CEE Real Estate Matters
  • Login
  • Register
  • Home
  • News
    • All
    • Awards
    • Big Moves
    • Deals
    • Legislation
    • Projects & Developments
    • Research & Reports
    Savills to Manage Logistics Asset for EQT Exeter

    Savills to Manage Logistics Asset for EQT Exeter

    Trei Opens 29th Vendo Park in Poland

    Trei Opens 29th Vendo Park in Poland

    Skanska Signs Large Lease in the Nowy Rynek Office Complex in Poland

    Skanska Signs Large Lease in the Nowy Rynek Office Complex in Poland

    Echo Investment Divests Three Office Buildings in Poland

    Echo Investment Divests Three Office Buildings in Poland

    Impact Completes Luxuria Residence in Bucharest

    Impact Completes Luxuria Residence in Bucharest

    Penta Real Estate and PSN Announce Project to Replace Former Transgas Building in Prague

    Penta Real Estate and PSN Announce Project to Replace Former Transgas Building in Prague

    Accolade Announces New Project in Sulechow

    Accolade Announces New Project in Sulechow

    One United Properties Announces the Handover of One Cotroceni Park Phase I

    One United Properties Announces the Handover of One Cotroceni Park Phase I

    White Star Logistics to Build New Park in Torun

    White Star Logistics to Build New Park in Torun

    • Deals
    • Projects & Developments
    • Big Moves
    • Legislation
    • Research & Reports
    • Awards
  • Analysis
    • Interviews
    • Trends
    • Expert Opinion
  • Countries
    • Albania
    • Austria
    • Belarus
    • Bosnia and Herzegovina
    • Bulgaria
    • Croatia
    • Czech Republic
    • Estonia
    • Greece
    • Hungary
    • Kosovo
    • Latvia
    • Lithuania
    • Moldova
    • Montenegro
    • North Macedonia
    • Poland
    • Romania
    • Russia
    • Serbia
    • Slovakia
    • Slovenia
    • Turkey
    • Ukraine
  • Segments
    • Retail
    • Industrial & Logistics
    • Office
    • Residential
No Result
View All Result
SUBSCRIBE
  • Home
  • News
    • All
    • Awards
    • Big Moves
    • Deals
    • Legislation
    • Projects & Developments
    • Research & Reports
    Savills to Manage Logistics Asset for EQT Exeter

    Savills to Manage Logistics Asset for EQT Exeter

    Trei Opens 29th Vendo Park in Poland

    Trei Opens 29th Vendo Park in Poland

    Skanska Signs Large Lease in the Nowy Rynek Office Complex in Poland

    Skanska Signs Large Lease in the Nowy Rynek Office Complex in Poland

    Echo Investment Divests Three Office Buildings in Poland

    Echo Investment Divests Three Office Buildings in Poland

    Impact Completes Luxuria Residence in Bucharest

    Impact Completes Luxuria Residence in Bucharest

    Penta Real Estate and PSN Announce Project to Replace Former Transgas Building in Prague

    Penta Real Estate and PSN Announce Project to Replace Former Transgas Building in Prague

    Accolade Announces New Project in Sulechow

    Accolade Announces New Project in Sulechow

    One United Properties Announces the Handover of One Cotroceni Park Phase I

    One United Properties Announces the Handover of One Cotroceni Park Phase I

    White Star Logistics to Build New Park in Torun

    White Star Logistics to Build New Park in Torun

    • Deals
    • Projects & Developments
    • Big Moves
    • Legislation
    • Research & Reports
    • Awards
  • Analysis
    • Interviews
    • Trends
    • Expert Opinion
  • Countries
    • Albania
    • Austria
    • Belarus
    • Bosnia and Herzegovina
    • Bulgaria
    • Croatia
    • Czech Republic
    • Estonia
    • Greece
    • Hungary
    • Kosovo
    • Latvia
    • Lithuania
    • Moldova
    • Montenegro
    • North Macedonia
    • Poland
    • Romania
    • Russia
    • Serbia
    • Slovakia
    • Slovenia
    • Turkey
    • Ukraine
  • Segments
    • Retail
    • Industrial & Logistics
    • Office
    • Residential
No Result
View All Result
CEE Real Estate Matters
No Result
View All Result
Home Analysis Expert Opinion

Poland: Benefits and Drawbacks of Build-to-Rent

September 28, 2021
in Expert Opinion, Poland
0
Poland: Benefits and Drawbacks of Build-to-Rent
68
VIEWS
Share on LinkedinShare on FacebookShare on Twitter
ADVERTISEMENT

It is symptomatic of the importance of the real estate market that Generation Y – members of which are often referred to as “millennials” – is also, sometimes, described as “Generation Rent,” because so many young adults have been priced out of the housing market.

This is a social consequence of at least three economic factors: (i) Sustained falls in interest rates (for example, the Euro area average was 14.6% in 1981, 10.2% in 1991, 5% in 2001, 4.3% in 2011, and 0% in 2021); (ii) Increases in the cost of housing (prices increased in the Czech Republic by 8.75% in 2019, in Bulgaria in the first quarter of 2020 year-on-year by 6.21%, and in Poland by 10.9% in 2020, the second highest in the EU); and (iii) A relative shortage of supply (as an illustration, Slovakia (378), Poland (386), and Hungary (455) are at the low end of the European scale of apartments per 1000 residents compared to countries like Portugal (582), Italy (581) or even Austria (541)).

The long-term impact of this will be an increase in the costs of renting, and of course a burgeoning Private Rented Sector (PRS). A relatively new PRS variant, Build-to-Rent (BTR), has developed as an answer to new needs. With relatively more money on the market, a rise in the minimum wage, and the increased willingness of investors to spend their savings on the residential market, CEE is seeing the fast growth of BTR as a viable and profitable real estate product. Necessity is the mother of invention.

