Poland’s overcrowding rate—a measure of whether homes have sufficient rooms for the number of people in the household—is 37 percent, whereas the European Union average is 17.5 percent, according to Reuters (citing Eurostat data).

Rising interest rates, limited housing supply and a gap in the quality of leases between private/individual and institutional landlords have led to growth and a positive outlook for central Europe’s institutional residential property market. Residential rental investments (mainly in Poland and the Czech Republic) increased by 38 percent to 130 million euros ($138 million) in H1-2022, according to Reuters (citing a CMS and CBRE report).

Current private rented sector yields in central Europe are 100 to 200 basis points higher than in western Europe, with Warsaw at five percent and Prague at 4.10 percent, compared to 2.70 percent in Berlin, three percent in Amsterdam, 3.25 percent in London and two percent in Zurich, according to the report (citing data from Cushman & Wakefield).

Last Updated on December 25, 2022 by Ramin Seddiq