The institutional private rented sector (PRS) is becoming an increasingly important part of the residential market, recording supply growth and attracting both domestic and international capital. These are the key conclusions of the BNP Paribas Real Estate Poland report “Institutional Private Rented Sector (PRS)” for H2 2025.
Dynamic PRS Growth
The institutional private rented sector (PRS) in Poland continues to scale up at a robust pace. In recent years, both supply and investor interest—domestic and international alike—have been steadily picking up. In 2025 alone, 5,800 units were delivered, marking the second-highest annual result in the history of the sector and confirming that the market has moved into a phase of stable growth.
As BNP Paribas Real Estate Poland analysts point out, demand for rental housing is also on the rise. This is driven, among other factors, by the limited affordability of home ownership compared with the period of low interest rates and the operation of the “Safe Mortgage” programme. As a result, sector fundamentals remain solid.
“The attractiveness of the PRS segment is underpinned by strong market fundamentals, including persistently high demand for rental housing, long-term demographic trends and a growing preference for flexible living arrangements over home ownership. Over the medium term, the residential segment should continue to stand out as one of the key areas of the real estate market,” emphasises Arkadiusz Bielecki, Head of Valuation Department, BNP Paribas Real Estate Poland.
Large Cities Remain in the Lead
The institutional rental market in Poland remains heavily concentrated in the largest urban agglomerations. At the end of 2025, Warsaw accounted for the largest share of stock (32%), followed by Kraków (19%) and Wrocław (16%).
Among the largest schemes delivered in 2025 were Kraków Romanowicza (673 units), Katowice Korczaka (523 units), AFI Home Metro Zachód in Warsaw (517 units) and UP2U Piątkowska in Poznań (460 units).
Resi4Rent remains the market leader with a 20% share of total stock, while the Housing Sector Development Fund accounts for 16% of the market.
More Units Coming Through in Regional Markets
Between 2026 and 2027, a further 5,000 units are scheduled to come on stream. Looking at the locations of upcoming developments, regional markets are gaining traction, as reflected by the fact that Warsaw ranks only third in terms of new supply (24%). By the end of 2027, the largest number of new units is expected to be delivered in Wrocław (30%) and the Tricity (26%).
The largest schemes planned for completion over the next two years include Wrocław Bardzka (620 units) and Gdańsk Nowomiejska (569 units), both developed by Resi4Rent, as well as Lett Nocznickiego in Warsaw (480 units) delivered by NREP.
Warsaw – the Most Expensive, Regions with strong potential
Typical monthly rents for studio apartments in the PRS sector in Warsaw range from PLN 2,800 to PLN 3,900. In other major cities, rental levels are clearly lower and more diversified: PLN 2,600–3,000 in the Tricity, PLN 2,300–2,700 in Wrocław and PLN 2,200–2,700 in Kraków.
The data shows that Warsaw continues to record the highest rents, while regional markets are steadily gaining importance. Rental differentials may encourage further diversification of PRS investment beyond the capital, particularly into large regional cities offering relatively lower entry costs and stable rental demand.
Record Investment Transactions
By the end of 2025, investment transaction volumes in Poland’s PRS sector exceeded the level recorded in the record-breaking year of 2024. In H2 2025 alone, total investment into rental housing and private student accommodation reached €108 million, up 4% year-on-year.
Between January and December 2025, several landmark transactions were closed. The largest was OKAM Capital’s acquisition of the AFI Home Metro Szwedzka project (formerly Bohema) for EUR 76 million. Other notable deals included Dom Development’s purchase of AFI Metro Zachód from AFI Europe for €61 million and Moderna’s acquisition of Gdańsk Old Town from NREP for €35 million.
“The sector’s appeal stems from relatively attractive yields in the range of 5.5%–6.5%, despite the still limited scale of investment activity. At the same time, further expansion faces material constraints, including regulatory uncertainty, currency risk, as well as high land and financing costs,” notes Karolina Wojciechowska, Director, Capital Markets Department, BNP Paribas Real Estate Poland.
Home Ownership vs. Renting
According to Eurostat data, approximately 87% of Poland’s population lives in owner-occupied housing, while only 13% rents. As a result, Poland has for many years ranked among the EU countries with the lowest share of commercial rental housing.
Forecasts indicate, however, that by 2040—despite home ownership retaining its dominant role—the share of people living in owner-occupied housing will gradually edge down, giving way to a growing importance of the rental market. This trend is being supported by increasing labour mobility, an inflow of foreign workers and persistently high mortgage financing costs.
