The Polish residential market is characterized by a supply shortfall in rental housing. It is one of the least saturated residential markets in Europe with an increasing housing gap of over 3.5m apartments. Furthermore, the absolute size of the Polish market (c. 38m inhabitants, 6th largest EU country by population), coupled with a rising service sector and favorable demographic development (“generation rent” – growing preference for rental housing), is paving way TAG’s market entry in Poland.
As of 31 December 2020, the contractually secured pipeline for the construction of apartments comprises a total of 8,742 units, of which 5,140 units are in Wrocław, 2,662 units in Poznan, and 940 units in Łódź. Compared to the level at the end of Q3 2020 (7,644 units, including 5,039 in Wrocław, 2,015 units in Poznań, and 590 units in Łódź), the pipeline has thus been enlarged by 101 apartments in Wrocław, 1,075 units in Poznań, and 350 units in Łódź.
According to current plans, of the total approx. 8,742 units at 31 December 2020, approx. 3,039 units are built for sale, while approx. 5,703 units are to be let upon completion, thereby forming the basis for the roughly 8,000 to 10,000 units that are to be built up as a rental portfolio in Poland within a period of three to five years. The first rental income is expected in Poland upon completion of the first rental projects in the course of the 2021 financial year. Until then, the business activities in Poland will continue to be almost exclusively in the sale of residential units.