PL

PRS set to boom

Residential
The Polish PRS market is still in its infancy, but more players are declaring their desire to build portfolios of thousands of rental apartments, say Cushman & Wakefield

In Denmark, the PRS accounts for close to 50 pct of the annual real estate transaction volume. Its share in the investment market in our region is just under 5 pct, but it is likely to grow by 10 pct in the coming years. In Poland, rental apartments account for around 15 pct of the country’s total housing stock (2.3 million out of 14.8 million units). The development pipeline intended for rent is estimated at 35,000 units, of which around 10-15 pct will be delivered in the next 12-18 months. The PRS market is being driven by demographic, economic and social changes which are yet to be seen in Poland. Most residential developers are just beginning to consider PRS projects on the back of very strong apartment sales.

Despite the Covid-19 headwinds, housing prices on the new build and resale markets in Warsaw and the countries largest cities have not fallen. This is mainly because demand remains relatively strong. A substantial proportion of affluent people have bank deposits that are paying virtually no interest at the moment and are trying to protect the value of their capital by buying apartments with cash.
Mira Kantor-Pikus, partner, equity, debt and alternative investments, capital markets at Cushman & Wakefield.

Poland is one of the countries with the fewest rooms per person in the European Union standing at 1.1 compared to the EU average of 1.6. The number of apartments per 1,000 people is just 80 pct of the EU average. It is estimated that there is a shortage of about two million apartments in Poland to satisfy demand.

The PRS is on the radar for all mainstream global fund managers working with pension funds, insurance companies and sovereign wealth funds from Europe and the US, and APAC funds to some degree. It is not clear, however, how many will actually include Poland as part of their European allocations.
Jeff Alson CE Partner, Capital Markets Group, Cushman & Wakefield

Latest news

Investment & finance

CEE REGION EBRD sells Globalworth stake to CPI and Aroundtown

schedule 27 July 2021
Nathan North
deputy editor

The European Bank for Reconstruction and Development (EBRD) has agreed to sell its entire 5 pct stake in Globalworth Real Estate Investments to Zakiono Enterprises, which is owned by CPI Property Group and Aroundtown – a consortium that is currently engaged in a takeover bid for the Romanian-based company.

Warehouse & industrial

POLAND Hart Logistics leases 10,000 sqm in MLP Poznań West

schedule 27 July 2021
Opr./edited by NN

Polish warehouse property developer MLP Group is to build a 10,000 sqm facility for Hart Logistics in MLP Poznań West.

Office & mixed-use development

ROMANIA EUR 78 mln loan for One Cotroceni Park

schedule 27 July 2021
Nathan North
deputy editor

One United Properties has been loaned EUR 78 mln from a consortium of banks for its One Cotroceni Park office complex in Bucharest.

Warehouse & industrial

POLAND White Star Logistics launches first two projects

schedule 27 July 2021
Nathan North
deputy editor

White Star Logistics, a new joint venture between White Star Real Estate and fellow US investor Bain Capital Credit, is to develop its first two logistics centres – in Nowy Konik and Raszyn, on Warsaw’s eastern and southwestern outskirts, respectively.

Warehouse & industrial

HUNGARY Knapp buys former lawnmower plant

schedule 26 July 2021
Opr./edited by NN

Austrian automation company Knapp has bought a 30,000 sqm industrial plant near Veszprém from lawnmower producer MTD Hungary for an undisclosed sum.

Infrastructure

ROMANIA Strabag awarded EUR 111 mln Oradea contract

schedule 26 July 2021
Opr./edited by NN

Austrian construction firm Strabag has been awarded an EUR 111 mln contract to build a 19 km dual carriageway between Oradea and the A3 motorway.

Warehouse & industrial

POLAND Tenth building with new tenants for 7R Park Kraków

schedule 26 July 2021
Nathan North
deputy editor

Polish industrial developer 7R has brought into use the tenth warehouse building in 7R Park Kraków in Kokotów on the south-eastern outskirts of the city.

