Inflation will trigger a boom in rental housing? Instead of buying, we will rent
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Loading... - Jeffrey McKay
- 13 Jul 2022
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Poles are deterred from investing in their own apartment by high apartment prices - in all cities they increased by 2 to 8 percent. on a quarterly basis. The turbulent situation on the housing market was also aggravated by the war over our eastern border, the consequences of which are enormous not only for Ukraine, but also for neighboring countries. A total of about 3.5 million people from Ukraine entered Poland from February 24, which caused a demand shock on the rental market.
Most of them decided to stay in large cities, which means a jump in their population in GdaÅ„sk by 25%, Kraków by 19%, and Warsaw by 15%. The consequence of this was a decrease in the availability of real estate - the number of apartment offers for rent in the largest Polish cities decreased by as much as 70%, and rental prices in some markets increased by as much as 50%.
At the same time, as a result of the war with Russia, about 391 thousand people left our country for Ukraine. people, mainly men working professionally in Poland, which resulted in a shortage of construction workers. In addition, disruptions in the raw material markets and disruption of supply chains from beyond the eastern border resulted in an increase in the cost of building materials by 29%. Due to these factors, in the first quarter of 2022, the sale of new apartments decreased by 47%. compared to the previous year, and the value of inquiries about housing loans in February decreased by 29.2 percent.
Resi4Rent, a company offering pre-paid flats in Poland, ended the last quarter with the rental of all flats from a portfolio of 2301 flats.
- Currently, each of our 8 investments is 100% occupied. Naturally, from time to time, single vacant premises appear, which results from the ending current lease agreements. Such great interest in the form of pre-paid apartments shows that the PRS market is a response to the current needs of consumers. The housing gap in large agglomerations and low creditworthiness are the basic factors prompting the decision to rent a flat rather than buy it. The great interest in letting also results from the rapid influx of Ukrainian citizens. If some of them remain in Poland, in the next few years, they may generate additional demand for flats, even in the hundreds of thousands, says SÅ‚awomir Imianowski, president of Resi4Rent.
With such a large influx of people, the institutional rental market is a natural choice, guaranteeing the possibility of renting a flat from a reliable and experienced entity, on clear and transparent terms.
- The possibility of renting more apartments in one place has recently turned out to be of great importance also for companies relocating their employees with their families, who thanks to comprehensive service and efficient relocation can settle down faster, continue working and not deal with the issues of looking for a place in your own. At Resi4Rent, in order to keep up with the demand, we design over 6,000 premises. Soon, three new facilities in Krakow and Warsaw will be commissioned - adds SÅ‚awomir Imianowski, president of Resi4Rent.
The subscription formula has a chance to affect the housing market in a similar way as it influenced the automotive or entertainment market by increasing the popularity of streaming platforms. Pre-paid flats win over private rents primarily in terms of a higher standard of newly built flats, accessibility and professional service.
- Both the results of surveys among our clients and the latest reports of independent advisors show a high customer satisfaction rate on the PRS market - practically everyone is satisfied with the rental services provided. At the end of last year, the number of people who came to us as a result of a recommendation from our other tenant was 10 percent, now it is almost 20 percent - says Alicja KoÅ›ciesza, Sales and Marketing Director at Resi4Rent. Read More…
