PL

Poland PRS is the safest

Residential
Institutional rental comes from Western Europe and is firmly established, among others, in Germany, Switzerland and the Netherlands. For several years, interest in the PRS market from both investors and tenants, has been steadily growing in Poland.

The sector has been developing since 2014, when the state-owned Fundusz Mieszkan na Wynajem fund purchased the first apartment building in Poznan for institutional rental. Since then, more and more newcomers have appeared in this market segment. Avison Young points out that its clear development only took place after 2019, when new players began to appear on the market. At the end of 2022, we had approx. 9,400 existing premises on the market and another 13,000 under construction. Current market conditions mean that even larger development opportunities are opening up for the PRS sector. High inflation and interest rates, poor access to mortgage loans increase the demand for apartments for rent.

The year 2022 closed for the PRS sector with a record high transaction volume. Avison Young experts emphasize that EUR 150 million is the best result achieved in this segment in the history of the young Polish market. Five out of seven transactions concluded in the sector last year, were located in Warsaw. PRS sector in Poland, due to its initial stage of development, is dominated by transactions on the primary market, where buildings are purchased directly from developers. Avison Young points out, however, that last year such a high volume was also built thanks to the exceptionally large share of secondary market transactions - the sale of Catella portfolio, which left Poland. The portfolio included residential premises in Złota 44 in Warsaw and Pereca 11 in Warsaw and Trio in Cracow.

Other transactions finalized in 2022 include the sale of 138 apartments in Studio Plac Dominikanski in Wroclaw, the purchase of 136 apartments in Unique Tower in Warsaw, the purchase of 116 apartments in Wola Nowa project in Warsaw, and the sale of 55 apartments in Metro Polczynska complex in Warsaw. Avison Young emphasizes however, that it should be noted that many forward funding projects were implemented simultaneously. The PRS investment market is characterized by various types of acquisitions, depending on the status of the project. Most agreements signed in 2021-2022 in Poland, included forward financing, when the parties conclude a purchase and sale agreement at the beginning of the construction process. The investor provides financing for the individual stages of the project, most often in the form of advance payments towards the purchase price.

Avison Young emphasizes that forward funding transactions, finalized over a period of about 2 years, reflect the actual market dynamics and investors' appetite for the PRS product. In 2021-2022, approximately 6,000 PRS units in 15 investments, the total volume of which amounted to approximately EUR 700 million were the subject of forward financing deals. The most active investor and the undisputed leader in forward funding projects in this period was Heimstaden Bostad, responsible for over 60 pct. of the transacted volume. As a consequence, the entity is also the most dynamically developing PRS operator in Poland.

Investment funds usually buy entire buildings and even residential complexes, which they then allocate for institutional rental. Along with the development of the PRS sector in Poland, Avison Young also observes changes in the cooperation model. Projects implemented in the build to rent formula, where residential properties are built from scratch for rent, are very popular. This formula makes it possible to standardize subsequent rental rates. Avison Young points out that investors active from the very beginning on the PRS market in Poland are now giving way to newcomers. The undisputed leader in terms of the number of PRS units at the construction stage is Swedish Heimstaden Bostad, which has 27 per cent share in total resources under construction. It is followed by the operator Resi4Rent, Vantage Rent and Resi Capital. After launching all new projects which are currently under construction, Resi4Rent will maintain its dominant position in the sector, becoming the owner of 24 per cent of resources. Heimstaden Bostad, the most dynamically developing operator, will occupy the second position with 17 per cent market share. As far as the origin of capital is concerned, the structure of the Polish PRS market is dominated by investors from Israel, Germany and the Netherlands. Their transactions accounted for a total of 75 per cent of total transaction volume since 2014.

According to Avison Young report, over the last nine years the total volume of closed deals in the PRS sector in Poland exceeded EUR 325 million. In terms of demand, PRS market is currently developing very dynamically, which is paradoxically favored by the geopolitical and macroeconomic situation: the war in Ukraine generates an influx of potential tenants, high interest rates make it difficult for potential buyers to obtain a loan to buy their own apartment. On the other hand, some investors are suspending or renegotiating new projects due to rising construction costs resulting from rising energy and raw material prices, destabilizing supply chains and increasing financing costs.
However, looking at investment activities on the PRS market from the perspective of the end of 2022, Avison Young expects further development of investments in this sector, assuming that the costs and financing strategies adopted by the banks will not stand in the way.