Office & mixed-use development

POLAND Koneser up for sale

schedule 26 July 2021
Nathan North
deputy editor

BBI Development and Liebrecht & Wood have started the process for selling their city-forming Centrum Praskie Koneser redevelopment project in Warsaw’s Praga district.

Office & mixed-use development

POLAND Colliers chosen for University Business Park

schedule 23 July 2021
Opr./edited by NN

Colliers has been chosen to be the exclusive commercialisation agent for University Business Park in Łódź, which is owned by Globe Trade Centre.

Architecture and urban planning

CZECH REPUBLIC Dutch duo wins Brno station design competition

schedule 23 July 2021
Nathan North
deputy editor

Dutch studios Benthem Crouwel Architekten and West 8 have won the competition to design a new central railway station for Brno, in what was the largest architectural competition in the history of the Czech Republic.

Green projects

ROMANIA NEPI obtains EUR 73 mln green loan

schedule 23 July 2021
Opr./edited by NN

The International Finance Corporation (IFC) has provided a provides a EUR 73 mln green loan to NE Property BV, a wholly-owned subsidiary of NEPI Rockcastle, for the development of sustainable real estate in Romania.

Office & mixed-use development

POLAND Warsaw office vacancy hits 12 pct

schedule 23 July 2021
Opr./edited by NN

At the end of Q2 2021, the total modern office stock in Warsaw amounted to almost 6.1 mln sqm, according to the latest figures from PINK (the Polish Chamber of Commercial Properties). The vacancy rate was up by 1.1 pp q-o-q and by 4.6 pp y-o-y to 12.5 pct.

Office & mixed-use development

POLAND Apple Museum at Norblin Factory

schedule 22 July 2021
Opr./edited by NN

A museum dedicated to Apple products is to open in the Norblin Factory complex in the autumn with 1,500 exhibits related to the development and evolution of the company’s technology.

Infrastructure

POLAND Warbud to build new Kostrzyn bridge

schedule 22 July 2021
Opr./edited by NN

Warbud is to rebuild a road bridge over the river Warta in Kostrzyn nad Odrą, close to the Polish-German border.

Retail & leisure

CZECH REPUBLIC Patria buys two retail parks

schedule 22 July 2021
Opr./edited by NN

Patria has bought two retail parks from Czech developer KPD – in Ovčáry just outside in Kolín in central Bohemia and in Mohelnice in the Olomouc district of Moravia.

Public buildings

POLAND Złota 44 sales hit record figures

schedule 22 July 2021
Opr./edited by NN

In Q2 2021, the value of the apartments sold in the exclusive Złota 44 residential tower in Warsaw was 28 pct higher than the previous highest figure recorded in Q4 2020.

Office & mixed-use development

POLAND City takes up 12,000 sqm in Widok Towers

schedule 21 July 2021
Nathan North
deputy editor

Warsaw city council has leased 12,000 sqm in the newly completed Widok Towers in the centre of the capital.

Office & mixed-use development

POLAND Axi Immo happy in Spektrum and Muchowiec

schedule 21 July 2021
Opr./edited by NN

Industrial and office agency Axi Immo has renewed the leases for its premises on the top floor of Spektrum Tower in Warsaw’s CBD as well as in Muchowiec Active Park in Katowice.

Office & mixed-use development

HUNGARY RTL to broadcast from Liget

schedule 21 July 2021
Opr./edited by NN

RTL Services, the business services company for Magyar RTL Televízió, has signed a long-term lease for space in the Liget Center and the Liget Auditórium office buildings in Budapest, which are owned by Wing.

Retail & leisure

ROMANIA Scallier buys Timişoara project for FunShop Park

schedule 21 July 2021
Opr./edited by NN

Polish developer Scallier has acquired a retail park development from Oasis Retail & Development Consulting in Timişoara for an undisclosed sum.

