Prices for rental housing in Poland in November 2023

In September–November 2023, a decline in average rental prices prevailed. The largest declines affected the most popular square footages.

In September–November 2023, a decline in average rental prices prevailed. The largest declines affected the most popular square footages.

Fewer tenants and landlords

As in previous years, the autumn months are a time of decline in the rental market. In November, interest in rentals decreased by 4% compared to the previous month. There were also fewer new advertisements than in October, by 11%. In Poznaniu and Trójmieście this decrease was even greater - 15%. The decline is also indicated by an 18% decrease in the monthly ratio of the so-called turnover rate, that is, the number of new apartments that appeared in supply in November and were also rented out in November. There were 6.5 thousand of them versus 8 thousand in October. The number of apartments offered for rent is also decreasing.

In November, among 16 provincial cities, only Olsztynie remained at a level close to October. In other cities it decreased significantly - by 6% in Szczecinie; by 10% in Krakowie, Katowicach, Trójmieście and Warszawie; by 20% in Rzeszowie, Kielcach and Białymstoku; by almost 25% in Zielonej Gorze.

Small apartments are overrated

Despite the decrease in supply, average supply prices also decreased in November in most cities analyzed. The strongest decline was recorded for the most popular apartment premises with an area of 40 to 59 sq.m.

Landlords in Gdyni received almost 4% less than in October. In turn, almost 3% reduction in rental prices was recorded in Gdańsku, Wrocławiu, Szczecinie and Krakowie, the most expensive cities in Poland after Warsaw.

In the case of Trójmiasta, as well as Poznania and Lublina, this is the third month in a row with a reduction in rental prices. In Łodzi, the average offer price for the analyzed footage decreased for the fourth time in a row. In turn, in Warszawie November brought some stabilization, expressed by an increase of only 0.3% month-on-month.

The average cost of renting apartments with an area of less than 40 sq.m. also decreased. The strongest correction occurred in Gdyni (-3.8% m/m). The previous three months, contrary to prevailing trends, brought rent increases here. For the third month in a row (this time by -2.5% m/m) the average supply price in Gdańsku decreased. The average cost of one-room apartments for rent in Poznaniu and Wrocławiu also decreased by almost 3%.

The capital of Lower Silesia was, along with Łodzi, the only city analyzed where all footage in November 2023 was rated on average lower than a year ago. For the smallest apartments, tenants paid on average 6.2% (nominally PLN 158/month) less than in November 2022. In Łodzi, in turn, the year-on-year decrease exceeded 12%.

Less significant year-on-year rent reductions were recorded for larger apartments (40-59 sq.m.) - from 2.2% in Wrocławiu to 5% in Łodzi.

In other major Polish cities, average asking prices are still higher than a year ago, but in most cases the increase was less than 5%. Only advertisements for the rental of large apartments (60-89 sq.m.) recorded a double-digit increase in average supply prices year-on-year. This situation occurred in Gdyni (+15.6%) y/y) and Katowicach (+12.7% y/y).

In two years, rental prices have increased by 50%

However, it should be remembered that, despite the autumn correction and relatively small year-on-year growth, average asking prices are still at their peak. Compared to November 2021, we are talking about higher average rates (for studios) from 19% in Szczecinie to almost 45% in Warszawie and Krakowie.

In turn, for apartments ranging from 40 to 59 sq. m. an increase was recorded from almost 24% (Bydgoszcz and Łódź) to 50% (Kraków).

Source: website bankier.pl