The institutional rental market (PRS) in Poland has been developing for a decade. However, the sector is still in its early stages. The pioneer in this market was the state-owned Fundusz Mieszkań na Wynajem, which purchased its first residential building in Poznań and began operations in 2015.
New investors gradually entered the Polish market, but a significant breakthrough occurred only after 2019 when a noticeable increase in private companies started executing PRS projects. By December 2024, institutional investors owned 20,000 units, with an additional 9,500 apartments under construction. This demonstrates the tremendous growth of this sector, which has increased fivefold over the past five years. Furthermore, forecasts indicate a stable development of PRS in Poland in the coming years.
At the end of 2024, 37% of existing PRS units in Poland were concentrated in Warsaw, with the remainder located in major Polish cities, indicating increasing demand beyond the capital. Additionally, regional markets have become the largest construction sites in Poland, accounting for 65% of newly built PRS units. Recently, smaller cities such as Lublin and Elbląg have also entered the PRS market, led by the Fundusz Mieszkań na Wynajem.
Currently, Wrocław has the highest share of existing PRS units in its total housing stock (1.0%), followed by Warsaw (0.7%) and Poznań (0.7%). However, except for Wrocław, this ratio remains below 1%, making PRS a marginal sector compared to cities like Berlin, where PRS apartments account for over 30% of the total housing stock.
In 2024, 28 new PRS projects were completed, adding over 5,900 units to the market, with 16 of these located in regional cities. Most new investments were carried out by well-established PRS operators, with only one project developed by a new market entrant, AP Słowackiego.
Forecasts for 2025 suggest the delivery of another 6,500 units, 70% of which will be in regional markets.
Demand and Rental Prices
“Avison Young has been actively involved for several years not only in overseeing the construction of many PRS buildings but also in carrying out additional modernizations. Recently, we monitored the installation of photovoltaic systems on the roofs of 13 properties from the Heimstaden portfolio in Warsaw and Krakow. Working closely with these buildings at various stages of their life cycle, we can confidently confirm the strong demand for PRS units. Their key advantages—such as modern buildings, high-quality furnishings, and flexible lease agreements—continue to attract both short-term and long-term tenants.” – Tomasz Daniecki, Director, Head of Technical Advisory
The dynamic growth of PRS investments and the strong interest from investors reflect increasing demand from potential clients. Until recently, the target group for PRS apartments consisted of young working people aged 25-35, including foreigners moving to Poland. However, rising inflation and mortgage interest rates have broadened this demographic. Institutional rentals now serve both individuals with limited access to financing and those who prefer not to purchase a home. A shift in homeownership attitudes is also evident. While approximately 30% of Europeans live in rented apartments, in Poland, the rate is only 13% (Eurostat). However, this is changing due to mortgage costs, inflation, and increased immigration. Despite this shift, the average rental agreement duration in Poland is one year, whereas in Western Europe, it often exceeds ten years.
The strong demand for PRS properties is also reflected in an exceptionally high occupancy rate. Among Poland’s major PRS operators, the average vacancy rate at the end of 2024 was around 2.0%.
Rental prices depend on unit size and attractiveness, including location within the building, floor level, orientation, and additional amenities such as a balcony, loggia, terrace, or garden. The build-to-rent model simplifies pricing structures. By the end of 2024, Warsaw had the highest PRS rental rates in Poland at approximately 106 PLN/sqm. Tricity followed with an average of 93 PLN/sqm. In Wrocław and Krakow, the average was around 89 PLN/sqm and 88 PLN/sqm, respectively, while the lowest rental price was recorded in Łódź at approximately 69 PLN/sqm. These prices include service charges but exclude utility costs.
Major Market Players
Investment funds in PRS properties typically acquire entire residential buildings or even estates for institutional rental purposes. As the PRS sector grows in Poland, cooperation models are also evolving. Build-to-rent projects, where properties are constructed explicitly for rental, are becoming increasingly popular. This model also enables a standardized rental pricing strategy.
Currently, over 50% of the existing PRS stock belongs to three major operators. The undisputed leader in terms of delivered units is Resi4Rent, followed closely by Vantage Rent and the state-owned Fundusz Mieszkań na Wynajem. Together, they offer over 10,850 PRS units. Regarding new developments, Resi4Rent remains the market leader, accounting for over one-third of newly built apartments, followed by Life Spot (19%) and Fundusz Mieszkań na Wynajem (18%).
PRS Investments in Poland
“We are seeing growing investor interest in acquiring older office buildings with potential for conversion into student housing, apartments, or PRS units. One of the key advantages of such properties is their prime city-center locations. Moreover, repurposing existing buildings can be significantly more cost-effective and time-efficient than constructing new ones from scratch. Avison Young’s technical advisors have conducted numerous assessments of office buildings for potential residential conversion. Our findings indicate that adapting office spaces into residential units—without demolition—is relatively straightforward under current technical regulations. In fact, converting office buildings into residential units is much easier than the reverse.” – Patryk Błach, Senior Consultant, Investment
In 2024, the Polish residential market recorded 12 closed PRS transactions, reaching a record total of €344 million. Most transactions were finalized by established PRS operators, except for one new buyer, Lew Invest, which acquired the Urban Home project from G City in Krakow. Notably, Swedish investors accounted for 50% of the total PRS investment volume.
Over the past decade, the total PRS investment volume in Poland has exceeded €860 million. A sharp increase was observed in 2022, driven by the emergence of a secondary market following Catella’s withdrawal from Poland. Additionally, 2024 saw another record-breaking investment volume. Warsaw remained the leading PRS investment market, with nine completed transactions. In 2024, a portfolio transaction brokered by Avison Young involved the sale of City Living apartments located in Warsaw, Poznań, and Bydgoszcz.
Zoning Plans: A Case Study
Due to the growing shortage of residential land in major cities, investors are increasingly opting to develop PRS properties on well-located plots designated for commercial use. By the end of 2024, Poland had 140 PRS projects, of which 80% were completed and 20% under construction. Nearly three-quarters of these investments were on land covered by local zoning plans (MPZP).
Most investors choose PRS locations on plots designated for mixed-use residential and commercial development (MW/U). So far, 44 such projects have been completed or are under construction, accounting for 45% of all projects covered by zoning plans. However, as residential-only land remains scarce in Poland’s largest cities, these projects make up less than 20% of analyzed investments. In contrast, nearly 40% of PRS projects are on commercial-designated land.
As residential land availability declines, investors increasingly develop PRS properties on commercial plots, which are more attractively priced and do not require competition with traditional residential developers. However, PRS investments on commercial land, despite lower purchase costs, are subject to VAT on rental income, impacting initial capitalization rates.
