Build-to-Rent Developments: A New Era for Warsaw's Tenants

Some 2,500 new build-to-rent apartments are set to hit the Warsaw market by the end of 2026, according to recent data from the Polish Association of Developers.

This surge in build-to-rent developments matters now because Warsaw's dynamic real estate market is experiencing a significant shift towards renting, driven by a combination of factors including high property prices, limited mortgage availability, and changing lifestyles. With the average price of a one-bedroom apartment in Warsaw's city centre now exceeding 800,000 zloty, many would-be buyers are being priced out of the market and are instead turning to renting as a more affordable option.

In Warsaw, neighbourhoods such as Wola and Ochota are seeing a proliferation of build-to-rent developments, with companies like Robyg and Echo Investment leading the charge. The recently completed Retro Office House development on ul. Grzybowska, for example, offers tenants a range of amenities including a rooftop gym, cinema room, and on-site concierge service. Similarly, the forthcoming Forest Tower development in the Służewiec neighbourhood will feature a swimming pool, sauna, and private parking for residents.

What Do the Numbers Say?

A closer look at the data reveals that build-to-rent developments are not only changing the face of Warsaw's rental market but also commanding a premium price. According to a recent report by property consultancy JLL, the average monthly rent for a one-bedroom apartment in a build-to-rent development in Warsaw is around 3,500 zloty, compared to 2,800 zloty for a comparable apartment in a traditional rental building. However, with many build-to-rent developments offering additional services such as utility bill management and maintenance support, tenants may find that the overall cost of living is lower than they expect.

As the build-to-rent sector continues to grow in Warsaw, tenants would do well to carefully consider their options and weigh up the pros and cons of renting in a build-to-rent development. With many developments offering flexible lease terms and a range of amenities, build-to-rent could be an attractive option for those looking for a hassle-free rental experience. However, with prices set to remain high in the short term, tenants will need to be savvy and do their research to find the best value for money.