Polish rental market drifting towards professionalization
22:23
The purchase of an apartment in Poland is seen today as a long-term investment and protection of capital against inflation. Due to the growing demand for real estate from foreign funds and the favorable economic situation, there is a great prospect for housing developers.
"With the current level of interest rates, low unemployment, high wages, and rising inflation, investing capital in real estate seems to be natural. The macroeconomic environment supports the industry – as long as the loan is relatively cheap, the industry should benefit from good economic conditions,” Adrian Górniak, an analyst at Dom Maklerski BDM, said.
Górniak pointed out that the pandemic forced some changes: some developers withheld from extending their offers, but since the second half of last year the situation has normalized – gradually increasing supply is being met by high demand, both from individual and institutional buyers.
A certain novelty on the Polish market is the demand for apartments from foreign institutions, which buy not single apartments, but entire estates in order to create a base of apartments for rent when the market situation normalizes.
The shift towards institutional rental indicates that the Polish residential real estate market is evolving towards a model known in Western Europe, where institutional buyers have a significant share among property buyers.
In the opinion of Adrian Górniak from DM BDM, this may affect the rental market in the long term – the fund will be able to offer better rental conditions than an individual.
