In June, more new apartment rental listings appeared on the market, but the number of tenants grew even faster. Experts from GetHome.pl analysed whether the start of the seasonal increase in demand was strong enough to affect rents.
According to data from the real estate portal search engine Adradar, the number of apartment listings that were either rented out or withdrawn from the market by owners rose in June to around 49,000, an increase of nearly 14 percent compared with May. At the same time, around 47,000 new rental listings appeared on the market, 2 percent more than a month earlier. As a result, the total supply fell from around 86,000 to 84,000 apartments. However, it was still 12 percent higher than a year earlier.
“June brought the first signs of a summer pick-up in demand. This is a typical phenomenon for the rental market. We observed a similar pattern in previous years as well,” said Marek Wielgo, an expert at GetHome.pl.
Market history shows that from June through autumn, both the number of new listings and tenant interest usually increase. This seasonal shift may be influenced, among other factors, by stronger interest among owners in short-term rentals. At the same time, summer is traditionally a period of increased household mobility. School holidays make it easier for families to change their place of residence without having to move children to a new school during the school year.
Supply Fell in Most Cities, with Kraków the Exception
In June, the number of available rental apartments declined in most of the largest metropolitan areas. In Warsaw, supply fell to around 15,500 apartments, in Wrocław to 6,300, in Poznań to 3,200, in Łódź to 2,900, and in Katowice to 2,300. It remained unchanged in Gdańsk, where tenants had around 3,300 apartments to choose from.
Against this backdrop, Kraków stood out. It was the only city analysed where supply also increased in June, reaching around 8,000 apartments. The number of available units has been rising there continuously since the beginning of the year, setting Kraków apart from the other markets. Compared with June last year, rental supply in Kraków is as much as 23 percent higher.
An even larger year-on-year increase was recorded only in Gdańsk, where supply rose by 43 percent. At the same time, since spring the number of rental apartments available there has started to decline, most likely due to the beginning of the tourist season.
“Despite the June decline, the supply of rental apartments in most large cities is clearly higher than a year ago. This means that tenants still have a very wide choice of units, while owners have to compete not only on apartment standard, but increasingly also on price,” commented the GetHome.pl expert.
Summer Demand Has Not Pushed Rents Higher
The growing activity of tenants has so far not translated into higher rental rates. In June, median rents changed only marginally. In Warsaw, the median monthly rent was around PLN 4,250. In Kraków and Gdańsk it stood at PLN 3,000, in Wrocław at PLN 2,750, in Poznań at PLN 2,500, in Łódź at PLN 2,100, and in Katowice at PLN 2,090.
Compared with June last year, rents were lower in Warsaw by 8 percent, in Gdańsk by 6 percent, in Łódź by 5 percent, in Wrocław by 2 percent and in Poznań by 1 percent. In Kraków and Katowice they remained unchanged.
“The start of the seasonal recovery has not yet changed the balance of power in the market. Demand is indeed growing, but the large supply of apartments is limiting pressure for rent increases. If a high supply of new listings continues in the coming months and the seasonal growth in demand follows the existing pattern, tenants should retain a comfortable level of choice and a strong negotiating position also in the autumn,” concluded Marek Wielgo.
Source: CEO.com.pl
