Senior Living and Student Housing Investments in Poland: How to enter the market safely and achieve a high ROI?

Poland is currently attracting record levels of interest from foreign investors. For investment funds, the senior living and student housing sectors are currently the markets with the highest potential for returns in Central and Eastern Europe.

However, high returns go hand in hand with stringent procedural requirements. How can you navigate the Polish investment process in a predictable and profitable manner? Lafrentz’s experts offer some guidance on what to look out for.

Why does foreign capital choose Poland?

For several years now, our country has been steadily strengthening its position as an investment destination. High demand for modern infrastructure, growing social needs and ambitious energy transition targets are the main attractions for institutional funds.

– The Polish market currently offers some of the highest rates of return in Europe, but it requires local expertise – notes Mateusz Durski, Deputy Chairman of the Management Board at Lafrentz Polska.

Importantly, the administration’s approach is changing. Both local authorities and central government bodies are increasingly willing to collaborate with foreign investors, seeing this as an opportunity to resolve issues in sectors facing shortages. The trend towards simplifying planning and environmental procedures is positive, although much depends on the specific location.

4 barriers that may take investors by surprise in Poland

Despite the market’s appeal, the pace and logic of Polish administrative procedures can pose a challenge for Western players. Without a local adviser, the project schedule can be completely disrupted by four main obstacles:

1. The Complex Building Act: The system of planning permission and environmental decisions is a multi-stage process.
2. Environmental regulations: These require detailed impact assessments and public consultation.
3. Contractual risks: Fluctuations in material prices and staff shortages among contractors require close monitoring.
4. Planning considerations: The absence of local development plans (MPZP) often leads to delays in the procedures.

– Projects that are carried out at a predictable pace in other countries may encounter formal and contractual barriers in Poland – warns Mateusz Durski.

Senior Living and Student Accommodation – where does the potential lie?

An analysis of market data reveals two sectors with stable, long-term demand:

1. Senior Housing By
   2050, around 40% of Poles will be over 60. At present, private facilities meet only around 2% of the needs of the over-80s population, whilst occupancy rates at existing centres stand at 95%. This represents a huge market opportunity for modern operators.
2. Student Accommodation (Private halls of residence)
   The number of international students in Poland has exceeded 108,000 and is growing by 10–15% annually. Meanwhile, there are fewer than 20,000 beds available in modern halls of residence. The shortfall is enormous.

How to invest safely in Poland? 3 golden rules

To avoid having to ‘put out fires’ during the construction phase, Lafrentz’s experts recommend three key steps:

Rule 1: A local partner from day one

A technical and procedural consultant should be involved in the project as early as the feasibility study and site selection stage. This will help you avoid purchasing land subject to environmental restrictions or lacking access to infrastructure.

Rule 2: A realistic timetable

The waiting time for administrative decisions in Poland varies from region to region. Assuming that the procedures will work in exactly the same way as in Germany or France is one of the most common mistakes, leading to months of delay.

Rule 3: Contractual Compliance (FIDIC Standards)

The use of tried-and-tested contract templates and transparent oversight of contractors minimise the risk of disputes and uncontrolled cost increases.

Summary: Experience as the key to profit

“We offer a comprehensive service – from pre-investment analyses and design right through to supervision and the handover of turnkey projects,” concludes Mateusz Durski.

For over 30 years, Lafrentz Polska has been helping foreign investors enter the Polish market with confidence. By combining engineering supervision with cost optimisation, we ensure that ambitious projects in the senior and student accommodation sectors become predictable and profitable ventures.