The coming months may introduce a new stage of development of the PRS (Private Rented Sector) market, especially in the face of the slowdown in the housing sales market. Developers and PRS platforms compete for the same land, and the decreasing interest in buying apartments due to high prices and difficulties with loans creates new investment opportunities in the PRS sector.
Institutional lease, as a narrow part of the real estate market, is constantly expanding the offer of apartments, so far focusing on Warsaw, Wrocław, Kraków and Poznań. In the last 6 months, investors have also noticed the potential of the Tri-City, where over 2.3 thousand apartments are being built. What are the opportunities and risks for rental? Which key tax issues should be kept in mind when planning investments? We answer these questions in this report.
Key findings from the report
Institutional lease in the first half of 2024 reached 19,400 housing units, which means an increase of 32% compared to 2023.
The weakening demand on the market of apartments for sale is an opportunity for the development of the PRS sector on the Polish real estate market.
%
of investors indicate maintenance costs as the biggest challenge facing the management staff.
%
of investors indicate that tenants in the PRS sector prefer budget apartments, which indicates high price sensitivity of customers.
The purchase of the sixth and subsequent residential premises from 1 January this year is subject to a 6% tax on civil law transactions (CLAT), which may affect the decisions of investors in the PRS sector.
Institutional lease
Favourable environment for new transactions
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