The PRS market in the CEE region gathers pace and interest from investors but the majority of activity is currently centred around the Czech Republic and Poland

There is a larger number of PRS/BTR projects being announced in the pipeline for delivery over the next few years across the region.

PRAGUE, Czech Republic, June 30, 2021  – Residential volumes across the CEE region have been  limited and averaged out annually at just over €200 million in the past 5 years. The balance between private, owner-occupied dwellings and those that are for rent in CEE lean towards ownership according to “The Private Rental Sector: Has it found a home in CEE?” just launched by Colliers in collaboration with Greenberg Traurig and Kinstellar.  From the stock of existing developer/investor owned, multiple unit PRS schemes, the Czech Republic is ahead, followed by Poland and the remaining countries behind that.

PRS Market Drivers

Kevin Turpin, Regional Director of Research, CEE, Colliers adds: “There has been a growing, fragmented rental market in many countries, as private individuals invest into residential properties for personal investment purposes. This is largely because savings sat in personal accounts are not providing any meaningful returns and the borrowing costs on a mortgage have been historically low in most markets. Many of these residential units are being rented out and in the meantime values are rising, as sales prices per square metre continue to grow year on year. Coupled with the shortage of new supply in many markets and the impact of this activity, it is also fuelling this momentum, and making the dream of owning a home for many, seemingly impossible. And it is partially for these reasons that the PRS sector and interest from investors has also been rising”.


In 2019, the highest overcrowding rates (based on the availability of rooms per person and the

average size of household) were observed in Romania (45.8 %), Latvia (42.2 %) and Bulgaria (41.1 %), and the lowest in Cyprus (2.2 %).  The data suggests that the majority of households in Central Europe are more overcrowded than the EU average. The long-term European trend shows a gradual decline in overcrowding, therefore if we assume that this trend continues and the CEE markets continue towards a convergence, then this goes someway to proving a supply gap, and that more housing is required. From this supply, we would anticipate that rental properties would make up a reasonable portion, subject to a shift in strategy from more developers and investors. This is already starting to happen in Poland and the Czech Republic.

 Stock and Pipeline

The last 5 years across CEE have seen sales prices rising rapidly, partly driven by a shortage of supply, relative ease and low cost of debt, and the desire for people to invest, in an effort to earn more money on their savings than they would receive in the bank. There are also other factors at play, such as the shortage and rising costs of suitable land plots, drawn-out and uncertain permitting processes, and the shortage and subsequent rise in costs of both construction labour and materials. According to Eurostat data, the cost for constructing new residences in the EU has increased by 15% during the period 2010 to 2019.   Among the CEE member states, the largest rises were observed in Hungary (+47 %) and Romania (+46 %).  With all of these factors taken into account, many developers across the region are not tempted to deviate from the build-to-sell model of individual units. From the stock of existing developer/investor owned, multiple unit PRS schemes, the Czech Republic is quite far ahead with ca. 57,000 units, followed by Poland with ca. 4,500 units.

Victor Constantinescu, Managing Partner, Co-head Real Estate, Bucharest, Kinstellar adds: “Indeed, PRS as an asset class is a relatively new phenomenon in CEE, and you certainly have less of it as you move farther east.  Part of it is legacy-related: home ownership was always extremely high in CEE and reflected a mentality that one needed to own one’s home.  That is no longer necessarily the case.  As demographics are changing and with prices steadily rising for development in congested areas with opportunities becoming scarcer, and many people being priced out of the market for home purchase, we expect this asset class to take hold in CEE.

We are also seeing a larger number of PRS/BTR projects being announced in the pipeline for delivery over the next few years. When tracking multi-unit PRS activity, it is clear that the markets in CEE are all in the relatively early stages of development but are also developing at different speeds. We can certainly see a more rapidly growing trend in Poland and the Czech Republic.

