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 30 June 2021, the contractually secured pipeline for the construction of flats comprises a total of 11,922 (30 June 2020: 5,800) units, of which 6,926 units are in Wrocław (30 June 2020: 4,485), 2,488 units (30 June 2020: 1,074) in Poznań, 1,072 units (30 June 2020: 240) in Łódź, and 1,436 units (30 June 2020: 0) in Gdańsk. With the acquisition of the property in Gdańsk in the second quarter of 2021, TAG now has a total of four locations in Poland.
According to current planning, of the total of 11,922 flats, 3,692 flats are intended for sale, while 8,230 are to be let after completion, thus forming the basis for the approximately 8,000 to 10,000 flats that are to be built up as a rental portfolio in Poland by the end of 2025. The first rental income in Poland has been generated since June 2021 with the completion of the first letting projects. As of 30 June 2021, 109 flats were prepared for being rented out as planned.