Such as home property is placed out of Reach for increasing number of people in Emerging Central Europe rising interest rates and limited supply, global and local real Real estate investors place their bets on the nascent region private rental sector.
From almost nothing five years ago, housing enterprises property market It has grown to the point where investors say housing is starting to come in challenge office Buildings as a focus for they cash.
“There are many big cities in Central Europe region with Positive demographic and economic dynamics and unavailable housing marketStanislav Kopaczyk, head of investment for Sweden-based Eastern European Heimstaden told Reuters.
“and this is good ingredients for Residential rental investments.
investment in mainly sector in Poland and the Czech Republic jumped 38 percent to 130 million euros ($138 million). in the first half of 2022, according to the CMS and CBRE report.
And the higher yield and range for growth stimulate new Projects market players Say.
Entered the Danish-Polish NREP market in 2021 f plans For an investment of about 500 million euros in The residential and logistic sector over the next Three years, with projects in Major cities such as Warsaw, Wroclaw, Gdansk and Krakow.
Investors can see: clear market Younger chance generations become more Open for rent, trend style of contracts past in Western Europe, while supply of The modern rental inventory is very limited,” Ron Cook, CEO of NREP real division property Reuters.
Old and crowded
Poland’s largest region economySituations out for He’s growing population in Multiple large cities and estimated shortage of 3 million homesbut the Czech Republic and possibly Hungary also View opportunities.
Radim Pajar, Czech investment partner group Mint Investments said its 1.25 billion CZK ($54.81 million) fund was exploring projects. in Prague, Brno and Plzen, with a goal to me add 300 to 500 apartments in her portfolio next year.
“we currently We surprised ourselves with speed of change f how the market he told Reuters.
“we believe over the next 10 years two thirds of apartments built in This country will be sold for funds like us and only one- Sold the third to homeowners.
According to Eurostat data, Poland suffers from overcrowding rate – where homes Lack of adequate rooms for the number of people in family – of Almost 37%, compared to the EU average of 17.5%.
Much of The housing stock is communist-era flats, often prefabricated, which are very poor in need of Update. This is an advantage for developers and who can target growth pool of imgrants workers with means of comfort like high-speed Internet, gyms and leases in Einglish.
“There is a huge gap in Things like quality, stability and predictability of rents between private Owners and institutional players “This makes for Attractive entry point for PRS (private leased sector) players. “
at a price out
a traditional preference in the region To own rather than rent has been challenged by mega corporations run-up in home Prices since 2008 financial Economic fueled crisis growth and hold of Rock bottom mortgage rates.
“We will follow for us strategy of investment in Principal Polish Cities, “G City Europe (formerly Atrium European Real Estate), Managing Director, Residential for Rent Anna Dafna told Reuters. The company said plans to launch a project to me build 500 units in Warsaw in the first quarter of 2023.
current yield on residential real The estate is 100 to 200 basis points above those in Western European data and Cushman and Wakefield shows with Warsaw 5% and Prague 4.10% against 2.70% in Berlin 3% in Amsterdam and 3.25% in London.
Demographic change is another factor. Immigration to Poland before and after the war in Ukraine exacerbated the housing shortage, as did A business The services boom attracts foreign workers who demand higherHigh quality apartments added Wysokinska-Kuzdra, prof senior Partner at Collier’s in Warsaw.
Many institutional investors are looking to acquire first Engine feature f moving inWisokinska Kozdra for Reuters.
sharp rise in cross interest rates region in the last year It was priced out Some potential homebuyers. construction costs for developers go up. the war in Ukraine has also Create uncertainty, so that some investors only focus on finishing current projects.
But investors and analysts say these are red flags that will not go off the rails market set to triple by 2028, to more More than 63,000 apartments in Poland, according to a recent PricewaterhouseCoopers report.
German company TAG Immobilien AG said in Her third quarter Report it plans to me speed Construction of Residential holdings in Poland, while Budapest-based Flatco Kft is searching for potential acquisitions in Budapest.
“the demand Marta Jacoby, CEO of Flatco CFT, told Reuters.
