In Poland, like years ago, the Polish Private Rental Sector is going through a blooming time as each commercial real estate sector segment. It requires a unification of offers, greater standardization of available space, and self-professionalization. One of the first spectacular transactions involving the PRS was in 2016 and the purchase of 72 apartments in the Złota 44 building in Warsaw by the German investment fund Catella Residential Investment Management. At the end of September 2022, this segment is formed by an offer of more than 8,500 apartments for rent spread across Poland’s largest cities. The prospects for the development of the market remain very high, and it is mainly favoured by market conditions and the structure of the residential sector in Poland. AXI IMMO, together with industry experts Inquiry and ThinkCo, presents data for the Polish institutional rental market in a publication, “Development prospects for the PRS market in Poland.”
The PRS (Private Rental Sector) market, or so-called institutional rental, is relatively new to the Polish real estate market. The segment has been formulating for about six years, and the most active purchases, acquisitions, or new listings were the last two, i.e., 2020 and 2021. During this time, a real boom in investment in the sector was registered, with, among others, Aurec Capital creating the LivUp brand, acquiring three properties in Warsaw (over 400 apartments), and Zeitgeist Asset Management purchasing four buildings under construction in Gdańsk with over 200 apartments. In turn, Swedish fund Heimstaden Bostad acquired 640 apartments in Warsaw (Praga Północ and Służewiec) from Eiffage in 2020 and bought more than 3,000 units a year later from Marvipol and Budimex. Also, in 2021, Nordic fund NREP acquired more than 1,000 apartments in Warsaw from YIT.
SEE ALL THE INFORMATION ON POLAND HERE.
In Czechia, when it comes to residential real estate assets, Czechs are oriented largely towards an ownership model. The ratio of owner-occupied to rented apartments in Prague, for example, is approximately 70:30, similar to the EU27 average. Still, the Czech Republic is somewhat behind more advanced markets in terms of market evolution towards new trends. However, with the shift to hybrid working, intense talent searches, and the growth of the business services sector, Prague and other large Czech cities will need more flexible housing solutions soon. The average bid price for a newly built apartment in Prague was approximately CZK 155,000 per square meter during Q3 2022. This represents an increase of 7% since the start of the year, according to an analysis done by Colliers.
SEE THE FULL UPDATE ON CZECHIA HERE.