Benefits

Not only is BTR relatively fresh and dynamic, but socio-economic trends point to a stability and profitability that will keep investors happy for the next few years, especially in CEE. In 2016 – the year in which the Urban Land Institute published the first institutionalized guide to BTR – an Ipsos poll found that in Poland, for example, the majority (64.5%) of residential tenants were between 20- and 29-years-old, signalling great growth potential for the BTR market.

What is more, there are other promising groups of potential tenants. The rising employment status of tenants bodes well for the future of BTR against the backdrop of an unemployment rate of 3.1% in Poland among young people, compared to an EU average of 7.5%. The same is true for the increasing number of foreigners as tenants, which has been on the rise since 2014. Currently, five percent of the population are foreigners – some two million people – and Poland has one of the highest levels of immigration in the EU.

The steady growth of prices on the Polish residential market (fuelled mostly by private investors) and high mortgage requirements from banks mean that the purchase of apartments continues to be increasingly less affordable for young people. “Generation Rent” is becoming more entrenched, institutional leases are becoming more common, and recent polls indicate that 41% of tenants are happy to rent because they are unable to purchase their own apartment. This percentage will no doubt rise, making this another box to tick for BTR investors.

Drawbacks

At the moment, BTRs are selling like hotcakes. The price of plots in Warsaw and the archetypal Mitteleuropa city of Wroclaw have shot up by around 20-30% in the last five years. To guarantee a tasty ROI, potential buyers need to start investing now.

A major point of complexity for lawyers working with BTRs in Poland, for example, is the wide gap between the needs of investors and current legislation in the area of master plans. There are no specific regulations for BTR buildings, which bear similarities not only to residential buildings, but also to service buildings, as the business activity of developers is to provide services, not to sell apartments to new owners.

Besides the main service of tenancy, BTRs also provide additional services for tenants, making them closer in character to hotels or hostels, which in Polish law are categorized as “collective residence” buildings. However, the difference between hotels, dormitories, BTRs, and ordinary residential buildings, in some legal aspects, is not always clear, which leads to confusion.

Challenge

When investors wish to obtain a BTR building permit, our goal is to help establish the legal status of the BTR in light of the local master plan. Polish law, for example, does not determine if a BTR can be built on areas described in the local master plan as areas permitted for residential or services use. The challenge begins today.

By Przemyslaw Kastyak, Partner, and Sebastian Janicki, Senior Associate, Penteris

This Article was originally published in Issue 8.2 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

Recommended Stories

Key Developments in Russian Real Estate Legislation in 2020

Key Developments in Russian Real Estate Legislation in 2020

September 28, 2021
Interview with Dominique Moerenhout, CEO, EPRA (European Public Real Estate Association)

Interview with Dominique Moerenhout, CEO, EPRA (European Public Real Estate Association)

October 13, 2021
Globalworth Romania Switches to 100% Green Energy

Globalworth Romania Switches to 100% Green Energy

October 7, 2021

Popular Stories

  • Interview with Antoine Assi, Group CEO, Estia Developments

    Interview with Antoine Assi, Group CEO, Estia Developments

    32 shares
    Share 13 Tweet 8
  • Interview with Anders Liljenstolpe, CEO, JLL Russia & CIS

    15 shares
    Share 6 Tweet 4
  • ELI Secures EUR 111 Million Financing for Logistics Portfolio

    11 shares
    Share 4 Tweet 3
  • Interview with Pepijn Morshuis, CEO, Trei Real Estate

    10 shares
    Share 4 Tweet 3
  • Cromwell appoints Piotr Gozdziewicz as Senior Investment Manager CEE

    9 shares
    Share 4 Tweet 2
Facebook LinkedIn Twitter RSS
CEE Real Estate Matters

CEE Real Estate Matters is an online and eZine format publication dedicated to the fast-moving real estate markets in Central and Eastern Europe. Our diligent team of journalists works tirelessly to bring about news and analysis in five key areas: residential, office, retail, logistics and proptech. We guide real estate professionals through the complexities of these sectors, from stand-out development projects and deals, to financing, legislation and big executive moves.


Our mission is, simply, to be the go-to source of information about real estate markets in Central and Eastern Europe.

Recent Posts

  • Savills to Manage Logistics Asset for EQT Exeter
  • Trei Opens 29th Vendo Park in Poland
  • Skanska Signs Large Lease in the Nowy Rynek Office Complex in Poland
  • Echo Investment Divests Three Office Buildings in Poland
  • Impact Completes Luxuria Residence in Bucharest
  • Penta Real Estate and PSN Announce Project to Replace Former Transgas Building in Prague
  • Accolade Announces New Project in Sulechow

Impressum

CEE Real Estate Matters SRL

Clucerului 19, Bucharest, Romania

email: press@ceerealestatematters.com

We welcome both formal press releases and other less formal summaries informing us of relevant news. News can be sent to our email address above. While we do our best to process releases in other languages, we greatly appreciate English language notifications. We greatly appreciate readers informing us of developments of significance that do not relate to their companies directly, in which case, sources will not be identified without their express permission.

© 2021 CEE Real Estate Matters - Powered by CEE Legal Matters.

No Result
View All Result
  • Home
  • News
    • Deals
    • Leases
    • Projects & Developments
    • Big Moves
    • Financing
    • Research & Reports
  • Analysis
    • Trends
    • Expert Opinion
    • Legislation
    • Interviews
  • Segments
    • Retail
    • Industrial & Logistics
    • Residential
    • Office

© 2021 CEE Real Estate Matters - Powered by CEE Legal Matters.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?