Thursday, 18 December 2025
The Polish institutional private rented sector (PRS) has exceeded 25,000 apartments, confirming its position as one of the fastest-growing segments of the residential market, according to the latest Savills and CRIDO report “The PRS market in Poland. Commercial, legal and tax aspects.” The fourth edition of the study combines market data from Savills with regulatory and tax analysis from CRIDO and is widely used by investors and developers active in the sector.
Between January and the end of October 2025, PRS housing stock increased by more than 4,800 units, reaching approximately 25,100 apartments. This represents growth of around 24% compared to the beginning of the year. Taking into account projects under construction and those with confirmed completion dates, total supply could exceed 36,000 units by the end of 2027.
Despite the rapid expansion, market participants underline that institutional rental housing still represents an early stage of development when compared with Poland’s much larger private rental market. Experts note that the scale of PRS remains small relative to the number of individuals declaring rental income, as reflected in administrative data, while the fragmented nature of the sector and the limited availability of large residential portfolios slow the pace of expansion expected by institutional investors.
Structural changes in housing preferences continue to support PRS growth. Higher mobility, migration to large cities and limited access to mortgage financing have strengthened demand for rental housing. At the same time, tenants are increasingly attentive to service quality, transparency and contract stability offered by institutional landlords.
“Poland is entering a phase in which institutional renting is becoming a fully-fledged and rational alternative to buying a flat, especially in the largest cities,” said Jacek Kałużny, Head of Operational Capital Markets at Savills. “The high transparency of the market and the professionalisation of rental services are attracting both tenants and investors.”
Ministry of Finance data cited in the report shows that more than 1.07 million taxpayers declared income from private rentals in 2024, illustrating both the scale and fragmentation of the rental market. Although the PRS sector has grown almost tenfold since 2018, it still accounts for only around 2% of total rental housing.
Experts emphasised that renting is increasingly a conscious choice rather than a necessity, driven by lifestyle changes, professional mobility and evolving family structures.
Between January and October 2025, the largest increases in PRS supply were recorded in Kraków (1,742 units), Warsaw (1,484), Poznań (416) and Wrocław (369). The Tri-City doubled its PRS stock following the completion of three new projects, while Łódź remained the only major market without any new deliveries.
Most PRS developments continue to be located in the seven largest metropolitan areas, with an average project size of around 200 apartments.
“The availability of land, urbanisation levels and strong migration flows will keep the largest cities at the centre of PRS development,” said Wioleta Wojtczak, Head of Research at Savills. “Data for 2025 confirms stable demand, and new projects are leasing up very quickly.”
Panel participants noted that expansion beyond major cities and their central areas remains challenging, as proximity to public transport is a key tenant requirement. At the same time, similar construction costs in central and suburban locations limit the potential for rent differentiation.
Savills’ analysis shows that rents in PRS projects have remained relatively stable. In the first nine months of 2025, Gdańsk recorded rent growth of around 3%, while Warsaw, Wrocław, Łódź and Poznań saw increases of approximately 1.5%. In contrast, rents in Katowice fell by more than 6%, while Kraków remained broadly unchanged compared to the end of 2024.
According to the report, rents are strongly linked to location and building standard. Monthly rents for studios in PRS schemes typically range between PLN 2,500 and PLN 3,000, while one-bedroom apartments range from PLN 2,000 to over PLN 4,000, with the highest levels seen in premium developments and central locations.
“High-quality service and predictability of the rental process mean that PRS projects maintain good rent levels,” Wojtczak added. “This format responds to tenants’ expectations for stability, security and quality.”
Resi4Rent remains the largest PRS operator in Poland, with around 6,200 apartments, followed by Vantage Rent (3,287 units) and LifeSpot, managed by Ares and Griffin Capital Partners, with 2,450 units. Together, the three largest investors control around 48% of total PRS stock. The state-owned Rental Housing Fund follows with just under 2,500 apartments.
While the living sector in Poland, including PRS and student housing, remains characterised by limited liquidity, investor interest is growing. In the first three quarters of 2025, investment volumes reached €86.5 million, largely through forward-purchase structures.
Market participants highlighted the limited availability of completed portfolios as the main barrier to transaction activity. Building a PRS portfolio from scratch can require an investment horizon of up to ten years, driven by lengthy administrative processes. Rising financing costs and high land prices further increase the complexity of site selection and feasibility analysis.
The report also highlights regulatory uncertainty as a key challenge. The absence of PRS-specific regulations and differing interpretations by tax authorities continue to affect investment confidence.
“In the absence of dedicated regulations, the PRS sector requires detailed tax and legal analysis already at the investment design stage,” said Anna Pleskowicz, Partner at CRIDO. “Tax consequences accompany investors throughout the entire life cycle of a project.”
CRIDO experts note that uncertainty around VAT and property tax treatment can determine project viability, with additional risks emerging at the exit stage, particularly in relation to VAT adjustments. The report also points to new areas of concern, including attempts to apply higher property tax rates to vacant units and inconsistent treatment of student housing.
Despite these challenges, both Savills and CRIDO conclude that the Polish PRS market still offers significant long-term growth potential, supported by demographic trends, urbanisation and increasing acceptance of renting as a long-term housing solution.
Source: Savills and CRIDO