Residential properties and commercial convenience projects, catering to the basic needs, are considered the safest in times of widespread market uncertainty. Avison Young adds that the PRS sector of apartments for rent will develop not only due to inflation or high mortgage rates, but also due to the changing perception of homeownership. Across Europe, the number of people renting flats rather than owning has been growing for many years. The rental trend is starting to gain momentum thanks to the greater mobility of Poles and more frequent changes, which to some extent have also been enabled by the pandemic. This is because renting does not oblige individuals to be permanently bound to their place of residence, but gives them the possibility of flexible changes, such as moving to another city for work.

Latest news

Warehouse & industrial

Poland Second hall for Łódź Górna

schedule 27 September 2023
Opr./edited by ANZ

Hillwood Polska has started the expansion of the Łódź Górna logistics park with the addition of a second hall of almost 42,000 sqm. it is expected to be completed in Q1 2024.

Material partner

Poland Grounded in experience

schedule 25 September 2023

Justyna Cymerman, the head of the urban planning department of land transaction consultancy Greenfields, and Michał Różycki, its director of the land department – living sector, tell us about the company’s greatest achievements, the state of the market, and what needs to happen next to tackle the housing shortage

Warehouse & industrial

POLAND Panattoni sells 3 Polish parks for €100m

schedule 27 September 2023
Opr./edited by NN

Warehouse developer Panattoni has finalised the EUR 100 mln sale of three fully-leased industrial parks across Poland with a combined area of 135,000 sqm to an undisclosed investor.

Office & mixed-use development

Poland Falck joins Skyliner tenants

schedule 27 September 2023
Opr./edited by JC

The global healthcare company, Falck, has joined the tenant portfolio of Warsaw's Skyliner. It will occupy nearly 1,500 sqm of space in the office building.

Eurobuild Awards

POLAND Final three days for Eurobuild Awards nominations!

schedule 27 September 2023
Eurobuild CEE

Saturday, September 30th is the deadline for nominating projects and companies for the Eurobuild Awards 2023! The registration of candidates for the jury also falls on this day.

Warehouse & industrial

Germany P3 picks up three in Germany

schedule 26 September 2023
Opr./edited by JC

Polish warehouse developer P3 has completed the acquisition of three logistics properties from UK warehouse developer Baytree in Barleben, Leipzig and Hannover.

Warehouse & industrial

Poland Full house in Pruszków

schedule 26 September 2023
Opr./edited by JC

Dimax International Poland is moving to a new distribution center – Panattoni Park Pruszków V. The tenant will occupy 3,400 sqm of warehouse and office space, thus occupying the last vacant module in the investment near Warsaw.

Eurobuild CEE

Poland The October issue of Eurobuild hits the shelves!

schedule 26 September 2023
Opr./edited by ANZ

Slightly earlier than usual (due to the upcoming Expo Real trade fair), the October edition of monthly magazine 'Eurobuild CEE' has now been published, which also includes a special bonus issue devoted entirely to warehousing. Both publications are available in hard copy and in digital format – in html and in flipbook form.

Office & mixed-use development

POLAND Wipro waved into Gdańsk

schedule 25 September 2023
Opr./edited by NN

Wipro IT Services Poland, part of Indian tech giant Wipro Limited, has leased 3,500 sqm in the Wave building in Gdańsk.

Retail & leisure

POLAND Popeyes pops into Złote Tarasy

schedule 25 September 2023
Opr./edited by NN

The first Popeyes restaurant in Warsaw has opened in Złote Tarasy. The Louisiana-based fast food chain is the seventh new tenant of the shopping centre this year.

