In September, a 13% decrease in the number of apartment rentals searches was noted, compared to the previous month. This relates to all provincial cities, with the most significant change visible in Krakow (-33%). At the same time, a typical for September mild correction of rates occurred. However, the average cost of renting an apartment did not increase month by month, as was the case in previous years, but decreased – by 0.9% compared to August.
Stabilization is felt in the rental market. In the last days of September, the number of apartments offered for rent amounted to 24,879, indicating a 12% increase on the monthly basis and a return to a level similar to that at the end of June – thus before seasonal fluctuations. The largest leap of the available base of advertisements can be seen in Sopot (49%), which is a consequence of the ending summer period and the dominant short-term rental there. Among the provincial cities, strong increases are recorded in Zielona Góra, Kielce as well as Warsaw and Kraków – by 34%, 21% and 18%, respectively, while a decrease in supply can be observed in three locations – Olsztyn (-13%), Opole (-5%), and also in Rzeszów (-5%).
“The growing supply of apartments for rent has halted the price increase in the market. The price decrease in September on a monthly basis – although very marginal – is a kind of anomaly. However, fundamental changes can be seen when looking at the offer rates on an annual scale. In September 2022, it was an increase of 29%, a year later 7%, and now it is at the level of 2.1%. It is hard to clearly probe whether this trend will continue. However, it is certain that the flattening of the price change dynamics, combined with lower demand, is a desirable situation from the point of view of tenants, including students looking for last-minute accommodation. It gives a larger field for negotiation” – explains Milena Chełchowska, a real estate market expert at Otodom.
Prices for the first time in Q3 went down
In September 2024, for renting an apartment in the main cities of Poland, one had to pay an average of 3,581 PLN. The highest average rates apply to Warsaw – nearly 5,003 PLN. However, there one of the most significant price drops month on month occurred (-2.9%). A similar change can also be seen in the Tricity and Olsztyn – by -3% and -2.5%, respectively. On the other hand, the largest increases in offer rates are observed in Kielce (2.5%) and Rzeszów (2.3%), where the cost of renting an apartment averages 2,035 PLN and 2,686 PLN respectively. Kielce is one of the three cheapest locations among the provincial cities. Similar amounts have to be allocated for the rental of an apartment in Bydgoszcz (2,030 PLN) and Łódź (2,105 PLN).
Lower demand, but two-room apartments still in focus
As predicted, in September the demand for apartments for rent began to decline. The interest of searchers was mainly focused on two-room offers with an area of over 40 sq m (21% of all searches), two-room ones above 30 sq m (17%), and three-room ones above 50 sq m (10%). Interestingly, there is practically no demand on the market for premises with five or more rooms (0.36%). This may result from both the economy and the changing needs of tenants. Modern households are smaller than in the past. In addition, as shown by the “Happy Home. Apartment on the axis of time” report, renting apartments and houses is primarily the domain of independent Young Adults, i.e. people up to 39 years old – as much as 56% of them in the past 12 months before the survey decided for rent. In many cases, these are people who have flown out of the family nest, have started studying, are gaining their first professional experience, have not obtained creditworthiness, do not have children, or frequently change their place of residence. It would therefore seem that five- or six-room properties are not needed by them.
So what can we expect in the context of the coming weeks?
“It seems that the situation is quite predictable, and October will not bring significant changes in the market. Owners of rental apartments used to annual increases most likely will have to give them up. The reason is increased supply, which is fueled from two sources. First, beneficiaries of the Safe Loan 2% program, who have been finishing properties purchased within its framework so far, are now releasing rented premises. Secondly, new development apartments, put into use, also serve as an investment product. In this situation, buying a property for rent is becoming less and less financially beneficial, especially for people using a mortgage loan” – explains Milena Chełchowska, an expert in the real estate market at Otodom.
Source: https://ceo.com.pl/rynek-najmu-mieszkan-ze-spadkiem-popytu-i-cen-30989
