Private dorms

Private dorms are a growing niche in Poland’s real estate market.

Originally Published in March 2018

The market for private dormitories in Poland is just beginning to develop. We believe that an insufficient number of accommodation facilities offered by universities and a growing number of foreign exchange students creates a particular investment opportunity for the private sector. Our company wants to fill the deepening gap between the growing demand and low supply on the Polish dormitory market. .

There are about 1.35 million students in Poland, but the Ministry of Science and Higher Education estimates this number will increase to 1.49 million over the next 15 years. The demand for student accommodation is growing fast, alongside students’ rising expectations for proper lodging. The influx of international students will boost demand even more. Last year, their number grew by 24 percent. This is forcing the real estate market to come up with new solutions.

Currently, only a tenth of all students can count on accommodation in public dorms, causing the demand for private dormitories to soar. Modern student housing has an above-average rate of return and has become an attractive sector for investment. The trend for building such facilities is very popular and well-developed in the United States and Western Europe, especially the United Kingdom, Germany and the Netherlands, where various programs in English are on offer.

Even though they are mature markets, new student houses are still being built and the investors’ interest is constantly growing. This, in turn, translates into high investment returns. In 2016, according to research by Savills, the volume of investment in the sector worldwide amounted to a record $16.4 billion, the highest result in the history of this market.

The private dormitory market in Poland is young and very diverse. There are currently around 40 private dormitories in Poland. Additionally, non-public higher education institutions own 36 dormitories. The current occupancy rate at state-owned universities’ dormitories is 80 percent, while the private dormitories are almost full. Compared to state dormitories, private dormitories provide a much higher standard of living.

Metropolitan Investment is Poland’s first team specializing in investment and developer projects on the yielding property market for individual clients. We are currently conducting two private dormitory investments in Pomorskie voivodeship: Gdański Harward and Olimpijskie Apartamenty. We offer our customers the opportunity to purchase individual premises within shared buildings and rent them to students in the form of a long-term lease, without the owner’s involvement. Purchase of micro-apartments is a great investment of capital for both beginners and experienced investors.
Comment by Rafał Kroczak, Director of Business Analysis at Metropolitan Investment