PRS housing market does not pose a threat to individual investors

The PRS market, ie the professionally managed segment of apartments for rent (Private Rented Sector), is currently the most dynamically developing segment of the real estate industry in Poland. According to data from autumn 2021, compiled by the consulting company Knight Frank and Dentons, there are currently over 5,600 apartments from the PRS segment in our country, and another 25,000 are under construction and at the planning stage.

Professionalization of the market by the PRS sector raises the question of whether individuals who plan to buy an apartment for investment purposes have good prospects for earnings, or whether PRS entities are such strong competition that rental of apartments by individual investors will become too difficult and not profitable. Katarzyna Kuniewicz, Head of Residential Research at Obido (OLX Group) believes that private individuals who profit from renting do not have to worry.

"Of about 1 million apartments in Warsaw, about 12-15 percent is rented. This means that about 100,000-120,000 apartments are leased. So if it appears on the market within three years – although it is not very realistic – 10,000 new apartments for rent offered by companies from the PRS sector, can this scale be a threat? Definitely not," Katarzyna Kuniewicz assessed.

The whole conversation from the series: Real Estate for Individual Investors – 15 minutes how to invest wisely can be seen on the channel of the Individual Ladies Investors Club: https://www.youtube.com/watch?v=sWksM9hGu8E

(WBJ)