Is it profitable to buy an apartment for rent? Lease prices continue to decline

As the report of Expander and Rentier.io shows, rental prices in the largest markets for residential developers continue to decline. Does this mean that apartment prices will also start to fall soon, because renting is less profitable? The Swedish company Heimstaden Bostad, which has recently carried out two transactions on the Warsaw market for a total of almost two billion zlotys, has a different opinion on this subject. This company only buys apartments for rent. The international tycoon sees this as a business opportunity. What about an individual investor?

  • This year, there were two wholesale apartment sales transactions by Polish developers. The buyer in both of these cases was a Swedish rental company. This could have influenced the market prices of flats
  • The Swedes believe that renting in the future will be a profitable business. However, the current data show that its profitability is declining
  • The largest drop in rental prices during the year was recorded in Warsaw, but here too the rates are still the highest
  • Renting is more profitable than buying only in Krakow – according to the calculations of Expander and Rentier.io
  • More such stories can be found on the main page of Onet.pl

On Monday, May 24, Budimex informed about the sale of its development company Budimex Nieruchomości for PLN 1.5 billion, realizing a profit of PLN 667 million on the transaction at the capital group level. The buyer was CP Developer S.àr.l. based in Luxembourg.

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