Poland’s Rental Market Is Shifting: More Listings, Lower Rents, and New Risks on the Horizon

REAL ESTATEPoland’s Rental Market Is Shifting: More Listings, Lower Rents, and New Risks on the Horizon

The average rent in Poland’s voivodeship cities has fallen to PLN 3,500, but prices are no longer the market’s most important signal. What stands out instead is the clear increase in supply — Otodom now lists 25,400 rental offers, marking a 4% rise in just one month. This trend is being driven primarily by the May deadline for the implementation of new regulations. In the longer term, however, the market will also have to factor in another variable. Tensions surrounding the conflict with Iran are becoming a significant risk factor that could reshape the plans of both landlords and tenants.

According to Otodom data, the rental market has seen a slight but steady monthly decline in average asking rents since the beginning of the year, at around 1%. In January, the average rental cost still stood at PLN 3,600 per month, while by March it had dropped to PLN 3,500.

“Of course, we are talking here about the average for voivodeship cities. Local markets are reacting very differently. The largest cities are seeing rent corrections, while in smaller cities prices are gradually increasing,” says Paweł Jarząbek, Otodom’s Market Research and Analysis Manager.

A widening price gap: differences between cities reach PLN 2,700

Warsaw tops the ranking, maintaining its position as the most expensive rental market in the country. Those looking for a home in the capital must be prepared for a monthly expense of around PLN 4,800. That is a significant gap compared with the second-ranked Tri-City area, where the average rental cost is PLN 1,700 lower, at PLN 3,100.

“In March, asking rent corrections affected six of the seven largest cities in Poland — Katowice, Kraków, Poznań, the Tri-City, Warsaw, and Wrocław. Łódź remained the only exception, with rents holding steady at PLN 2,300. Looking beyond the biggest seven, the most interesting situation is in Kielce. Although, at PLN 2,100, it remains the cheapest market in Otodom’s ranking, it was also the city with the highest growth динамиcs. Month on month, prices rose by 2.4%, going against the downward trend visible in the main urban centers,” adds Paweł Jarząbek.

On an annual basis, Olsztyn and Opole have emerged as the market leaders, with average asking rents rising by 9% and 5.1% respectively. Despite this strong growth, both cities still remain well below the average across the 18 markets analyzed. Residents of Opole, however, do need to reach a little deeper into their pockets, with average monthly rent now at PLN 2,500.

40 square meters and their own rules: how young people choose to live

For months, two-room apartments have remained the most popular choice by far. They accounted for more than half of all searches on Otodom in March. The most preferred units are those of around 40 square meters. This size is a natural choice for people entering adulthood, among others. It often represents a compromise between the desire for independence and financial constraints.

Interestingly, the pressure to become independent appears stronger among women than among men. According to Otodom’s report Happy Home: The Male Faces of Happiness, only 5% of men see moving out primarily as a step toward independence — 5 percentage points fewer than women.

Mateusz Łakomy, a demographer, also points to men’s stronger roots in family structures, highlighting the role of succession and tradition. “Young men are somewhat more likely to stay in their hometowns, among other reasons because they help run their parents’ businesses or farms, with the prospect of inheriting them, and they are also slightly more likely to follow family professional traditions,” the expert concludes.

How large is the pool of rental apartments?

The number of rental apartments has been growing since the beginning of the year, which means tenants have more choice. At the end of March, the number of active listings on Otodom reached 25,400, up about 4% month on month and by as many as 1,800 listings compared with the end of January.

“In March, the growth rate was similar to that seen in February, though lower than in January. The number of new listings reached 16,800, confirming that activity on the landlord side remains high. One possible reason for this trend is the planned regulatory changes, especially in the short-term rental segment. In an effort to get ahead of these rules coming into force, some apartment owners may already be shifting their properties into the long-term rental market. This increases choice for tenants and explains why the listing base is growing, even though apartments are still disappearing from the market quickly,” says Paweł Jarząbek.

March brought far greater variation in supply than previous months. Although the total number of listings in Poland increased month on month by around 900, confirming that the market is stabilizing at a relatively high level, local trends vary considerably. The highest increases were recorded in Olsztyn (+18%), Rzeszów (+14%), and Bydgoszcz (+13%). Among the largest markets, only Łódź posted double-digit growth (+10%), but the number of listings also rose in Katowice (+7%), Wrocław (+6%), Warsaw (+5%), and Poznań (+3%).

At the other end of the spectrum were Kraków, where the number of listings fell by 2%, and the Tri-City area, where the rental stock shrank by 10%.

Could the war in Iran affect Poland’s rental market?

Although current data may inspire cautious optimism, geopolitical tensions remain an important risk factor that could influence the rental market in the coming months. In a worst-case scenario, a renewed blockade of the Strait of Hormuz could lead to higher energy commodity prices and, consequently, increased housing maintenance costs and upward pressure on rents.

“Regardless of these risks, March was a month of gradual market rebalancing. With stable supply and moderate demand, pressure for further price declines in the largest cities may continue, while smaller urban centers will keep narrowing the price gap,” concludes Otodom’s Market Research and Analysis Manager.

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