The Polish rental market in 2024 is undergoing significant changes in both the long-term and short-term rental segments. After a period of dynamic rent increases in 2022-2023, the current situation appears to be stabilizing. While asking prices remain high, the reality reveals a gap between landlords’ expectations and tenants’ financial capabilities.
Long-Term Rentals: High Rates Are Harder to Sustain
In 2024, Poland’s residential rental market has seen dynamic shifts. After a calm start to the year, rent prices hit historic highs in the third quarter, only to slow down slightly in September. However, the end of the year brought renewed price growth, though analysts note that the current rate of increase suggests greater stabilization compared to previous years.
The changing market conditions are also influencing landlords’ attitudes. With a declining number of inquiries, landlords are increasingly abandoning the practice of “casting calls” for tenants and are more open to negotiations. To avoid long vacancies, many landlords are lowering their prices, reflecting a new reality for the rental market.
“The supply of apartments remains stable, and while asking prices may be slightly increasing, in practice, there is a gap between landlords’ high financial expectations and what tenants can realistically pay. Agents are observing that landlords are often willing to reduce prices to avoid long vacancies,” says Ewa Wielgórska, founder and CEO of Fairy Flats.
As a result, the difference between transactional prices and asking prices is becoming more pronounced, and the long-term rental market is adjusting after a period of steep rent increases.
According to the latest data from Otodom, as of October 2024, there were 23,800 apartments available for long-term rent, representing a 4% decrease from the previous month. This decline continues a trend observed since spring 2024, except for a temporary increase in September due to the academic year starting. Meanwhile, the number of short-term rental listings on platforms like Airbnb and Booking.com continues to grow steadily – in Warsaw, listings have increased by about 15% this year (Airdna.co data).
Short- and Medium-Term Rentals: Rapid Growth
The short-term rental segment is expanding, driven by changing societal needs. Fears of non-paying tenants are prompting many landlords to offer their properties for short-term or medium-term rentals instead. Data from Airdna.co indicates that Poland currently has around 87,000 active Airbnb listings, including 8,927 in Warsaw. According to estimates from the Mieszkanicznik Association, there are currently 1,056,780 private rental apartments in Poland (excluding municipal or TBS housing).
“Around 8.2% of all private rental apartments are fully or partially rented out via Airbnb. However, many of these units are located in buildings designated for commercial use or are owner-occupied part-time, meaning they would never have entered the long-term rental market anyway,” adds Wielgórska.
This market rarely serves as a direct alternative to hotels. In Warsaw, only 38% of short-term rental properties allow one-night stays; most prefer rentals of a week or longer. This segment fills the gap between traditional long-term rentals and hotels, catering to project-based workers who frequently relocate. These apartments offer a home-like comfort that traditional hotels often cannot match.
Long-Term vs. Short-Term Rentals in 2024
While long-term rentals face challenges from rising living costs and landlords’ expectations, short-term rentals are growing, driven by new mobility patterns and tenant preferences. Short-term rentals allow landlords to avoid the long-term risks associated with tenants but require greater management effort. In contrast, long-term rentals, while easier to manage, offer lower returns, pushing landlords toward greater flexibility in pricing negotiations.
Both segments reflect the changing dynamics of the rental market, highlighting how diverse tenant needs are shaping property owners’ strategies.
Source: ManagerPlus
