A Sector on the Rise

Poland’s Private Rented Sector (PRS) and Build-to-Rent (BTR) market are emerging as one of Europe’s most promising real estate segments. Although still in the early stages of development, the sector is already showing strong signs of growth and offers compelling opportunities for foreign investment. In 2024, for example, the number of PRS units in Poland was 36% higher than in 2023.

Housing Demand Driven by Urban Growth

As of 2025, the number of institutional rental housing units in Poland’s major cities is estimated at around 22,000. This figure is expected to rise to more than 57,000 by 2028. Poland’s urban population continues to grow, fuelled by several factors: migration from neighbouring countries, domestic relocation to cities, and the increasing presence of international remote workers attracted by Poland’s relatively low cost of living and good infrastructure.

Rising Investment Activity

In 2024, investment volume into PRS projects in Poland exceeded EUR 150 million, more than double the figure recorded the previous year. Major international funds have already entered the Polish market, acquiring or developing residential projects in key locations including Warsaw, Kraków, Wrocław, and the Tri-City area.

Broader Investment Horizons

The growth of the PRS market is not limited to conventional rental housing. There is growing potential for new investment strategies in underdeveloped but increasingly relevant sectors. These include student housing, senior living communities, and affordable rental options for key workers. Each of these segments presents an opportunity to diversify investment portfolios while responding to changing social and demographic needs. For example, the demand for student housing is estimated at 400,000 beds.

Why Poland?

The rental sector has traditionally been dominated by private landlords. As a result, institutional investors now have a unique chance to influence rental standards, introduce professional management, and secure prime locations while the competitive landscape is still forming. Other advantages include land availability, solid construction capacity, and higher rental yields when compared with mature markets in Western Europe. These conditions provide a favourable environment for long-term investment returns. In Poland, the average gross rental yield stood at 6.08% in Q1 2025, whereas in Germany it was 3.83%, in Austria 3.7%, in France 4.63% and in Luxembourg 2.67%

A Window of Opportunity

Entering the Polish PRS and BTR market now means gaining a foothold in a sector on the verge of transformation. Investors have the opportunity not only to benefit from long-term capital growth, but also to play a role in shaping the future of rental housing in one of Europe’s fastest-developing economies. With Poland having high projected GDP growth of 3.5% in 2025.

Natalia advises on real estate transactions, asset management, and zoning. She combines legal precision with practical, business-focused solutions for clients.

MUNKERT & PARTNER Consultants GmbH

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