Four pct of Polish households rent apartments – report

The apartment rental sector in Poland is small and dominated by individual owners, with 4 percent of households privately renting among which just 1 percent use institutional leases, a CBRE report shows.

Real estate consulting agency CBRE said on Wednesday that over the last decade the number of Europeans living in rented accommodation has grown from 26 percent to 31 percent, according to the agency's 'European Multifamily Housing Report.'

"The flat-to-rent sector in Poland is still small and dominated by individual owners," CBRE said. In their opinion, the situation may change due to growing interest of investors in the buy-to-rent segment and a lower inclination of younger generations towards long-term obligations such as mortgages.

The agency noted that the apartment rental sector in Europe has resisted the pandemic and the interest of institutional investors in this market is growing.

"This is favoured by demographic trends such as greater urbanisation as well as real estate prices, the level of which limits the number of potential buyers," the report stated.

CBRE pointed out that in Poland the vast majority of apartments for rent belong to private owners who have one or several properties, usually in various locations, and tenants of this type of accommodation most often see it as a temporary option.

In the view of Marcin Janski, the head of CBRE's alternative investment sector, quoted in a press release, the market is changing.

"Domestic and foreign investors are more willing to include housing in their portfolios and rising prices mean that some people can only afford ever smaller flats," he said, adding that the trend is supported by the increased mobility of younger generations.

According to the report, 84 percent of Polish households live in their own property. Four percent rent from private or institutional landlords. A further 4 percent occupy social housing and 7 percent other forms of accommodation, including free of charge, CBRE said. Institutional leasing accounts for almost 1 percent of the rental market, however, the report noted, there are many indications that that share will grow.