Apartment owners still have little justification for raising rents. Instead of bringing a market revival, April saw a decline in tenant activity. Demand was lower than in the previous month and clearly weaker than a year earlier, according to an analysis by GetHome.pl.
Data from the real estate portal search engine Adradar shows that in April the number of apartments rented out or withdrawn from the market stood at around 44,000. This represents a decline of more than 5% month on month and as much as 20% year on year. At the same time, the number of new listings fell by more than 10% month on month, to around 43,500 apartments.
“April is one of the least predictable months on the rental market. In recent years, it has more often brought a decline in demand than an increase, largely due to the Easter holidays shifting between March and April. In practice, the market simply ‘freezes’ for a week, and sometimes even for two weeks,” comments Marek Wielgo, an expert at GetHome.pl.
This does not mean, however, that there is no interest in rental housing. The market continues to attract young people starting work in large cities, as well as households postponing the purchase of their own apartment. The problem is that this group is no longer large enough to drive rent increases. In addition, the growing availability of mortgage loans means that some potential tenants are deciding to buy their own home instead.
Rents Unchanged or Lower Than a Year Ago
Weaker demand and relatively high supply are translating into stable rental rates. In April, median rents in the largest cities remained virtually unchanged compared with March, and in most cases they were lower than a year earlier.
In Warsaw, the typical rent was around PLN 4,200, the same as a month earlier, but around 7% lower than a year ago. In Kraków, the median rent remained at PLN 3,000, unchanged both month on month and year on year. In Wrocław, it stood at around PLN 2,800 and was slightly lower than a year earlier.
In Poznań, the median rent was PLN 2,500 and remained stable month on month, while in Łódź it stayed at PLN 2,100 — also unchanged compared with March, but 4% lower year on year. Katowice is an exception, where rents are still around 10% higher than a year ago.
With a large and diverse pool of listings, there is virtually no room for rent increases. Landlords are aware of the risk of losses if their apartment remains vacant for several months.
Rental Supply Stable but Higher Than a Year Ago
According to data from the Adradar real estate portal search engine, around 83,000 apartments were available for rent at the end of April. This was practically the same level as a month earlier, with a decline of only about 0.6% month on month. At the same time, supply was more than 12% higher than a year ago, confirming that the rental market remains well stocked.
In the largest cities, the number of available apartments remains high and in most cases is still increasing. In Warsaw, supply rose to around 15,800 apartments, up 1% compared with March and 6% year on year. A similar monthly increase was recorded in Kraków, where the number of listings reached 7,500 apartments, also up 1% month on month, with a much stronger annual increase of 15%. In Wrocław, the number of listings rose to around 6,200, up 3% month on month and also around 15% year on year.
Against this backdrop, Gdańsk stands out, with the number of available apartments falling for the second month in a row — by around 6% month on month in April. Even so, this market remains significantly larger than a year earlier. In Łódź and Poznań, changes were marginal, and supply was practically unchanged compared with March. In Katowice, although the market is relatively small, the number of listings increased to around 2,300 apartments, up around 5% both month on month and year on year.
All indications are that the rental market will remain stable in the coming months. Some revival in demand can be expected during the summer and ahead of the start of the academic year. However, the large supply of apartments and the gradual outflow of some tenants to the sales market will limit upward pressure on rents. As a result, over the next few months, rent stabilisation appears more likely than significant increases. For tenants, this is a very comfortable situation. For landlords, it is a signal that the market has firmly entered a phase in which they increasingly have to compete for tenants through price and apartment standard.
How Much Does Renting an Apartment Really Cost?
Marek Wielgo points out that the way rental prices are presented in listings still leaves much to be desired. Tenants have the right to expect that they will pay the amount displayed in the listing headline. In practice, however, this figure rarely reflects the full monthly cost of renting.
The actual level of expenses is usually revealed only in the listing description — and sometimes only after direct contact with the landlord. In addition to the rent itself, tenants must often pay administrative fees, the amount of which largely depends on the number of people living in the apartment, as well as utility charges based on consumption.
“Different models of price presentation operate side by side on the market: from listings showing only the landlord’s rent, through partial inclusion of administrative fees, to rare cases where offers show almost the full rental cost. Unfortunately, this variety makes it difficult to compare listings,” comments Marek Wielgo, an expert at GetHome.pl.
