High market fragmentation, rising land costs, the need to rapidly scale operations, and succession issues in companies mean the Polish residential market will face a wave of mergers and acquisitions (M&A) in the coming years, according to a report by JLL Living and Crido.
Poland's housing market has been among Europe's strongest for years. Over the past five years, Poland accounted for 52% of total housing supply in the CEE. In 2024, Poland delivered nearly 200,000 homes, slightly less than Germany (215,000) but significantly more than the UK (184,000). Despite cyclical fluctuations, the sector remains built on strong foundations: high demand, stable financing, and good condition of the largest developers.
However, the market remains highly fragmented. Hundreds of companies operate in Poland's largest agglomerations, from listed leaders to small, often family companies implementing individual projects. In such conditions, M&A become the simplest way for companies to rapidly increase their scale and enter new regional markets.
"A good example is Dom Development, which in 2017 acquired Euro Styl and Euro Styl Development, and four years later took over Sento. Thanks to both transactions, the developer quickly and effectively expanded its operations to the Tri-City and Krakow markets," comments Krystyna Pietruszyńska, Director, Living Investments at JLL Poland.
Access to attractive land in major cities is becoming an increasingly greater challenge for developers. "M&A transactions are a strategic move, allowing for rapid and significant expansion of one's own land bank. Often these are plots acquired by the acquired company many years earlier at much lower prices, which gives a huge cost advantage," says Katarzyna Żółcińska, Counsel at Crido law firm.
Consolidation also allows achieving economies of scale and entering new market segments. This direction was chosen by Develia, which purchased Polish branches of French development companies - Nexity in 2023 and Bouygues Immobilier two years later for over €166 million total. M&A can also be a way to quickly enter new market segments such as PRS.
One of the most important drivers for selling development companies in the coming years will be succession problems. "Two-thirds of Polish family businesses are managed by the first generation, so succession will be a significant challenge for the Polish economy in the coming years," comments Pietruszyńska.
Companies are also increasingly turning to the joint venture model, which allows implementing investments together with a financial or industry partner. Partnerships of this type have already been concluded by Develia and Grupo Lar, ECE and GH Development, and Echo Investment, Archicom and AFI.
