Colliers among first advisory companies in Poland to introduce a new operational service to the PRS market
PRS (Private Rented Sector) investments, which have been popular in Western Europe for years, are increasingly developing in Poland. In 2021, residential rental investments accounted for EUR 0.6 billion of the capital invested in the country. In response to the needs of this rapidly growing sector, Colliers, as one of the first companies in the market, launched its PRS investment management and commercialization service. The first project of this kind in Colliers’ Property Management portfolio is one of the newest investments of Atrium European Real Estate in Krakow's Krowodrza district.
After launching last year the Living Services business line, which focuses on living sector projects (including residential for rent, student housing, senior housing and residential for sale), this is another step by the company towards expanding its services for the PRS sector. Colliers already offers assistance in providing and analysing data, as well as transactional support in such projects.
“The institutional rental market in Poland is developing very dynamically and is attracting more and more interest from large players. Commercialization of new projects has accelerated and rental rates are rising, so after a short period of stagnation caused by the outbreak of the war, we expect to see more transactions. This is especially important as rising credit costs have excluded a large group of clients from the purchase market," says Michał Witkowski, Head of Living Services at Colliers.
Due to the increase of investments in the PRS market in Poland (currently there are more than 7,000 apartments available for institutional rental), a demand for a new service – commercialization of apartments and investment management – emerged. Colliers is one of the first advisory companies on the commercial real estate market to respond to this demand by providing a new, comprehensive operational service.
“We are seeing growing interest in the PRS market in Poland – investments built for rent can be one of the solutions to cope with the insufficient supply of apartments. Therefore, we have noticed the need to create a ‘one-stop-solution’ for our clients who appreciate a comprehensive approach in the living sector. PRS project management and support in the commercialization process is a natural response to market needs. We are glad that Atrium European Real Estate, which is intensively expanding its portfolio of this type of premises, has entrusted us with one of its newest investments. We believe that the extensive experience and knowledge of Colliers’ experts will be a great support for our client and the basis for further cooperation,” says Agnieszka Krzekotowska, Senior Partner and Director of the Property Management at Colliers.
Atrium European Real Estate's investment is a six-storey building with nearly 5,000 sq m of residential space consisting of 109 flats for rent, a two-level underground garage and associated infrastructure, including a large number of bicycle storage places. The building is part of the modern Nowa 5 Dzielnica residential complex developed at the junction of Wrocławska and Racławicka streets in Krakow's Krowodrza district. Residents of the complex have at their disposal three playgrounds and a fenced dog paddock.
The location is an unquestionable asset of the investment – less than 5 minutes’ drive separates the siteect from the Kraków II ring road – Aleja Trzech Wieszczów, and from the Kraków-Łobzów railway station, from which trains run to Kraków-Balice Airport. In the vicinity, there are numerous service points, shops, nurseries, kindergartens and schools, as well as a hospital. Within a few minutes walking distance, there is also the longest park in Poland – Młynówka Królewska. Krowodrza borders on the Old Town district, which will allow new residents to take advantage of the rich range of services and culturs offered by the city centre: numerous restaurants, theatres, cinemas and museums.
The first tenants are expecte to appear in the second half of June.