Experts from global real estate services firm Cushman & Wakefield note in their report The Housing Sector at the Crossroads 2.0 that the residential sector in Poland is developing ESG strategies focused on environmental aspects. However, PRS and co-living investors are also undertaking community-oriented initiatives. Is the institutional rental market in Poland aiming to be a model of sustainable practices within the residential market?
Residential developers are facing a series of challenges stemming from changes to EU legislation which are gradually being transposed into national law. Reporting in line with the guidelines of the CSRD and the EU taxonomy, adapting building designs to the requirements set out in the recently adopted recast EPBD concerning zero-emission targets for properties are just a few of the issues reshaping the Polish residential market in the context of the EU’s commitment to a sustainable economy. This is all the more important because until now residential projects have been slower to embrace changes resulting from ESG management. For instance, only recently has there been a notable increase in environmental certifications within this market segment, while such certifications have long been market standard in the office and logistics sectors. As a result, many companies in this market are now focusing on ESG audits, identifying risks associated with non-compliance with gradually emerging guidelines and prioritising tasks related to environmental sustainability and governance,”
says Katarzyna Lipka, Head of Strategic Consulting and ESG Advisory, Cushman & Wakefield Poland.
Diversity and inclusivity
We come from Scandinavia, where the institutional rental market is strong and enjoys public trust. For our tenants in Sweden or Norway, long-term rentals are naturally a safe and stable option. We realise that for many people in Poland renting is still an unpleasant necessity. However, this view is gradually changing among the younger, much more flexible generation. But families with children, including young families, expect mainly stability and safety which cannot be guaranteed by individual investors. This is why our industry’s role in raising market standards and demonstrating the social benefits of the PRS growth is so important,”
explains Przemysław Orchowicz, Group Director Operations New Countries, Country Manager Poland, Heimstaden Poland.
Given the UN Sustainable Development Goals, the professionalisation of the rental market is also underpinned by the principles of diversity and inclusivity. As a landlord, we are guided by a transparent and objective criterion, i.e. a tenant’s ability to make timely payments. At the same time, we are moving away from the concept of gated communities - we do not favour any particular client group and we actively work against discrimination which is a major issue on the traditional rental market,”
says Sławomir Imianowski, CEO of Resi4Rent.
Tenants who join the Vantage Club can also benefit from free, face-to-face consultations with experts. In Q4 2023, we launched consultations with lawyers for foreign tenants. These consultations are especially helpful for newcomers to Poland facing challenges such as applying for a residence card, making a doctor’s appointment, arranging insurance or obtaining a work permit. In early 2024, we expanded our programme to include consultations with a job coach on matters such as job searching, CV writing, career planning or reskilling,”
explains Dariusz Pawlukowicz, Management Board Member of Vantage Development.
There are many initiatives undertaken across the world to adapt urban spaces to the needs of all of us. Interestingly, the residential market is seeing the first signs of changes in this regard. To meet diverse needs, spaces should be designed to exceed the requirements laid down in legal regulations. Acoustics, lighting, signage and spatial layouts are particularly important in housing projects. However, the sense of privacy is often an overlooked issue,”
says Mariola Bitner, Head of Workplace Strategy, Associate, Leasing Agency – Office, Cushman & Wakefield.
Fostering social bonds
The risks of living alone have been well documented: a meta-analysis of nearly 150 studies shows that social isolation is linked to significant health consequences, including an approximately 30% higher risk of dying early. In fact, sharing living space is our solution to the growing problem of loneliness - a challenge that calls for new ways of dealing with it,”
says Marta Karteczka, Head of Operations, Nrep Poland.
Events organised by LivUp have been highly successful, as shown by both high attendance and the positive feedback from participants, including responses in tenant satisfaction surveys. Nearly 70% of residents also expressed interest in getting to know their neighbours during such events,”
says Adam Wilgus, Real Estate Investment Associate, LivUp.
Surprisingly, non-participating guests value being part of the Noli community in their own way. One guest has shared with us that when they walk through a vibrant lobby filled with people, they feel more at home,”
adds Marta Karteczka, Head of Operations, Nrep Poland.
An opportunity to promote sharing economy
Building laundrettes are just one option that landlords can offer tenants. Other solutions provided by investors in rental buildings may include co-working spaces, multifunctional rooms, shared gardens for growing plants, kitchens, gyms or playgrounds for children. As a result, residents gain access to a wide range of on-site amenities,”
concludes Karolina Furmańska, Living Sector Expert, Cushman & Wakefield.