Warehouse & industrial

Poland Food expansion at GLP near Poznań

schedule 25 September 2023
Opr./edited by ANZ

Mastermedia has expanded its space at GLP's warehouse park at Poznań Airport by an additional 11,800 sqm. The company is now the largest customer of GLP Poznań Airport Logistics Centre, where it will occupy a total of 28,800 sqm of space.

Residential

POLAND Olympian project takes shape in Katowice

schedule 25 September 2023
Opr./edited by NN

Atal has started the foundation work on 17-storey tower that will form part of its Olimpijska complex in Katowice city centre.

Warehouse & industrial

CZECH REPUBLIC Shape consolidates in Panattoni Pilsen West

schedule 25 September 2023
Opr./edited by NN

Automotive parts producer Shape Corp has leased 36,400 sqm in Panattoni Park Pilsen West II, where it will employ up to 700 people.

Warehouse & industrial

POLAND Petrochemical partners in Płock

schedule 25 September 2023
Opr./edited by NN

A consortium of Hyundai Engineering and Tecnicas Reunidas has leased 2,500 sqm of warehouse space in DL Invest Park Płock.

Warehouse & industrial

Poland ECE makes its start in logistics

schedule 22 September 2023
Opr./edited by ANZ

The ECE Group is making its debut on the Polish logistics market with the construction of a 78,000 sqm project near Kąty Wrocławskie in line with the requirements of BREEAM 'Excellent' certification.

Residential

Poland In the heart of the business district

schedule 22 September 2023
Opr./edited by ANZ

Archicom and Echo Investment are to begin the construction of the Modern Mokotów residential development in Warsaw's Służewiec district. The existing office development will be replaced by a 'destination' type residential quarter.

Architecture and urban planning

CZECH REPUBLIC Dutch-Czech team wins Dejvice contest

schedule 21 September 2023
Nathan North
deputy editor

Dutch studio Benthem Crouwel Architects together with Czech architects OVA have won the competition to redesign a quarter of Vítězné náměstí (Victory Square) in Dejvice district (Prague 6).

Residential

CZECH REPUBLIC €700 mln green loan for Heimstaden

schedule 21 September 2023
Opr./edited by NN

Swedish residential specialist Heimstaden Bostad, through its subsidiaries Heimstaden Czech and Heimstaden Czech Pilsen, has received a sustainability-linked loan of EUR 700 mln from a consortium of banks for its Czech properties.

Architecture and urban planning

SLOVAKIA Alto launches Sky Park arch-comp

schedule 20 September 2023
Nathan North
deputy editor

Alto Real Estate, the owner of the Sky Park complex in Bratislava, has launched an architectural competition for its further development on an adjacent plot.

Warehouse & industrial

Poland Panattoni’s high-tech park in Gliwice

schedule 20 September 2023
Opr./edited by ANZ

Panattoni has developed a BTS facility for the Tenneco Group in Gliwice. The European Engineering Centre is to serve the company as a research and development centre for new technologies.

Latest in Residential

schedule 25 September 2023

Olympian project takes shape in Katowice

Atal has started the foundation work on 17-storey tower that will form part of its Olimpijska complex in Katowice city centre.

schedule 22 September 2023

In the heart of the business district

Archicom and Echo Investment are to begin the construction of the Modern Mokotów residential development in Warsaw's Służewiec district. The existing office development will be replaced by a 'destination' type residential quarter.

schedule 21 September 2023

€700 mln green loan for Heimstaden

Swedish residential specialist Heimstaden Bostad, through its subsidiaries Heimstaden Czech and Heimstaden Czech Pilsen, has received a sustainability-linked loan of EUR 700 mln from a consortium of banks for its Czech properties.

schedule 20 September 2023

Vastint launches first Polish PRS project

Vastint Poland is launching the development of its first private rental sector residential project – the Pastelowo estate, which is to be built on ul. Pastelowa in Poznań, close to the developer’s Business Garden office complex in the city’s Grunwald Północ district.

schedule 14 September 2023

Marina City on its way

Cordia is about to launch the construction work on its Marina City urban regeneration project in Budapest - on a 14 ha site close to the banks of the river Danube.

