Poland Investors see the potential in students

During the academic year 2023/2024, Poland had 1.25 mln students, marking an increase of 1.8 pct compared with the previous year. Young people who have chosen to study at Polish universities come from 179 countries and account for 9 pct of the student population in the country.

The largest concentrations of students are found in nine key academic centres. Warsaw leads the way with 261,000 students and 63 educational institutions. Kraków ranks second with over 130,000 students and 18 universities, followed by Wrocław, which has more than 106,000 students and 25 higher education institutions. In these cities, which attract many students, private home rental has become highly expensive and competitive. While students would prefer to find accommodation in student houses, there is a shortage of available beds. Today, university-owned student houses can accommodate up to 10 pct of students – or 11 pct, when private student housing is included.

Poland has more than 440 student houses providing approx. 115,300 beds, most of which are owned by state and private universities. Although private student houses account for around 12 pct of total student accommodation, the number of beds in these facilities has doubled over the last four years from 7,222 to 14,766, according to the report from BNP Paribas Real Estate Poland. Kraków and Warsaw top the league table for private student housing with 3,378 and 3,015 beds respectively, while Lublin and Bydgoszcz rank at the bottom with 724 and 136 beds respectively. Given the rising number of both Polish and international students in Poland, coupled with the shortage of beds, this market sector is set to attract growing investor interest in the coming years.

Poland’s purpose-built student accommodation market is relatively small. Although still in its infancy and dominated by several large investors, it continues to attract new entrants representing both Polish and international capital. This demonstrates its strong potential.
Mateusz Skubiszewski, head of Capital Markets, BNP Paribas Real Estate Poland

There are several new PBSA projects in various stages of development that are expected to deliver more than 2,000 beds. Most are scheduled for completion in 2025.

Major projects underway include two developments in Warsaw: in ul. Zakroczymska (400 beds, developed by Solida Capital and Xior) and another at ul. Puławska (360 beds, by 1 Asset Management and Solida Capital). The PBSA development pipeline also comprises Collegia at Al. Grunwaldzka in Gdańsk (500 beds, slated for completion in 2026) and The Fizz at ul. Romanowicza in Kraków. With 1,000 beds, the latter project developed by The Fizz, is the largest hall of residence currently under construction. In addition, the extension of Student Depot at Al. Niepodległości in Poznań will deliver another 400 beds.

The largest PBSA projects in the pipeline are located in Warsaw and Kraków, reflecting strong demand in these key academic centres, particularly from international students who are increasingly choosing private halls of residence.
Rents for private student accommodation

Rent prices for private student accommodation in Poland vary, depending on many factors, including the standard and location of the student houses, as well as the availability of additional services and amenities. The most affordable cities are Łódź and Lublin, while Kraków, Wrocław and Warsaw are the most expensive. In Warsaw, monthly rents currently range from PLN 1,400 to PLN 3,300 for single rooms and from PLN 1,200 to PLN 2,000 for a bed in a double room. In Kraków and Wrocław, rents for single rooms start at PLN 2,200–2,500 per month. Given home rental growth in large cities, these rates may be comparable to apartment rents. Student amenities include access to communal spaces such as gyms, study rooms and gaming or cinema rooms. Private student houses also provide the comfort of living in an environment that fosters integration and cultural exchange, which is highly valuable in adapting to a new university and city.