The number of new residential construction starts in August 2022 was down by 23% on the same time last year. Asking prices in the seven largest Polish cities have risen by 66% in the last five years, with the rental growth averaging 45%. Below are some other key findings of Cushman & Wakefield’s latest report “The housing sector at the crossroads. How are the pandemic, the war and inflation changing the residential market?”.
Limited affordability to buy flats, coupled with the influx of Ukrainian refugees, has pushed rental remand across Poland to record levels. By no means, however, is this a result of only recent market changes and developments. Despite the robust development activity and boom in recent years, Poland continues to face a structural shortage of dwellings and it is feared that this deficit will be long-term and serious,
comments Katarzyna Lipka, Head of Consulting & Research, Cushman & Wakefield.
The new build market has come a to halt…
…while rents have risen across Europe
Łódź sees the sharpest rise in rents
Who rents homes in Poland?
How does the PRS fit into all this?
Adding rental flats to the housing stock by institutional investors is likely to be, in the long term, one of the solutions to the pressing problem of a shortage of dwellings. The Private Rented Sector (PRS) has been developing in Poland since 2014, with its growth gaining momentum in the last two or three years. Rental flats owned by specialized companies, however, continue to account for a small fraction of the entire housing stock in our country. Although this sector is facing many challenges, it has a huge potential which - in addition to supply factors - is also associated with a generational change and the evolution of preferences of buy-to-own vs. rent, and the rise of the sharing economy,
adds Katarzyna Lipka.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 50,000 employees in 400 offices and 60 countries. In 2021, the firm had revenue of $9.4 billion across core services of property, facilities and project management, leasing, capital markets, and valuation and other services. To learn more, visit www.cushmanwakefield.com