schedule 30 August 2023

Trei teams up with Kingstone for Polish rentals

German companies Trei Real Estate and Kingstone Real Estate have formed a partnership to develop rental apartments in major Polish cities.

schedule 20 July 2023

Lofts on sale in baroque brewery

Penta Real Estate has started the sales process for apartments in the revitalised historic section of its Nuselský pivovar (Nusle Brewery) development in Prague 4.

schedule 16 June 2023

German cities show resilience

The Empira Group has conducted a supply analysis of the residential property market in Germany's top 8 cities in the context of demographic and economic developments. The results of this analysis show that residential markets in German metropolitan areas are moving away from ownership towards rental.

schedule 14 June 2023

New life for historic Szczecin building

The Capital Park Group has received permission to modernize a historic building in the centre of Szczecin. Rezydencja Aleja Fontann, a residential building with 62 flats will be built there.

schedule 07 June 2023

Affordable housing project in Prague

Wolf Theiss Prague's real estate team successfully advised Sekyra Group in connection with the forward sale of residential project Opatov II to Dostupné bydlení České spořitelny and Kooperativa pojišťovna, Vienna Insurance Group as buyers.

schedule 01 June 2023

Develia to take over Nexity Polska

Polish developer Develia has signed a preliminary agreement to acquire 100 pct stakes in the Polish subsidiaries of French developer Nexity for EUR 100 mln (app. PLN 453 mln).

schedule 01 June 2023

Vastint unveils plans for new Poznań quarter

Construction will soon start on the Portowo na Starołęce project, the largest residential development in right-bank Poznań in years. The estate will be built on a 19-ha plot by the Warta River. The investor is Vastint Poland.

schedule 05 May 2023

More luxury on ul. Złota

AFI Europe has completed the refurbishment of the historic Wolf Krongold townhouse on ul. Złota in central Warsaw, having adapted it for long-term apartment rentals and modern commercial space.

schedule 18 April 2023

Echo and Archicom restructure

Echo Investment's residential business will be integrated into Archicom. The change will clarify the structure of the group, where Archicom will be the residential part and Echo Investment will focus on growing the commercial and PRS segments, as well as on creating mixed-use ‘destination’ projects.

schedule 12 April 2023

Soho goes green

Construction commences for the third stage of Soho by Yareal development in Warsaw’s Kamionek district, which will include two residential buildings containing 14 apartments and 132 higher-standard flats. Also, work on a 300-metre-long, fully landscaped park which runs through the complex will be completed later this year.

schedule 11 April 2023

Major drivers of the CEE living market

Urbanisation, the supply gap of dwellings and the growing middle class are the main drivers for the living market in CEE reveals a report by Colliers: ‘The living sector in CEE-6. Let's discover the potential of the market segment’.

schedule 06 April 2023

Cavatina prepares Katowice resi-project

Cavatina is planning of a new mixed-use development in the centre of Katowice. Further details of the project have yet to be revealed, but, as ‘Eurobuild’ has managed to establish, the app. 20,000 sqm gla complex will contain around 200 flats. 

schedule 27 March 2023

Millions for Neo Natolin

Real Management has announced funding for construction of the first stage of the Neo Natolin housing estate. The company has received funding of PLN 125 mln for the residential project which is being developed in Warsaw’s Wilanów district, at ul. Stefana Korbońskiego.

schedule 23 March 2023

Promising Polish PRS

According to the latest Avison Young report, at the end of 2022, there were over 9.4 thousand units in the pool of apartments for institutional rent in Poland, and another 13 thousand flats were under construction. The prolonging conflict in Ukraine and the significantly reduced credit scores increase the demand for renting apartments and thus, affect the development of the PRS market in Poland.

schedule 15 March 2023

New PRS project in Mokotów district

Apricot Capital Group (ACG) has announced the signing of a general contractor agreement with Budimex for the construction of a new PRS development at ul. Taśmowa 5, in the Warsaw’s Mokotów district. The total investment exceeds PLN 270 mln and ACG’s investor has provided the full sum in equity.

Edition 10 (282) October 2023

Latest comments

Categories