Latest in Residential

schedule 14 July 2021

Czech and Poland leading the way to PRS

Poland and the Czech Republic lead the way in the development of the PRS market in the CEE region, according to ‘The Private Rental Sector: Has it found a home in the CEE?' report published by Colliers in collaboration with Greenberg Traurig and Kinstellar.

schedule 07 July 2021

Echo with 907 apartment sales

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schedule 05 July 2021

Home rentals bigger than expected

Polish people are increasingly choosing to rent because home prices have reached sky-high levels, claims Cushman & Wakefield based on a survey by SW Research.

schedule 01 July 2021

Echo Investment to develop Boho

Echo Investment is to deliver two six-storey residential building on ul. Wodna in Łódź.

schedule 28 June 2021

Trei starts on two projects

Trei Real Estate has recently launched two residential projects.

schedule 28 June 2021

NREP adds beds to Polish sheds

Danish real estate investor NREP, following its takeover of Biuro Inwestycji Kapitalowych (BIK) and its Polish logistics portfolio, has now made its first residential transaction in the country with the purchase of more than 1,000 new apartments in Warsaw from YIT.

schedule 25 June 2021

Echo to develop Zenit

Echo Investment is to demolish a shopping centre in the Łódź district of Widzew to build its Zenit residential estate.

schedule 25 June 2021

Renters on the rise – C&W

Around 18 pct of the inhabitants of Poland’s largest cities are renting a flat or a house, according to a Cushman & Wakefield’s survey carried out by SW Research, revealing that the rental market is larger than official figures suggest.

schedule 22 June 2021

Heimstaden acquires first Prague flats

Swedish rental residential investor Heimstaden Bostad has added to its Czech portfolio with its first project in Prague.

schedule 10 June 2021

Resi4Rent opens in Gdańsk

Rental apartment platform Resi4Rent has opened its seventh building with 301 units on ul. Kołobrzeska in Gdańsk.

schedule 07 June 2021

Equilis to build 1,000 homes in Ursus

Equilis Poland, the Polish division of Belgian group Equilis, has finalised the purchase of a site in Warsaw’s Ursus district for the development of more than 1,000 apartments.

schedule 27 May 2021

Budimex Nieruchomości changes hands for PLN 1.51 bln

Polish private equity firm Cornerstone Partners and Czech developer and investor Crestyl have finalised the PLN 1.51 bln acquisition of Polish residential developer Budimex Nieruchomości.

schedule 25 May 2021

Heimstaden buys 2,500 homes from Budimex for PLN 1.4 bln

Swedish rental housing specialists Heimstaden Bostad have bought 13 projects to build 2,496 homes in Poland from Polish residential developer Budimex for around PLN 1.37 bln.

schedule 28 April 2021

Work starts on Towarowa Towers

Asbud has announced that the construction of Towarowa Towers, with a height of 95m near, has begun near the Daszyńskiego roundabout in Warsaw.

schedule 23 April 2021

Echo seals Archicom merger

Echo Investment has finalised its acquisition of a majority stake in Archicom, thus becoming the largest residential developer in Poland as the Echo-Archicom group.

schedule 22 April 2021

Resi4Rent growing nicely

In the first quarter of this year, Resi4Rent marketed 600 rental apartments. The company now has almost 300 pct more apartments on offer than it had at the end of Q1 2020.

schedule 15 April 2021

Heimstaden to invest EUR 58 mln in Czech portfolio

Swedish rental housing specialist Heimstaden has announced that it plans to invest CZK 1.5 bln (app. EUR 58 mln) in its Czech portfolio this year.

schedule 13 April 2021

Echo Investment moves into education

Echo Investment has presented its concept for a primary school for 300 pupils in Warsaw’s Służewiec district.

schedule 09 April 2021

Student accommodation still University owned in Prague

The total stock of purpose-built student accommodation (PBSA) in Prague stands at more than 28,400 beds.

schedule 08 April 2021

Echo gets a voice

Echo Investment plans to equip all its apartments with voice-controlled smart home systems that use the Amazon Dot speaker.

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