Trei Real Estate GmbH has obtained the building permit for its first rental housing development in Poland. Named UP2U and consisting of three buildings, the development will create a total of 460 one- to three-room apartments with a combined floor area of around 20,000 sqm in the immediate vicinity of the town centre of Poznań.
The apartments will be fully furnished and fitted with modern kitchens and bathrooms. The complex will also include a two-storey underground car park. On the ground floor, around 875 square metres of commercial floor area will be available for service providers and local amenities. The total amount invested will equal €47 million euros. Construction work is scheduled to start before the end of this year, and the first residents could already move in by year-end 2025. The overall completion is projected for 2026.
“The Polish real estate market is highly attractive for us as developers. The vast majority of Poles owner-occupy their homes, as the private rented sector is only just beginning to evolve. Especially in the major cities, demand for modern rental apartments exceeds supply. Since the housing market is more or less unregulated, rent rates have steadily increased in recent years. With our UP2U project in Poznań, we will create urgently needed accommodation for families or singles”, commented Pepijn Morshuis, CEO of Trei Real Estate.
Poznań is located in western Poland in the Greater Poland voivodeship and is the country’s fifth largest city. It looks back on a long history, has a population of about 530,000 today, and is known for its universities and for the renaissance-style buildings of its historic town centre. Trei’s residential project will be developed in the Winiary district in the northern part of the city, which is conveniently connected to the city centre via rapid transit and bus lines. The site lies directly next to a supermarket that is let to the Biedronka chain and is also held in Trei’s inventory.
According to figures provided by PwC, the non-municipal rental housing stock in Poland added up to around 7,400 units in 2022, which is less than 1% of the entire rental housing stock of 1.21 million units. At the same time, analysts estimate that the stock will grow to more than 63,000 units by 2028, mainly in the country’s seven largest cities, these being Warsaw, Krakow, Tri-City, Łódź, Wrocław, Poznań and Katowice.
Pepijn Morshuis added: “On Poland’s rental housing market, all signs point to growth. Furthermore, the costs of building materials and raw materials are back in decline and are gradually approaching the price levels of year-end 2021. This is why we are already in the process of preparing our second rental housing project: It will be located in Warsaw and provide around 600 rental apartments.”
In the past, Trei had focused on the development of ownership apartments and retail parks of the Vendo Park brand. At present, the company has 2,300 apartments in its Poland development pipeline, roughly half of them being ownership apartments.
