Poland's PBSA market continues to attract new entrants

24
Jan
2025
News - Poland's PBSA market continues to attract new entrants #BNP Paribas Real Estate #PBSA #Poland #student housing

by Property Forum | Residential

Poland is one of the six largest higher education centres in Europe, ranking fifth in student population within the European Union and attracting an increasing number of international students. How many beds are available in the country’s student houses? How likely is private purpose-built student accommodation to meet the growing demand from the rising student population? These questions are explored in the latest report from BNP Paribas Real Estate Poland.


Student population in Poland

During the academic year 2023/2024, Poland had 1.25 million students, marking an increase of 1.8% compared with the previous year. With a wide array of state and private universities, a blend of academic traditions and modern educational approaches, as well as diverse study fields and formats, Poland provides an excellent environment for learning and developing new skills in preparation for the job market. Notably, Poland is also attracting an increasing number of international students. Young people who have chosen to study at Polish universities come from 179 countries and account for 9% of the student population in the country.

The largest concentrations of students are found in nine key academic centres. Warsaw leads the way with 261,000 students and 63 educational institutions. Kraków ranks second with over 130,000 students and 18 universities, followed by Wrocław, which has more than 106,000 students and 25 higher education institutions. In these cities, which attract many students, private home rental has become highly expensive and competitive. While students would prefer to find accommodation in student houses, there is a shortage of available beds. Today, university-owned student houses can accommodate up to 10% of students – or 11%, when private student housing is included.

The future of student housing and new projects on the horizon

Poland has more than 440 student houses providing approximately 115,300 beds, most of which are owned by state and private universities. Although private student houses account for around 12% of total student accommodation, the number of beds in these facilities has doubled over the last four years from 7,222 to 14,766, according to the report from BNP Paribas Real Estate Poland. Krakow and Warsaw top the league table for private student housing with 3,378 and 3,015 beds respectively, while Lublin and Bydgoszcz rank at the bottom with 724 and 136 beds respectively. Given the rising number of both Polish and international students in Poland, coupled with the shortage of beds, this market sector is set to attract growing investor interest in the coming years.

“Poland’s purpose-built student accommodation market is relatively small. Although still in its infancy and dominated by several large investors, it continues to attract new entrants representing both Polish and international capital. This demonstrates its strong potential”, says Mateusz Skubiszewski, Head of Capital Markets, BNP Paribas Real Estate Poland.

There are several new PBSA projects in various stages of development that are expected to deliver more than 2,000 beds. Most are scheduled for completion in 2025.

Major projects underway include two developments in Warsaw: one in Zakroczymska Street (400 beds, developed by Solida Capital and Xior) and another at 248 Puławska  St. (360 beds, by 1 Asset Management and Solida Capital). The PBSA development pipeline also comprises Collegia at Al. Grunwaldzka in Gdańsk (500 beds, slated for completion in 2026) and The Fizz at 4aRomanowicza St. in Kraków. With 1,000 beds, the latter project developed by The Fizz, is the largest hall of residence currently under construction. In addition, the extension of Student Depot at Al. Niepodległości 36 in Poznań will deliver another 400 beds.

The largest PBSA projects in the pipeline are located in Warsaw and Kraków, reflecting strong demand in these key academic centres, particularly from international students who are increasingly choosing private halls of residence.

Rents for private student accommodation

Rent prices for private student accommodation in Poland vary, depending on many factors, including the standard and location of the student houses, as well as the availability of additional services and amenities. The most affordable cities are Łódź and Lublin, while Kraków, Wrocław and Warsaw are the most expensive. In Warsaw, monthly rents currently range from PLN 1,400–3,300 for single rooms and from PLN 1,200–2,000 for a bed in a double room. In Kraków and Wrocław, rents for single rooms start at PLN 2,200–2,500 per month. Given home rental growth in large cities, these rates may be comparable to apartment rents. Student amenities include access to communal spaces such as gyms, study rooms and gaming or cinema rooms. Private student houses also provide the comfort of living in an environment that fosters integration and cultural exchange, which is highly valuable in adapting to a new university and city.




New leases

  • UDH, one of Poland’s largest distributors of premium imported beers, has leased approximately 1,400 sq m of modern warehouse and office space at the Park Rysy Kraków distribution centre. The tenant, which has chosen to expand its operations in southern Poland, was once again represented by AXI IMMO.
  • Golden Star Estate has secured a long-term lease agreement with global technology solutions and consulting provider C&F for nearly 1,900 sqm of office space at the Konstruktorska Business Center. Following the transaction, the property, located in Warsaw’s Mokotów business district, is now almost fully leased. The Polish branch of C&F will officially relocate to the facility at the beginning of 2027.
  • Natland Group has committed to its long-term presence at Prague-based Rohan Business Center through a lease extension covering 2,004 sqm of office space, together with storage facilities and dedicated parking spaces, in a deal brokered by iO Partners.

New appointments

  • Indotek Group has announced the appointment of Diederik Bakker as Group Chief Investment Officer and Group Head of Asset Management. In his new role, the Dutch real estate investment professional will gradually assume responsibility for the company's ITAM (investment, transaction, and asset management) activities across 12 European countries, supporting the next phase of Indotek Group’s growth. His focus includes facilitating sound investment decisions across Europe and developing a group-level portfolio management strategy that combines local market knowledge with international asset management know-how.
  • Peakside Capital Advisors has appointed Bogi Gabrovic to advise the board and support its investment and acquisition activities in Poland. Gabrovic brings more than 25 years of CEE real estate experience to the role, having previously held senior executive positions at CTP, Golub & Company, and White Star Real Estate, where she managed transactions exceeding €2 billion.
  • Katarína Brydone, Jana Vlková and Vendula Maršová have been appointed as the first Equity Partners of Colliers’ Czech business. Brydone brings more than 20 years of experience in international real estate. Vlková has more than 25 years of experience in commercial real estate. Maršová, Partner and Head of Valuation and Advisory Services, brings more than 16 years of experience in real estate valuation and advisory.

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