With the West still reeling from the economic recession and government spending cuts, should savvy investors look to invest in Eastern Europe as a safe-haven for their foreign currency?

Eastern and Central Europe are holding up well in the face of tough global economic conditions. Estonia has experienced GDP growth of 8 per cent in the first quarter of 2011 and Poland is the only country in the EU not to have fallen into recession. Poland has experienced 8.1% economic growth in the last year. So is Eastern Europe the place to invest?

“Poland represents a safe-haven economy, which is politically stable and has a buoyant property market,” says Louise Reynolds of Property Venture.

Low labour costs, proximity to major European markets and an educated workforce make Poland an attractive investment opportunity for businesses. Poland is expecting GDP growth of over 3.5% in 2011. English is widely spoken in many of the country’s big cities and as a host for the 2012 UEFA 2012 Football Championships the country is investing heavily in improving country infrastructure, too.

Overseas property investors could do worse than investing in Poland, where there is a growing rental demand for property and capital growth can be achieved, too. Currently a city-centre development in Krakow offering pre-sale prices, offers yields of 8%. Prices start at £64,000 for a 1 bed apartment.

With a large expatriate population of working age Poles spread out across the world, investing in property in Poland now could pay-off in the long run too: many economic migrants do return home when their working life is over. So in 10 to 20 years time with a number of cash-rich expatriates returning home, property investors could expect to see the value of their Polish property investments increase considerably.

Transfer Money to Poland

If you are looking to invest in Poland, think carefully about how you will be transferring money to Poland. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers. So if you are sending money to Poland be sure to compare the market before you buy.