Rental sector

Despite functioning quite well, the residential rental sector in Poland is relatively small and largely limited to big cities. What is more, the majority of residential premises for rent on the Polish market are still in the hands of private individual investors, and the resources are considerably fragmented.

Meanwhile, the housing needs and lifestyles of young Poles are changing, a shift which the rental sector benefits from. The symbolic need for ownership is becoming less important than mobility and financial liquidity. On the other hand, rental is the only option for many households that are unable to purchase a flat for economic reasons. It is typically also a necessity in the case of people starting their independent lives.

This caused a very important group of buyers to appear on the demand side, namely individual investors who buy real estate to let it later on (the so-called buy-to-let model). Foreign investment funds have also become more active on the Polish housing market.

A breakthrough came in 2016. The first transaction was concluded with a foreign institutional investor, where the entire building was purchased for rental of the individual units. A few days earlier, the market witnessed the unprecedented purchase of a large portfolio of high-end apartments, also by a German fund investing in rental properties. In early 2017, the two investors decided to invest further in the PRS (Private Rented Sector) segment. This time they bought three buildings in Krakow, one of which was entirely intended for letting to students. REAS was involved in all three transactions, as a transaction advisor to the buyer.

There are more and more companies, either already operating in Poland or considering entering the Polish market, that finds investing in the Polish rental sector an attractive alternative. Housing assets in Poland can generate stable cash flows and offer higher yields than more traditional investment resources, such as commercial real estate.

REAS stays in touch and cooperates with these businesses by providing the necessary data, analyses, and transaction advisory services.

We monitor the situation on the rental market on an ongoing basis, both it is institutional as well as private segments (described in detail in our Renting in Poland. Individual Landlords report). We conduct cross-section analyses and organise workshops for organizations that want to get to know the Polish market better. We offer consulting services related to building and managing a portfolio of real estate, as well as purchasing or selling real estate bought for this purpose. This way, we connect developers and investors.

Our team of experts also supports developers and investors by offering a wide range of services related to investing in rental flats, which include:

  • Analyses of housing markets focusing on rental opportunities
  • Financial analyses
  • Advising on building and managing a property portfolio
  • Advising on the purchase/sale of dwellings and portfolios
  • Valuations of properties and portfolios
  • Due diligence
  • Strategic consulting