Institutional Rental in Poland: A Niche That Wants to Become the Standard

The PRS (Private Rented Sector), or institutional rental sector, is dynamically reshaping the Polish real estate market by offering a professional alternative to the traditional model of renting from private individuals. Although it still remains a niche nationwide (accounting for less than 1% of the housing stock), the number of units operating under this model is growing rapidly – at the turn of 2024 and 2025, it exceeded the threshold of 25,000 units. The limited scale of available stock, regulatory ambiguity, and deeply rooted ownership patterns mean that institutional rental has not yet developed into a mature, systemic solution. Understanding these barriers is crucial for the further development of the market.

What exactly is PRS?

It is a model in which the entire building is owned not by dispersed individual investors, but by a single specialised entity – most often an investment fund or a developer. These apartments are designed from the outset for long-term rental purposes, which translates into specific amenities.

The PRS sector in Poland is still in a developmental phase, but it has significant potential. For it to gain wider traction, action is needed simultaneously on several levels: regulatory, financial, and social. In Western countries, this type of rental is a standard rather than a compromise – it offers many advantages, as the tenant’s legal and practical situation does not depend on the discretion of the landlord or the landlord’s individual and changing needs, which provides security and long-term stability.

Stable and predictable law

One of the main problems is regulatory uncertainty. Frequent legislative changes discourage investors.

Proposals for sensible measures to eliminate this problem include:

• simplifying institutional rental procedures clear rules on eviction and the protection of both parties limiting sudden tax changes
• It should be remembered that for major market players (such as investment funds), legal certainty is crucial when making decisions with a 10–20 year horizon.
• Tax and financial incentives

It should not be overlooked that PRS competes with the owner-occupied and for-sale housing market, which is particularly strong in Poland. Therefore, for this sector to gain in popularity, the following are necessary:

• preferential tax treatment for institutional rental incentives for investors developing housing for rental purposes access to low-cost financing (for example, through state-owned banks)

Examples from countries such as Germany and the United Kingdom show that fiscal support can significantly accelerate the development of PRS.

• Cultural change: “renting is not a last resort”
• In Poland, the prevailing model is still that “everyone must own a home.” In order to normalise the PRS sector, it is necessary to introduce:
• financial education (demonstrating that renting may be a rational choice),

Examples from countries such as Germany and the United Kingdom show that fiscal support significantly accelerates the development of the PRS.

3. A cultural shift: ‘renting is not a last resort’

In Poland, the model of ‘everyone must own their own home’ continues to prevail. To foster the private rental sector, the following measures should be implemented:

• financial education (showing that renting can be a sensible choice),
• the promotion of labour mobility,
• a shift in the media narrative – not everyone needs to own property to be regarded as someone living a stable and comfortable life

PRS has real potential to become one of the pillars of the Polish housing market, but it requires a consistent regulatory approach and a long-term public policy. Without a stable legal and tax framework and a shift in public perception of renting, this sector will remain the preserve of select locations and institutional capital. The decisions taken today – with a view to the next dozen or so years – will be crucial.