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Polish PRS market - Robert Watkins comments for Eurobuild CEE

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The October issue of Eurobuild CEE magazine is now available, including a commentary by Robert Watkins, CEO of Hamilton May, on the Polish PRS market.

Read online.

The Polish PRS market has been recording a clearly accelerated pace of development for several years, but it still remains a niche segment representing approximately 1% of the total rental market in Poland. Rental demand remains strong, although not at levels seen in second half of 2022. High interest rates and high housing prices are increasing the demand in the rental market which has been exacerbated by the war in Ukraine. With growing pipeline of projects across most major cities in Poland we can see a huge potential for growth to reach levels seen in Western European Countries. PRS sector grew approximately 40% in 2022 from a low base with approximately 10,000 apartments available. The new investors are entering the market. Even if facing some challenges such as decreased willingness among developers to negotiate with funds, while they are back to selling to individuals due to a 2% mortgage scheme, investors are confident moving forward.

In Hamilton May we are sure that institutional lease/PRS has been accepted by the Polish rental market. In NREP investments operated by Hamilton Asset Management, such as Lett Kłobucka and Lett Lazurowa, there are tenants of many nationalities, although Poles predominate. Most of the tenants are young professionals, families, also multi-generational, students and singles. The biggest advantage of the PRS products is they are for everyone offering the benefits of living in a managed property. We can already see some more PRS products entering the polish market such as Lett Markowska in Warsaw's Praga District or more specific one Noli Studios - co-living concept for flexible stays (opening in November) both by NREP. Also student housing market is developing quickly. Projects are designed from the outset for specific purpose as opposed to typical residential development adapted to PRS which characterises earlier projects. In Hamilton Asset Management we are constantly offering to our PRS business partners support for their development as we believe the expansion of institutional rental is a plan for the Polish real estate market for the coming years.

Robert Watkins, CEO of Hamilton May and Hamilton Asset Management

Hamilton May is fully licensed real estate company offering services primarily in the premium residential sector in sales, leasing and property management. We operate in Kraków, Warsaw and Wrocław. Since our conception in Krakow in 2004 we have continuously challenged traditional real estate practice in Poland, with a strong aspiration to change and improve the way the industry works. As a result of 20 years in business, Hamilton May has grown into a recognized brand in the Polish property market and has a reputation for maintaining high standards of professionalism and customer service.
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