Deer Design - Projektowanie i wykończenie wnętrz mieszkania, łazienek

IS INSTITUTIONAL
LEASING THE NEW NORMAL?

Institutional leasing is without doubt the answer to the housing shortage that the Polish real-estate market is facing. According to a number of estimates, Poland has a shortage of half a million to even three million homes! What is more, we still bring up the rear in Europe when it comes to the number of people aged 25 to 34 who live with their parents. In Poland, as many as 45% of those in this age group still have not moved out of their parents’ house, whereas the EU average is 28.6%. Data regarding the number of square metres per capita does not reflect well on us either. According to Eurostat, while in Poland there are a little over 29 square metres of residential real estate per person, the average living space in Europe is 40 square metres per inhabitant.

The housing shortage is not the only problem that the real-estate rental market faces. The residential real estate available for rental often does not respond to the current needs of tenants as far as the standard of finish, location, infrastructure, and contractual terms are concerned. PRS investment allows greater flexibility in this respect, as well as delivering higher-standard, modern, fully-equipped housing, so as to relieve tenants of the costs of additional equipment or refurbishing that they would otherwise have to bear.

This increased interest in institutional leasing is not only a rising trend on the Polish market but a pan-European phenomenon. As reported by Savills, in 2021, this industry saw a 79% increase in investment compared to the year before and a striking 120% increase compared to the average for the last five years. In Poland, by the end of July 2021, 7,266 housing units were delivered in the PRS (Private Rental Sector) formula. According to a report by Knight Frank, we can expect an additional 25.5 thousand properties to become available for rent in the near future. Judging by the number of approved investment projects, by 2025, the number of PRS housing units will grow by at least several thousand, while in the long term, it is anticipated to increase by a further 60 thousand.

Deer Design in numbers

CHALLENGES RELATED TO
INSTITUTIONAL LEASING

As a result of a growing need for mobility and more frequent relocations linked to job changes, the Poles’ attachment to property is gradually declining. PRS is an ideal solution for students, those entering the labour market, foreigners, and also families with children and all those who are unable to purchase real estate or wish to avoid long-term financial commitments. In view of such a diverse group of those interested in institutional leasing, developers need to pay particular attention to adapting properties to their varying needs. Additionally, these target groups expect a high standard of finish, functionality, and smart solutions.

An response to this demand, we have prepared solutions addressed specifically to the PRS sector. The aim of these solutions is to help investors grow their business by taking into account the most important aspect: the client, who not only chooses the location, but most importantly the interior. We have developed our offer for PRS investors in a flexible manner that gives us the possibility to adapt interiors to our clients’ budget, the design style of the building itself, and the expectations of the target user.

Our offer is based on three fundamental pillars that are of high relevance to investors:

lead time
product quality
costs

TAILOR-MADE OFFER

Our many years of experience, backed by 2000 projects implemented in Warsaw, ensure high-quality service in areas such as: interior-design projects with visualisation renderings, investment-optimisation consulting services, project supervision, warranty services, and many more. In order to streamline the process, reduce planning times, and cut costs, we have prepared, together with our suppliers, 10 unique styles that serve as a starting point in preparing our offer.

Investors may choose one of the proposed styles to receive, within a short time, an estimate of the time needed for project implementation and a final price calculation. We implement investment projects across the country, with lighting, custom-made furniture and all other furnishings included.

Our solutions are both functional and aesthetic; timeless and characterised by high quality, they will serve for years. We also provide maintenance and repair services, both during the warranty period and upon its expiration.

In PRS projects, it is important to start the offer proposal process at an early stage of the investment life cycle, which will make it possible to achieve favourable pricing conditions and plan the construction schedule down to the smallest detail.