The cost of renting housing in major cities in Poland

The cost of renting housing in major cities in Poland

Renting housing in Poland is getting cheaper, but very slowly. In the last quarter of 2023, owners of rental apartments in many cities lowered their demands, although these were small actions. One could almost also be picky about the sentences. The number of rental advertisements is 46% higher than a year ago.

Renting housing in Poland is getting cheaper, but very slowly. In the last quarter of 2023, owners of rental apartments in many cities lowered their demands, although these were small actions. One could almost also be picky about the sentences. The number of rental advertisements is 46% higher than a year ago.

The rental market typically slows down in the fourth quarter after peaking in the third quarter. And this time, the number of contacts that applicants established with owners of rental apartments was 26% less (q/q).

The slowdown is also noticeable in the dynamics of supply changes. In August and September, the number of rental offers decreased noticeably, partly due to decreased demand from students, but began to recover in October. As a result, at the end of December there were 8% more advertisements than in September.

Apartment rentals are becoming cheaper, but still expensive

In the fourth quarter of 2023, owners of rental apartments in many cities lowered their requirements. In the case of studios, in percentage terms, the average rent fell the most in Kielcach, Olsztynie and Toruniu – in these provincial cities it was approximately 6% lower than at the end of the third quarter. Average rates in Krakowie, Wrocławiu, Poznaniu, Łodzi, Szczecinie and Gorzowie Wlkp decreased by 2 to 4% (q/q). In the remaining eight voivodeship centers, the fourth quarter brought a moderate increase in rents for 1-room apartments.

Even fewer cases of average rent increases were observed for 2-room apartments. Of all voivodeship cities, this concerned only Warsaw (3% q/q), Kielc (4%) and Gorzowa Wlkp (1% q/q). In the remaining cities analyzed, rents either practically remained at the level of the third quarter (Katowice, Łódź, Rzeszów, Toruń) or fell by 1-4% (q/q) - (Białystok, Bydgoszcz, Gdańsk, Kraków, Lublin, Olsztyn, Opole , Poznań, Szczecin, Wrocław, Zielona Gora).

In recent months, rents have been slowly adjusting to tenants' capabilities, and in some places there is no longer such a large discrepancy between the expectations of owners and the capabilities of tenants. However, it is difficult to talk about big changes. The decline is only a few percent quarter on quarter, so prices are still high.

It's also difficult to expect there to be a large rent correction in 2024. The “Apartment to Start” program may become a factor in reducing prices, which may pull some people out of the market, thereby weakening the demand for rentals, but it should be remembered that inflation is still high. The higher fees in co-ops always end up being passed on to the tenants.

2023 was quieter than 2022

In 2023, the situation in the rental market has already calmed down after an extremely turbulent 2022, which was marked by huge demand, including due to refugees from Ukraine. Until recently, the market was hot, there was not enough supply, because almost everything was rented out. Temperatures have become cooler over the past four quarters.

If we compare the fourth quarter of 2023 with the fourth quarter of 2022, the number of contacts that applicants made with apartment owners was 14% less. This shows that the market has slowed down. Not everything is for rent and not at any price, although, of course, much depends on the specifics of the local market and the standards of the apartments offered. However, you can already choose among the offers.

Source: nieruchomosci.infor.pl