Poland A more mature student scene

What has recently changed on the Polish market that has accelerated the interest in the PBSA sector?
We have been active in the residential build-to-rent sector since 2017, when we established the Resi4Rent platform together with Pimco. Initially it was focused on scaling up our PRS operations, but we then decided to enter the student housing segment a year ago. Prior to that, the PBSA market in Poland was simply too small to invest in - the demand didn’t justify the desired scale. For Echo Investment to enter a segment, the opportunity has to be large enough – we typically only consider projects with 3,000 to 5,000 beds. However, we’ve seen a significant uptick in recent years. There are now more students and more foreign students studying in Poland, along with an overall growth in demand for modern student accommodation. The market has matured, and now it offers the scale we need.

Which cities are you focusing on?
We are currently focused on delivering top-class PBSA developments in Warsaw and Kraków.

Have you considered public-private partnerships as part of your strategy?
We haven’t actively pursued such partnerships so far, primarily because the PPP model in Poland is still underdeveloped compared to other European markets. Our engagement with universities has been limited to discussions around offering accommodation options to their students. We remain open to working more closely with the public sector in the future, but for now it’s not a key component of our approach.

Are the student accommodation buildings you develop prefabricated?
Yes, some of our student housing projects developed with Signal Capital Partners and Griffin Capital Partners utilize prefab construction materials. In Kraków at ul. 29 Listopada, we are extensively using prefabrication technology, while at ul. Wita Stwosza we are building in a more traditional way and yet with modern construction methods. In Warsaw, the upcoming PBSA projects will most likely be prefabricated as well. We find that prefab construction is well suited to this asset class – student housing design is repetitive, and such modular systems fit perfectly. It’s faster, more consistent or even of a higher quality, and it’s cost-effective. It simply makes sense for this type of real estate product.

Can you tell us more about your current PBSA projects in Warsaw?
Together with Signal Capital Partners and Griffin Capital Partners, we’re currently working on the development of a student accommodation building close to the Westfield Mokotów shopping centre. Another Warsaw project is scheduled to launch later this year, although we’re not disclosing its exact location yet. We also have two more developments in the pipeline here that we plan to start next year.