Private Rented Sector in Poland will increase to 63,000 in 2028

The resources of the Polish institutional rental market (PRS - Private Rented Sector) amount to approx. 7,400 premises and will increase to over 63,000 in 2028, according to the report "Overview of the PRS market in Poland - H1 2022", prepared by PwC Polska.

The PRS (Private Rented Sector) market in Poland is only in the initial stage of development, but has been systematically growing since its inception over 5 years ago. The resources of this type of facilities are still relatively small, but we predict that by 2028 there will be over 63,000. As of mid-2022, the largest players on the market are Polish entities: Resi4Rent and PFRN, which have a total of about 4,500 flats, which corresponds to over 60% of the existing stock, with players such as Heimstaden, NREP and Zeitgeist expanding their platform, its was reported.

Most of the resources are in Warsaw: 3,611 existing units and 5,758 under construction, followed by Wrocław with 1,077 existing units and 1,065 under construction, followed by Kraków with 894 available units and 1,228 under construction. Apart from Warsaw, the largest increase is observed in Łódź, where 2,573 new facilities are under construction, according to the PwC list.

We estimate the total number of rental properties in Poland to be 1.21 million units, with units currently available on the PRS market accounting for a negligible portion of the housing stock for rent in Poland (approximately 0.62%). Taking into account the forecast supply of new apartments for rent in the coming years (an average of 22,600 apartments per year in the seven largest cities by 2028), the percentage of the PRS product delivered annually will be around 40% of supply. apartments in the seven largest Polish cities, according to the report.

The current saturation of the institutional rental segment in the total number of available apartments for rent in each of the active cities is at a low, single-digit percentage. Warsaw is the most saturated market, where approximately 2.5% of the product for rent is made up of PRS resources. As of the first half of 2022, the lowest saturation was recorded in Katowice (0.71%), which was slightly higher than the national average of 0.61%. It can also be observed that in several key regional cities, such as Szczecin, Bydgoszcz, Lublin and others, there was no PRS project, concluded PwC.

Source: PwC and ISBnews