The October issue of Eurobuild CEE magazine is now available, including a commentary by Robert Watkins, CEO of Hamilton May, on the Polish PRS market.
The Polish PRS market has been
recording a clearly accelerated pace of development for several years, but it
still remains a niche segment representing approximately 1% of the total rental
market in Poland. Rental demand remains strong, although not at levels seen in second
half of 2022. High interest rates and high housing prices are increasing the
demand in the rental market which has been exacerbated by the war in Ukraine.
With growing pipeline of projects across most major cities in Poland we can see
a huge potential for growth to reach levels seen in Western European Countries.
PRS sector grew approximately 40% in 2022 from a low base with approximately
10,000 apartments available. The new investors are entering the market. Even
if facing some challenges such as decreased willingness among developers to
negotiate with funds, while they are back to selling to individuals due to a 2%
mortgage scheme, investors are confident moving forward.
In Hamilton May we are sure that institutional
lease/PRS has been accepted by the Polish rental market. In NREP investments
operated by Hamilton Asset Management, such as Lett Kłobucka and Lett Lazurowa,
there are tenants of many nationalities, although Poles predominate. Most of
the tenants are young professionals, families, also multi-generational,
students and singles. The biggest advantage of the PRS products is they are for
everyone offering the benefits of living in a managed property. We can already
see some more PRS products entering the polish market such as Lett Markowska in
Warsaw's Praga District or more specific one Noli Studios - co-living concept
for flexible stays (opening in November) both by NREP. Also student housing market is developing quickly. Projects are designed
from the outset for specific purpose as opposed to typical residential
development adapted to PRS which characterises earlier projects. In Hamilton Asset Management we are constantly offering to our PRS business
partners support for their development as we believe the expansion of
institutional rental is a plan for the Polish real estate market for the coming
years.
Robert Watkins, CEO of Hamilton May
and Hamilton Asset Management
