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Foreign students drive the rental market

REAL ESTATEForeign students drive the rental market

Foreign students are becoming an increasingly visible group in the local rental market. We therefore take a closer look at this intriguing situation.

The song “Gaudeamus igitur” recently rang out again, signaling the start of another academic year. Before it began, many students were searching for new accommodations, which typically means a seasonal revival in the rental market. It’s worth noting that compared to the situation a few years, or even couple of years ago, foreign students have recently been making up a larger portion of the local renting demographic, due to an increase in the percentage of students coming from abroad. This phenomenon is confirmed by interesting statistics, which real estate market expert Magdalena Markiewicz examines closely.

Article in Brief:

  • The increase in students from other countries means that the total number of people studying in Poland has stopped declining.
  • Data from Poland’s Central Statistical Office (GUS) confirms that the rise in the number of foreign students is very noticeable. In some provinces, they make up over 10% of all students.
  • The increase in foreign students is good news for apartment rental owners in big cities. However, certain details should not be forgotten.

Below, you can learn more about how the increasing number of foreigners are impacting student rentals. We strongly recommend checking out the insightful GUS statistics.

Thanks to Foreigners, The Number of Students in Poland Has Ceased to Decline

Gone are the days when the total number of students in Poland approached two million. This nearly two million figure was recorded in 2006. Since then, the number of students has sharply decreased. The latest available GUS data shows that by the end of 2023, 1.2452 million people were studying at all universities in Poland. This implies a yearly increase of about 21.5 thousand compared to the result obtained at the end of 2022. “The GUS suggests that Poland reached a student “nadir” in 2019, when the number of Polish students only marginally exceeded 1.2 million,” informs Magdalena Markiewicz, real estate market expert.

This all raises the question: have the increasing numbers of foreign students in recent years toned down the effects of the declining number of studying Poles? It seems that such a situation has indeed occurred, and it also applies to the rental market. GUS data shows that the percentage of foreign students has changed as follows:

  • 2014 – 3.1% of total students in Poland
  • 2015 – 4.0%
  • 2016 – 4.8%
  • 2017 – 5.5%
  • 2018 – 6.3%
  • 2019 – 6.7%
  • 2020 – 6.8%
  • 2021 – 7.2%
  • 2022 – 8.5%
  • 2023 – 8.6%

During the 2023/2024 academic year, the number of students with foreign citizenship surpassed 100,000 for the first time. “Most likely, in the upcoming years another symbolic result will be achieved, as every tenth student in Poland will be a foreigner. Such a ratio, or even a higher one, is already evident in certain regions of our country,” adds Magdalena Markiewicz, real estate market expert.

Many Foreign Students are Found Not Only in the Capital City

Unfortunately, GUS does not provide information on the percentage of foreign students in provincial capitals. There are only statistics on whole provinces. However, there’s no doubt that the main factor influencing these numbers in provincial cities. Hence, in the 2023/2024 academic year, the percentage of foreign students looked as follows:

  • Lower Silesia – 8.3% of total students
  • Kuyavian-Pomerania – 6.7%
  • Lublin – 14.7%
  • Lubusz – 3.5%
  • Łódź – 10.9%
  • Lesser Poland – 6.1%
  • Masovian – 11.5%
  • Opole – 13.5%
  • Subcarpathian – 6.8%
  • Podlasie – 6.1%
  • Pomeranian – 6.3%
  • Silesian – 7.1%
  • świętokrzyskie – 6.0%
  • Warmian-Masurian – 2.7%
  • Greater Poland – 7.4%
  • West Pomeranian – 7.4%

These data suggest that the role of foreign students is quite significant, not only in traditionally “internationalized” rental markets such as Warsaw’s and Krakow’s but also in places like the Lublin Voivodeship, which has a higher percentage of foreign students due to the situation in Lublin city.

It can be assumed that the capital of Lublin attracts students from countries like Ukraine and Belarus. On the other hand, foreign students are less noticeable in cities like Olsztyn and Zielona Góra,” comments Magdalena Markiewicz, real estate market expert.

Additional Demand, But Sometimes Also Some Difficulties

The increasing number of foreign students is definitely good news for apartment owners in large cities from a demand perspective. From the point of view of Polish students, the situation appears less favorable, as sometimes there is competition for places in dormitories.

Thus, the increasing number of foreign students influences the local rental market, regardless of the housing choices of the majority of foreigners“, emphasizes Magdalena Markiewicz, real estate market expert.

The mentioned impact on the market is also visible in other ways. For instance, apartment owners increasingly consider renting to students from other countries, a trend reflecting the general changes in the apartment rental market, which is much more focused on foreigners (including not just Ukrainian and Belarussian citizens) than just 10 years ago.

“Of course, various problems may arise, for example with communication or cultural differences, but it doesn’t seem that these have significant implications for landlords,” concludes Magdalena Markiewicz, real estate market expert.

Source: Magdalena Markiewicz, real estate market expert.

Source: https://managerplus.pl/studenci-z-zagranicy-napedzaja-rynek-najmu-33885

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