The rental market has slipped into the typical winter lull seen at the end of the year. In November, the supply of apartments for rent in Poland’s largest cities shrank, yet in most of them rents are lower than a year ago. Experts from GetHome.pl advise tenants to look for an affordable place now, as landlords may be more willing to make concessions.
“Many owners would rather adjust their rent expectations than risk a vacancy lasting several months. This seasonal mechanism repeats every year, but this season an additional factor is weaker demand,” explains Marek Wielgo, an expert at GetHome.pl.
As he notes, the rental market has already passed its busiest period linked to the start of the academic year. Until February, demand will gradually decline—just like supply—and consequently the number of available listings. Data from the Adradar property search engine show that in November the supply fell by 11% in Łódź (around 2,500 units), by 7% in Gdańsk (around 3,900), by 6% in Poznań (around 2,900), by 4% in Wrocław (around 5,100), by 3% in Kraków (around 6,200) and by 1% in Warsaw (around 14,600). Listings remained unchanged only in Katowice (around 2,100).
So we see a clear month-on-month seasonal drop in supply. However, year on year, five of the seven metropolitan areas—Warsaw, Kraków, Wrocław, Poznań and Katowice—have more apartments on offer than a year ago. On the other hand, between October and February the number of people searching for a rental also declines. Nationwide, the number of listings withdrawn (presumably rented out) dropped by as much as 25% in November.
Marek Wielgo stresses that, compared with a year earlier, the number of rental agreements signed in November was 9% lower. In addition, shrinking demand is accompanied by rising costs of maintaining apartments. As a result, many owners who have not yet found a tenant will likely lower their financial expectations to avoid leaving a unit empty.
Downward pressure on rents is particularly visible in Warsaw. According to GetHome.pl data, the median rent—which better reflects a “typical” rent level than the average—fell in November in the capital by as much as 5% (to around PLN 4,200). A 4% drop was also recorded in Poznań (to around PLN 2,500). Meanwhile, the median rent was unchanged in Kraków (around PLN 3,000), Gdańsk (around PLN 3,000) and Wrocław (around PLN 2,800). By contrast, Łódź saw an increase of 5% (to PLN 2,100), while Katowice recorded a 2% rise (to around PLN 2,200).
According to Wielgo, changes in median rents were driven mainly by shifts in the structure of listings. In Warsaw and Poznań, cheaper apartments may have entered the rental market—or some landlords may have reduced rents. In Łódź and Katowice, the most likely reason for the higher median was the fact that the cheapest units had already been rented out.
“The winter slowdown in activity is a natural stage of the cycle, but this year tenants have more arguments than usual. Those who can negotiate may find an apartment in a good location in December and January at a more reasonable price,” the GetHome.pl expert comments.
Source: ManagerPlus.pl
