Record growth in private rental in Poland. The professionalization of the market is changing the housing industry

The private rental market in Poland is growing at record levels – the number of rented apartments has increased by 39% in five years. The increasingly stronger position of PRS and institutional leasing. ThinkCo experts explain what drives change.

Rental in Poland is growing faster than ever
Rental chosen out of necessity and choice
The market is still very fragmented, but professionalization is progressing
Lease – mainly in metropolitan areas
PRS, foreign students and new quality of apartments
FAQ – support section for readers (SEO)

The private rental market in Poland is growing at the fastest rate in history. Over the last five years, the number of rented apartments has increased by almost 40%, and the share of rentals in the housing stock is approaching 10%. Even though most owners only have one or two apartments, the share of professional entities, including institutional investors and operators, is growing dynamically. Renting is no longer a temporary solution – it becomes a real alternative to purchasing real estate.

The professionalization of the housing market in Poland has been going on for a decade, but its full effects are only now visible – ThinkCo analysts point out in the latest report “Apartments for the Young”.

Rental in Poland is growing faster than ever

According to Eurostat data, almost 750,000 people use market rental in Poland. households. However, the real scale of the phenomenon is much larger. ThinkCo estimates that almost 1.68 million apartments it’s on the private rental market, which suits you approximately 10% of the total housing stock.

“Arriving at such conclusions is possible thanks to tax information provided by the Ministry of Finance and taking into account research on the ownership structure of apartments and the gray economy,” explains Dominik Różewicz, chief analyst at ThinkCo.

Compared to 2020, this resource increased by 39%while the general housing stock in Poland – only about less than 8%. This is the result of growing demand for rentals, driven by demographic changes, professional mobility and low availability of mortgage loans.

Rental chosen out of necessity and choice

More and more people consciously decide not to buy a flat. Renting allows flexibility – changing the location along with work, better standard with a lower entry cost or choosing an attractive district.

“Tenants are not only people who cannot afford to buy an apartment, but also those who have already bought a premises, but could only afford a small size or a less attractive location,” emphasizes Elżbieta Chmiel, Member of the Management Board at PFR Nieruchomości SA

Despite this, up to 62% of tenants admits he rents because they can’t afford it to buy your own apartment.

The market is still very fragmented, but professionalization is progressing

Until 92% of renters has only 1-2 apartments, i.e. approx. 900,000. people. However, they are only responsible for 68% apartments available for rent.

The remaining premises are in the hands of the following operating entities:

3–15 apartments – 26% of the resource
15+ apartments – 7% of the resource (although they only constitute 0.2% of owners)

It is this smallest group of owners that sets the tone for change.

“The key is long-term thinking: how to attract and retain tenants, how to avoid frequent changes and repairs, in short: long-term profitability,” comments Szymon Sarnowski, Director of the PRS implementation department at Decoroom.

Lease – mainly in metropolitan areas

Half of active ads in Poland are concentrated in just six centers:
Warsaw, Kraków, Tricity, Wrocław, Łódź and Poznań.

Although only 14% of the country’s population lives there, these cities attract students, young workers and foreign talents.

Additionally, in larger cities, purchasing a flat has become particularly difficult – a gross media remuneration you can only buy:

0.51 m² in Krakow
0.55 m² in Wrocław and Warsaw
0.57 m² in Gdańsk and Poznań

Zielona Góra is the best – 0.75 m².

PRS, foreign students and new quality of apartments

With the inflow of investments in the PRS and private student residences sector, the rental standard is increasing. The demands of tenants – especially the wealthier ones – are becoming higher and higher.

“These are people for whom smart home is no longer a luxury, but an everyday reality,” emphasizes Agnieszka Wilczewska, Strategy & Innovation Manager Center of Excellence B2B and IoT/SEPOL, Samsung Electronics.

The professionalization of the market means competition in terms of standards, service and long-term asset management.