The “Apartments for Rent Fund” established by state-owned Bank Gospodarstwa Krajowego (BGK) should have a number of apartments ready to be rented out in the first half of 2014, the bank’s CEO Dariusz Kacprzyk said last week.
The fund will have zł.5 billion at its disposal. It will invest in apartments for rent, no larger than 50-60 sqm each. At first it will buy properties in Warsaw, Kraków, Wrocław, Poznań, Tri-City and Łódź.
BGK aims to purchase a total of 20,000 apartments with the help of the fund. “We are now mulling investments that could secure the first 10-15 percent of what we need,” Mr Kacprzyk said.
The rent levels will be set to allow the fund to make a profit, which currently corresponds to some 4 percent yields on invested capital.
But the Polish state-run bank is not the only one interested in buying real estate for rent. According to a report by residential real estate consultancy REAS, there is a number of large foreign investment funds, mostly German ones, planing to buy up apartments for rent in Poland.
The REAS report, prepared with CMS Cameron McKenna and PwC, states that investing in residential properties with apartments for rent has become popular again in Western Europe.
In Western Europe apartments for rent under commercial rules account for some 49 percent of all residential real estate. Meanwhile in Poland, they account for only 3 percent. The report also shows that young Poles are becoming less focused on owning their homes, but instead increasingly choose options that allow for more mobility.
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