Generation rent is changing the real estate market in Poland
A young generation which is happier renting rather than buying is re-shaping the Polish real estate market and pulling in investors.
The idea, which is already popular in Germany, UK and USA, is that young professionals will have their own bedrooms in the buildings but the other rooms such as media room, games room and kitchen will be shared environments.
“In Poland, we are now observing a growing diversification of the residential market, which is a result of social changes that are taking place,” said Przemysław Chimczak, founder of think co. Real Estate Research Lab.
“Changes to how people approach their place of residence can be observed in members of all generations,” he continued. “And even though the majority of residential premises still remain in private hands, the institutional rental sector will gain more and more momentum. This is caused not only by the difficulty in taking out loans, but also by the greater and greater emphasis on flexibility in both private and professional lives. When selecting the place they wish to live, millennials first pay attention to the costs of maintenance, transport options, nearby workplaces, the cleanliness of the vicinity, and access to green areas. By deciding to rent, they can meet their needs but also leave themselves an option to quickly change the place they live, which is crucial for them.”
Another reason behind the growth in the rental market is the rise of the service economy.
“As the economy is becoming more service based it is driving services to the centre and then the people follow the jobs,” Czarek Jarząbek, founder and CEO of Golub GetHouse, a real estate investment and development company, told TFN. “Millennials really want to be in the centre, near their jobs, shopping centres, restaurants, entertainment and culture. The factories will always be outside the city where the land is cheap and people must drive there, but the economy is shifting to services and that is being focused on city centres.”
This trend along with the growing appreciation of the flexibility renting provides has started to attract investors.
“At this time, we have secured land in Warsaw that will allow us to complete about 1,500 apartments for rent,” said Jarzębek. “The Postępu Apartments and Liberty Tower projects will be the first ones to be completed under the Inspirental brand.
“The brand was created through analysing social phenomena and the expectations of people who are looking for the most comfortable places to live,” he added. “It responds to the current trends on the real estate market, which are becoming more and more visible in Poland, too.”
Under the brand the firm’s two projects will bring hundreds of apartments to the market. But they will also bring a wide variety of common spaces for the tenants including kitchens, gym, spa and even, in the case of the Postępu building, a beach volleyball court.
It isn’t just Poland’s Golub GetHouse that sees co-living as a growing market. The worldwide operator of co-living buildings Medici has identified Poland as a key market.
“On our journey to become the WeWork of co-living over the coming years, establishing a foothold in Poland is another key step,” said Gunther Schmidt, Medici Living founder and CEO. “Co-living is becoming more of a topic with the younger Polish generation. We are meeting their demands for flexible and at the same time affordable housing in the large cities with our Quarters concept.”
Medici have allotted EUR 200 million for their expansion into Poland. Volker Binnenboese, a senior public relations specialist with the firm, told TFN that the company is looking to invest in the Krowodrza, Dolne Młyny, Kazimierz and city centre districts of Kraków, and in Warsaw they are looking at Służewiec, Mokotów, Wola, Ochota and Praga near the metro.