PRS segment accelerating on Polish market
21:29
The spectacular entry of the TAG Immobilien on the market, the purchase of a majority stake in Echo investment by the Hungarian WING, systematic purchases of the Czech Zeitgeist and the next, third transaction on the German market, the German Catella fund, are undeniable confirmation of the growing importance of the Polish rental market.
The year 2019 on the Polish housing market was marked by acceleration and increasing the scale of investment in the segments of apartments for rent and private dorms. Our country is still in the crosshairs of large foreign investors, and some of them have been able to finalize spectacular transactions. Poland is in fact still an immature, but extremely attractive market for entities that focus on investing in an institutional rental. Entering our market is associated with higher risk, but it is compensated by a higher capitalization rate. In Western European countries it is impossible to achieve a 6-8% return on investment, which still allows investing in Poland to be achieved. The growing interest of younger generations and the consistently growing rents, which have increased by almost 25% since 2014, seem to convince the next players sufficiently.
