgage market will reach €70 billion by 2011 as the market emerges from a historically stagnant period."

The growing choice of mortgage products lends itself to an advantageous property market and consumer borrowing in Poland, enticing investors to move into the profitable market. Such financial products will also assist investors leveraging potential by allowing them to borrow at competitive rates to fund further investment projects.

As an emerging finance market, the sector is set to evolve from its negligible starting block of only 6% of total GDP for the Polish economy. However, Polish banks now have a huge opportunity to not only expand the range of products that they offer, but they will also be able to command a place in the world's financial markets with the potential of increased interest from big investor players.

Huge growth in the Polish property investment market coupled with a shift from the local market buying as opposed to renting property is a clear sign that incomes in Poland are on the increase. RNCOS also report that the boost to mortgage financing will allow Polish banks to hike lending interest rates that will eventually increase the interest-based income in future.

A Senior Research Analyst at RNCOS states the mortgage lending market in Poland is intensely competitive. Many smaller banks are offering strategic products with profit on mortgage loans as little as 1%. In addition, banks are offering finance to cover other expenses incurred by their customers, such as solicitor's fees and property valuations.

Furthermore, the report also provides forecasts on various segments of the Polish banking industry, such as assets, commercial bank loans, personal loans, corporate loans, consumer loans, banking deposits and the credit and debit card market.

Ken Thorkildsen adds, "The analysis provided by RNCOS gives a realistic insight into the Polish banking industry, identifying growth, drivers and any challenges faced by property investors. It also highlights that the Polish property and investment market is flourishing and will continue to do so for some years to come."

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