To what extent could Real Estate Investment Trusts (REITs) stimulate growth in Poland’s Private Rented Sector (PRS)? Will this investment model prove effective in the local market? And how quickly might the supply of rental housing increase as a result? Tomasz Kaleta, Managing Director of Sales and Marketing at Develia REITs are a solution that has been successfully operating in many countries for years, enabling individual investors to benefit from financing projects that were previously only available to large players due to their scale. In the context of Poland, if the new law creates favourable conditions for residential REITs, we can expect increased investor activity, which will translate into an increase in the number of rental apartments being built in the PRS sector. In 2025, in addition to expanding the company's portfolio of projects in Poland's largest cities, both in the popular, upscale and premium segments, we plan to implement at least two investments in the living sector (PRS and private dormitories). In January this year, we purchased a plot of land in the centre of Wrocław for the construction of a dormitory with approximately 600 rooms. Witold Kikolski, board member of MS Waryński Development S.A. The introduction of REITs in Poland will certainly affect the housing sector, increasing the availability of capital and activity in the PRS segment. Thanks to this form of investment, an increase in the number of flats for rent can be expected, especially in large cities, which will not only improve the availability of premises, but also their quality. REITs also favour the development of new housing investments. Considering the growing potential of the institutional rental market, our company does not rule out increasing its involvement in this segment in the future, seeing it as an interesting opportunity for long-term growth. Andrzej Biedronka-Tetla, Member of the Management Board of Atal, CFO Considering the popularity of the housing sector among investors, REITs could be an interesting alternative for generating stable income in the long term. This is an investment formula that is not currently available in Poland. Legislative changes could popularise it, although it seems that it will continue to have a marginal significance in the savings portfolios of Poles for a long time. We are more willing to invest in ownership as such than in units of participation in it. Certainly, examples of unsuccessful investments, e.g. in condo hotels or other private real estate ventures, have worsened the perception of this and similar forms of capital investment. The PRS sector plays a negligible role in our company's operations. We have never been optimistic about its future in Poland due to the market environment and the habits of Poles. The mere introduction of REITs will not immediately cause a major investment boom in the housing sector. Nevertheless, the market share of this business model has growth potential. Much depends on the specific regulations that may be implemented. This is not the first legislative initiative in this area. Unfortunately, it may not be the last if it is not successful or if the solutions adopted are unattractive to investors. Mariusz Gajżewski, Head of Sales, Marketing and Communication BPI Real Estate Poland The introduction of REITs could have a significant impact on the housing market, especially on the development of institutional letting. If the regulations are favourable, the availability of capital for investment in rental housing will increase, which in turn could translate into a greater supply of housing. This could also increase market liquidity and attract new investors. We have been closely monitoring the PRS sector for a long time and were looking for a partner to realise such a project. In the end, after analysing all the options, we sold a plot of land with an approved project on Obrzeżna Street in Warsaw to Speedwell last year. Zuzanna Należyta, Commercial Director at Eco Classic With the current rates of return, we do not expect the introduction of REITs to have a significant impact on the market in the near future. Such a tool will allow more capital to be attracted to the market, but this will not change the fact that the main problem with housing in Poland is the lack of a housing policy and the availability of land for housing construction. Renata McCabe Kudła, Country Manager, Grupo Lar Polska We very much hope that the REIT project will come to fruition in 2025. In Spain, Grupo Lar is the manager of a REIT called Lar España, which has been involved in shopping centres for over 10 years. As for the possibility of creating REITs that would invest in residential properties for rent, we believe that this could increase the activity of Polish investors in the domestic market. It would be an opportunity for individual investors to invest in the rental market in a more structured and diverse way than is currently possible. As for Grupo Lar's share in the PRS segment in Poland, it is a market that we are observing and planning to be present in. We are waiting for interest rate cuts, which are currently holding us back in this area. Andrzej Gutowski, Sales Director, Ronson Development The introduction of REITs in the housing sector will have a stabilising effect on the market, especially in the initial period. Although the effect may be small at first, it should intensify within a year or two, especially in the rental market. We believe that REITs will be an investment vehicle that can attract customers and provide an attractive savings alternative. The fact that people will be accumulating their savings in this way should increase the available capital, which will contribute to greater market investment. This will create an opportunity for more projects to be developed, which in turn may affect the level of prices and sales in the development market. A strong rental market will counterbalance the aggressive development market. Our company is currently opening up to the PRS market. Damian Tomasik, CEO of Alter Investment The introduction of REITs to the Polish market may be one of the key impulses for the development of the rental housing sector and lay the foundation for further changes in the structure of the real estate market. In developed countries such as the USA and Germany, these types of funds are an important stabilising element of the housing market, enabling a wide range of investors to invest in real estate, and at the same time increasing the availability of long-term rental housing. Currently, the PRS (Private Rented Sector) in Poland is developing dynamically, but it is still in the growth phase and represents a small percentage of the entire housing market. The popularisation of REITs can significantly increase the scale of this segment, attracting institutional capital and encouraging the construction of new flats intended exclusively for rent. This is a response to the changing needs of the market. More and more people, especially among the younger generation, consider renting as a more convenient and flexible alternative to buying property on credit, especially in a climate of high interest rates and limited creditworthiness. REITs can therefore not only increase the supply of housing, but also improve the quality of the rental offer by introducing professionally managed buildings with a long-term approach to property maintenance to the market. Currently, in Gdańsk alone, we have three projects in the pipeline and several completed investments in various parts of the country. The introduction of REITs to the Polish market will certainly increase our involvement in this segment. Marcin Michalec, Managing Director, Okam Capital REITs allow for raising capital from individual and institutional investors, making this market accessible to smaller investors who do not need to have a large amount of capital to purchase real estate. They enable and significantly increase the attractiveness of investing in the housing market. The acquisition of previously unavailable capital by developers can support the financing of the construction of new housing projects and, in practice, increase the supply of flats for rent, especially in the institutional rental segment. Especially in large cities, this can be a response to the growing demand in the market. Increased capital liquidity in the PRS sector may also attract new players to the Polish market, including foreign funds. REITs may therefore be an important element of the development strategy of real estate companies that operate or plan to operate in the PRS segment. But their ultimate success in Poland will depend on legislative details such as taxation, profit distribution regulations and asset management issues. Eyal Keltsh, CEO of Robyg and Vantage The introduction of REITs (Real Estate Investment Trusts) in Poland, if implemented properly, may have a significant impact on the housing sector, including the availability of housing and activity in the PRS (Private Rental Sector) segment. REITs have the potential to increase the availability of financing in the housing sector, as they enable individual and institutional investors to invest in real estate. The introduction of REITs, especially in the context of the PRS sector, may encourage greater investment in the construction of new housing, particularly in large cities where rental demand is high. If developers are able to raise capital from the market through REITs, this could increase the number of investments in housing construction, enabling smaller (individual) investors to participate in the real estate market, even with relatively low initial capital. Shifting activity to renting rather than selling may also be a response to changing social preferences, with more and more people choosing to rent rather than buy property. Source: dompress.pl