POLISH RESIDENTIAL PROPERTY MARKET – CHALLENGES, RESTRICTIONS AND MAIN DIRECTIONS OF GROWTH
The Polish residential property market finds itself on the threshold of qualitative and organizational changes. The latest report by CBRE entitled “Residential property market in Poland” is addressed to capital investors and property developers, and its objective is to analyse in detail the current situation prevailing on the Polish residential property market. The publication reviews the challenges and restrictions as well as the main directions of growth thereof with a particular focus on the private rental sector where institutional investors’ activity is increasing visibly.
Investor demand in Poland for purchase of new apartments is driven by both macroeconomic factors and a belief in the long-term value of properties. Rates of return on rental of apartments that have been on the rise since 2014 encourage private investors to withdraw funds from low-interest bank deposits and bonds and to invest them in residential properties. At the same time, growth of the private rental market represents a vast potential for property developers to boost the level of sales of new apartments and an attractive alternative as regards increasing the scale and diversification of their current operations. The benefits attainable from investing in the private rental market have also been noticed by institutional investors. 2016-2017 saw the completion of first international transactions by investment funds establishing portfolios of rental apartments for whom the residential property market has become as attractive to invest in as the office and retail property markets.
In response to the occurring changes and the needs of our clients, CBRE is now actively expanding the range of services addressed to capital investors and property developers planning to enter and already operating on the residential market. Our new publication is not only a reference book for investors, but also a practical guide to understanding the processes taking place on the market and then applying the knowledge in planning future investments.
The report drawn up by CBRE in cooperation with Baker McKenzie sheds a great deal of light on the developments that determine the sales dynamics in respect of new apartments and the legal context for growth of the private and institutional rental property sector. Through examination of the historic and present-day trends prevailing on the residential property market, CBRE experts identify prospects for growth and organizational challenges presented by the process of establishing a portfolio of rental apartments as well as the steps to be taken prior to introduction of this type of an offer onto the market.