Leasing Conditions

In the majority of markets, it is common for leases to be defined as long and short term, with short-term typically defined as less than 3 months, but can be up to 6 months. Long term is typically 1 year or more in length, which is obviously significantly less than the standard 5+ year leases seen in other commercial sectors. In the PRS sector, 1 year leases are most common and on completion, tenants will either give notice and move out, or extend for another year.

Agata Jurek-Zbrojska, Real Estate Partner, Greenberg Traurig Poland adds: “In the CEE countries covered in this report, there were no such regulations restricting leases between private entities and there are no known plans to introduce these at the time of writing this report. Therefore, at the end of each year or lease term, landlords are within their rights to review rent, as no indexation is applied in the standard 1-year lease contract. This can of course sometimes lead to sizeable jumps in rents depending on market conditions at the time”.

Investment Market – Residential Volumes

Residential volumes across the CEE region have been rather limited and averaged out annually at just over €200 million in the past 5 years (as opposed to transaction volumes of more than €60 billion in both 2019 and 2020 across EMEA).

Dorota Wysokińska – Kuzdra, Senior Partner, Corporate Finance, CEE, Colliers adds: “This is again having everything to do with the lack of standing product available on the market as opposed to the lack of investor appetite. In a few of the cases that we have seen and advised on in CEE, investors have entered the market through acquiring a residential developer or establishing a joint venture to secure pipeline and volume. This can be a great win-win scenario for some as it can help fast track both for sale and rental product by sharing the financing load”.


Our current view is that yields, depending on the location, would range between 3.5-4.0% in

the Czech Republic and 5.0-5.5% in Poland.

Media Contacts:

Aleksandra Wasilewska
PR Director | EMEA
+48 510 020 050

Greenberg Traurig
Beata Zielińska
Real Estate Practice Development Specialist Poland
+48 22 690 6285
Agata Jurek-Zbrojska
Partner │Real Estate
+48 22 690 6211

Adela Ene
Head of Marketing │ Regional
+40 21 307 1639

About Colliers

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more about how we accelerate success at, Twitter @Colliers or LinkedIn.

 About Greenberg Traurig

Greenberg Traurig, LLP is an international, multipractice law firm with approximately 2200 attorneys serving clients from 40 offices in the United States, Latin America, Europe, Asia, and the Middle East. Greenberg Traurig Grzesiak sp.k. was named the 2021, 2019 and 2018 Law Firm of the Year Award for Poland by International Financial Law Review (IFLR). The Warsaw office of Greenberg Traurig, LLP provides legal services to clients in Central Europe and beyond and consists of approximately 100 lawyers. Team members are regularly recognized as leaders in numerous practice areas. Chambers Global, Chambers Europe, IFLR1000, and EMEA Legal 500 consistently rank them among the top tiers the areas of Corporate/M&A, Capital Markets, Real Estate, Private Equity, Tax, Banking and Finance, Project Finance, Energy, Dispute Resolution and TMT. For additional information, please visit

About Kinstellar

Kinstellar is a full-service law firm in CEE, SEE and Central Asia, with 11 fully-integrated offices in: Bulgaria (Sofia), the Czech Republic (Prague), Hungary (Budapest), Kazakhstan (Almaty and Nur-Sultan, cover the Central Asian markets), Romania Bucharest), Serbia (Belgrade, covering the majority of ex-Yugoslavian countries: Slovenia, Croatia, Bosnia & Herzegovina, Montenegro, North Macedonia), Slovakia (Bratislava), Turkey (Istanbul), Ukraine (Kyiv) and Uzbekistan (Tashkent). Operating as a single, fully integrated firm, Kinstellar delivers consistently high-quality services across all jurisdictions in an integrated and seamless style. We are particularly well suited to servicing complex transactions and advisory requirements spanning several jurisdictions. Regional in focus, Kinstellar is international in style. Fully independent since 2008, our pedigree goes back over two decades and is shaped by our time as part of a UK ‘Magic Circle’ firm. We know what clients expect, and we know how to deliver it. For additional information, please visit

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