Investors are taking an ever greater interest in the PRS sector. The total volume of investments in the sector in the first half of 2021 exceeded EUR 550 million. The sector is not a direct competitor to the office, warehouse and commercial facilities sectors, but as these are the sectors most affected by the pandemic, the PRS sector is shaping up to be a steadily growing alternative.

Recent months have brought increased investor activity in Poland, with the main market drivers being a limited supply of high-quality investment products, coupled with the enormous potential of the Polish market, which is proving to be highly competitive with the markets of Western Europe. The scale of investment is gaining momentum, with the transactions concluded in the second quarter of 2021 including, among others, the agreement between the Heimstaden Bostad fund and Budimex, securing the purchase of 2,500 units for over EUR 300 million, and the agreement concluded between Finnish developer YIT and NREP - an investor from the Nordic countries. The subject of this transaction is the construction and sale of approximately 1,000 units for rent, mainly in Warsaw, the first of which are scheduled for use for the end of 2022.Due to the very early stage of development of this sector, the available information is scattered and patchy in nature.

Experts from the consulting firm Knight Frank and Dentons have gathered and collated the information, analysing the factors influencing the sector’s development. We are now in a position to pass on the information and analyses to those interested parties who want to develop their knowledge of PRS, and who wish to explore its potential for generating returns.

The need for a report on the PRS sector in Poland

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PRS investments in Poland, totalling over 5,600 apartments

10%

existing dormitories are able to meet the demand of 10% of students

860 mln euro

invested in the housing market in Poland between 2019 and H1 2021

30,2%

of the EU population rent apartments

550 mln euro

invested in the PRS sector in Poland in the first half of 2021

What is PRS? What is the standard of supply in Poland?

The market in numbers. The parties in the investment process and their roles. A comparison of private and institutional rents. The supply of the PRS market in Poland. The supply of apartments for rent in Poland.

Definitions

Investment market

Development potential of the PRS market in Poland

PRS market in Poland

A shortage of apartments and housing conditions worse than in the EU. Poland compared to Europe. Deficit of apartments and overpopulation. Increasing level of disposable income. Lease or loan? Demography. The sharing economy. Education and internal migration. Dormitories. Foreigners as tenants.

PRS is gaining momentum. Transactions in numbers. Rate of return on housing investments in Europe. The largest players.

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Transactions on the PRS market

Initial stage - defining the transaction's subject. Financing and monitoring of investments. Handover and acceptance of the project. Transaction documentation and venture safety.

Zoning issues

Tax aspects of acquiring residential real estate in Poland

Starting point of the investment. The selection of land for development. The Classification of buildings intended for PRS investments. The master plan and implementation of a PRS project.

Residential rental agreements

New legal regulations and new opportunities. Security measure for claims. Characteristics of residential rental agreements.