Another investment from the segment of apartments for rent is being prepared in Krakow

Skanska, one of the leading construction and development companies, has finalized the purchase of a 7145 sqm investment plot in Krakow.

The seller was local private entrepreneurs. The developer plans to develop a PRS project on the site. A team from the immo lab consulting agency was responsible for preparing and conducting the transaction process.

The land purchased by Skanska is located at Przybyszewskiego Street, in a place perfectly connected with the city center, and at the same time close to green recreational areas, including Decius Park and Bielańsko-Tyniecki Landscape Park, where the Cracow Zoo is located. The investment potential of the site allows for the development of approximately 20,000 sq. m. GLA of space.

"Such perfectly located land for rental housing projects as the one on Przybyszewskiego Street is currently in high demand, especially if we take into account the shrinking land banks, which exacerbate the already high competition for investment land," comments Daniel Puchalski, Managing Partner and Co-Founder of immo lab.

The land sale finalized by immo lab confirms the huge interest of developers primarily in the rental housing segment. At the same time, this is the third such transaction that the company has carried out in the Krakow market. Last November, immo lab's agency team was responsible for the sale of two plots of land on Cystersów Street.

"The investments completed so far in the Polish PRS market are just a drop in the ocean of needs. Increasing inflation, rising interest rates and the cost of living are discouraging Poles from taking on long-term financial commitments. In this situation, many of us are beginning to see the advantages of renting apartments, and this naturally translates into interest in the offerings of PRS investors. Very high demand for land for this type of investment is observed at the moment not only in Cracow, but also in the Tri-City or Wrocław, and of course in Warsaw," explains Daniel Puchalski.

Currently, the average rates for a plot of land for residential development in the center of Warsaw are around PLN 3,500 to PLN 7,000 per square meter. In other districts, the price of 1 sq. m. ranges from PLN 1,800 to 3,000, and in regional cities, on average, from PLN 600 to 2,500, although depending on the scale of the project and its location (e.g., some districts of Krakow), one can even pay about PLN 4,500 per square meter of PUM (usable residential area).