Add a bookmark to get started

9 March 20232 minute read

DLA Piper and Savills highlight opportunities in the Private Rented Sector of Central and Eastern Europe

Austria, Czech Republic, Poland, Hungary, Romania

DLA Piper, in cooperation with Savills, brings you a special report on the Private Rented Sector (PRS) in Central and Eastern Europe (CEE).


Within this report, you will find a comprehensive overview of the PRS market in CEE, with each chapter devoted to an individual country. We discuss the past, present, and future of the PRS market in each jurisdiction, as well as legal and tax issues to consider. Finally, we touch on ESG and how it is being incorporated into the PRS market.

PRS market in CEE
  • Austria has a well-established PRS market, driven by demand for rental housing, low-interest rates, and tax incentives. Investors are now focusing on micro-living for young professionals and student housing.
  • The Czech Republic is seeing growth in the market due to high real estate costs and a housing shortage. In Prague, around 4,780 units are currently available, and more are under construction.
  • Poland's PRS market is rapidly expanding, driven by a younger generation's preference for renting due to high apartment prices and a lack of affordability. The total investment in the PRS sector in Poland exceeded EUR1.8 billion by the end of 2022, with nearly EUR750 million recorded in 2021.
  • Hungary's market is still emerging, but a cultural preference for homeownership, high financing costs, and low yields pose significant challenges.
  • Romania's market is small and still in its early stages, but affordable housing shortages and changing attitudes towards renting present potential opportunities for growth.
The PRS market in CEE faces common challenges such as regulatory uncertainty, difficulty qualifying for financing, and identifying quality assets. Investors must carefully consider the form of the project company, location and zoning, and due diligence before initiating a PRS project in the region. Despite these challenges, investors are attracted to the market due to the strong demand for rental housing and relatively low levels of competition.


Looking to the future, the PRS market in CEE presents significant opportunities for growth. The COVID-19 pandemic has accelerated the trend of people seeking more flexible and affordable housing options, and the PRS market is well-positioned to meet this demand. Investors must navigate the challenges unique to each jurisdiction, but with careful consideration, the PRS market in CEE presents a promising investment opportunity for the future.


Developing sustainability

ESG requirements are also playing a growing role in the PRS market, with investors increasingly focused on building sustainability, self-sustainability, and the well-being of tenants. Given the lack of modern rental assets and the old age of existing housing stock in some CEE countries, the PRS market may soon become a leader in sustainability in the region.

Read the report to learn more about the PRS market in CEE.

About Savills
Savills is a leading international consulting firm operating on the real estate market. It was established in 1855 in the United Kingdom. With a network of over 700 offices in the Americas, Europe, Africa, the Asia-Pacific region, and the Middle East, it offers a wide range of professional consultancy, management, and transaction services.