Such as home property is placed out of Reach for increasing number of people in Emerging Central Europe rising interest rates and limited supply, global and local real Real estate investors place their bets on the nascent region private rental sector.
From almost nothing five years ago, housing enterprises property market It has grown to the point where investors say housing is starting to come in challenge office Buildings as a focus for they cash.
“There are many big cities in Central Europe region with Positive demographic and economic dynamics and unavailable housing marketStanislav Kopaczyk, head of investment for Sweden-based Eastern European Heimstaden told Reuters.
“and this is good ingredients for Residential rental investments.
investment in mainly sector in Poland and the Czech Republic jumped 38 percent to 130 million euros ($138 million). in the first half of 2022, according to the CMS and CBRE report.
And the higher yield and range for growth stimulate new Projects market players Say.
Entered the Danish-Polish NREP market in 2021 f plans For an investment of about 500 million euros in The residential and logistic sector over the next Three years, with projects in Major cities such as Warsaw, Wroclaw, Gdansk and Krakow.
Investors can see: clear market Younger chance generations become more Open for rent, trend style of contracts past in Western Europe, while supply of The modern rental inventory is very limited,” Ron Cook, CEO of NREP real division property Reuters.
Old and crowded
Poland’s largest region economySituations out for He’s growing population in Multiple large cities and estimated shortage of 3 million homesbut the Czech Republic and possibly Hungary also View opportunities.
Radim Pajar, Czech investment partner group Mint Investments said its 1.25 billion CZK ($54.81 million) fund was exploring projects. in Prague, Brno and Plzen, with a goal to me add 300 to 500 apartments in her portfolio next year.
“we currently We surprised ourselves with speed of change f how the market he told Reuters.
“we believe over the next 10 years two thirds of apartments built in This country will be sold for funds like us and only one- Sold the third to homeowners.
According to Eurostat data, Poland suffers from overcrowding rate – where homes Lack of adequate rooms for the number of people in family – of Almost 37%, compared to the EU average of 17.5%.
Much of The housing stock is communist-era flats, often prefabricated, which are very poor in need of Update. This is an advantage for developers and who can target growth pool of imgrants workers with means of comfort like high-speed Internet, gyms and leases in Einglish.
“There is a huge gap in Things like quality, stability and predictability of rents between private Owners and institutional players “This makes for Attractive entry point for PRS (private leased sector) players. “
at a price out
a traditional preference in the region To own rather than rent has been challenged by mega corporations run-up in home Prices since 2008 financial Economic fueled crisis growth and hold of Rock bottom mortgage rates.
“We will follow for us strategy of investment in Principal Polish Cities, “G City Europe (formerly Atrium European Real Estate), Managing Director, Residential for Rent Anna Dafna told Reuters. The company said plans to launch a project to me build 500 units in Warsaw in the first quarter of 2023.
current yield on residential real The estate is 100 to 200 basis points above those in Western European data and Cushman and Wakefield shows with Warsaw 5% and Prague 4.10% against 2.70% in Berlin 3% in Amsterdam and 3.25% in London.
Demographic change is another factor. Immigration to Poland before and after the war in Ukraine exacerbated the housing shortage, as did A business The services boom attracts foreign workers who demand higherHigh quality apartments added Wysokinska-Kuzdra, prof senior Partner at Collier’s in Warsaw.
Many institutional investors are looking to acquire first Engine feature f moving inWisokinska Kozdra for Reuters.
sharp rise in cross interest rates region in the last year It was priced out Some potential homebuyers. construction costs for developers go up. the war in Ukraine has also Create uncertainty, so that some investors only focus on finishing current projects.
But investors and analysts say these are red flags that will not go off the rails market set to triple by 2028, to more More than 63,000 apartments in Poland, according to a recent PricewaterhouseCoopers report.
German company TAG Immobilien AG said in Her third quarter Report it plans to me speed Construction of Residential holdings in Poland, while Budapest-based Flatco Kft is searching for potential acquisitions in Budapest.
“the demand Marta Jacoby, CEO of Flatco CFT, told Reuters.