Polish property set for low-cost flight boom

As many as 14 new low-cost airline routes are set to link the UK to Poland in the next two months, spurring a property boom in the country.

Prices for property in the country are already 39 per cent higher within a ten mile radius of airports with low-cost carriers and this is set to increase, according to currency specialist HiFX.

Interest in the country has tripled since June, according to the organisation, compared to static interest in traditional markets in Spain and France.

And, while there are a number airline routes already in operation to Poland, more are set to join.

Ryanair is launching flights to Bydgoszcz, Lodz, Poznan, Rzeszow and Katowice in October, whereas easyJet will now fly to Warsaw, Gdansk and Krakow.

"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," HiFX director, Mark Bodega.

Increased rental yields are also a by-product of the so-called 'easyJet effect', and HiFX predicts rental yields to increase by 30 per cent in areas served by low-cost flights.

The organisation points to the example of Dordogne in France, where property prices have risen 157 per cent since low-cost airlines began flying there in the year 2000.

"Interestingly, the established, medium-distance destinations such as Cyprus and the Canary Islands, where the flight time is about four hours, achieve the greatest capital value premium because of the availability of low-cost flights," continued Mr Bodega.

However, HiFX offers a word of warning to 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," concluded Mr Bodega.