Poland’s private-rented sector (PRS) is growing rapidly, though from a low base. The BPCC’s Real Estate & Construction Group has already held events on the subject; given the high level of interest in PRS development, another one was held on 29 May 2025, at the Warsaw offices of law firm Hoogells, together with PINK, the Polish chamber of commercial property. The discussions focused around a presentation given by Mirosław Metych, partner and head of M&A, and Adrianna Kończak, senior associate, Hoogells, entitled Legal, regulatory and financial aspects of the PRS sector in Poland.
Demand was so high that the breakfast event had to be repeated the same afternoon, ensuring the meeting’s dynamic interactive format in which every participant could comment and ask questions.
Fundamental assumptions, opportunities, and investment prospects within the PRS, as well as its legal frameworks and broader regulatory environment. Understanding these legal frameworks and their practical application was highlighted as crucial for developers, property managers, financing entities, institutional investors, and sectoral funds operating in the PRS. The event provided attendees – developers, property managers and investors, real estate advisors – with a deeper understanding of the legal and regulatory aspects of the PRS sector in Poland.
Whilst there are 1.2 million people living in privately let homes in Poland, there are only some 30,000 PRS units, though further growth is expected to be rapid, driven by high demand. The vast majority of these are rented out directly to individuals (many of whom are foreigners, inter alia citizens of Belarus or Ukraine). There is also latent demand from the operators of Poland’s shared-service centres, employing large numbers of young people coming to work from other parts of Poland or from abroad. For the SSCs, the concept of accommodation-as-a-service is very attractive. However, demand from individuals is so great that developers find it easy enough to rent out units without having to look for business from institutional clients.
The two main areas of uncertainty for investors revolve around taxation and planning/zoning; both issues derive from that lack of legal definition of PRS. Should PRS units be treated as hotels (8% VAT) or as residential accommodation (0% VAT)? Or as aparthotels? And what about B2B leases (23% VAT)? Whilst hotels can be developed in zones set aside for services, would that include PRS? Ultimately, lack of clarity is a problem for investors, especially foreign ones. Other legal issues revolve around tenant-protection law, the meldunek – (registration of residence with the local authority), ESG requirements, and how utility charges should be treated.
The event also looked at the options available for financing PRSs, which includes green financing – green bonds, green loans and social bonds, and considered the exchange-rate risks of building being finances in euro but collecting rent in złotys.
It is clear that while demand vastly outstrips supply, investors, developers and PRS operators should ensure there are no unforeseen problems that could arise. PRS has great potential in Poland, but investors should be aware of the legal and financial nuances that can make all the difference between profit and loss.
