The Pulse of Polish Real Estate:
Shock on the Rental Market
- The start of the war in Ukraine generated a positive demand shock on the rental market. As a result, the availability of flats for rent decreased significantly and rental rates rose sharply. We expect that some refugees will stay in Poland for a longer period or permanently, which in the next few years will generate an additional demand for approx. 230,000 apartments.
- The increase in rents is also supported by interest rate increases, which reduce the availability of a flat for purchase, and justify the expectation of higher profitability of renting a flat by owners.
- In our opinion, the weak situation on the sales market and good prospects for the rental market create an environment for increasing the involvement of PRS (funds investing in the institutional rental market in Poland).
- The war also contributed to a renewed increase in the cost of housing construction, which may inhibit new projects and reduce supply in the future.
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