Rental funds are becoming major player in the real estate market. Is this the beginning of a new trend?
According to the Rzeczpospolita daily, last year, LONG-TERM INSTITUTIONAL LEASE FUNDS BUY 5.9 THOUSAND units in 2021, accounting for 17% of all transactions – a sharp increase compared to 2020, when such entities purchased 0.9 thousand units.
Admittedly, this phenomenon – at least to some extent – may be an effect of a kind of accumulation of completed investments, but even so, INSTITUTIONAL TENANT seems to be gaining in importance.
This, in turn, means that FUNDS – besides INDIVIDUAL CUSTOMERS – MAY BE EVEN MORE REAL ESTATE BUYERS.
The more so as the coming months are likely to see a reduction in the creditworthiness of many potential buyers. This is GOOD news for landlords.
Inflation and rising interest rates are just some of the many factors that will make mortgage loans more difficult to obtain. The more so as their costs are increased by huge queues to register a mortgage in land and mortgage registers.