The interest in rental apartments has not been seen for a long time – in July there was a 23% increase in searches in this category, suggesting that tenants began their search faster than usual. The absence of significant price increases also encouraged them. Unfortunately, the choice is becoming smaller – at the end of the month, the database of offers decreased to 22.2 thousand. Therefore, soon rooms and dormitories, of which we have the most on the market since 2022, will also increase in price – this is according to the “Rental Market Report” by Otodom.
A clear recovery on the rental market is a sign that the largest demand group in this segment has begun intensive searches. As a result, the available number of rental apartments shrank at the end of July 2024 and amounted to 22.2 thousand. (-7.9% m/m) – this is the smallest result this year and is practically at the same level as in July 2023. There are fewer offers, even though 17.3 thousand. advertisements were added, which is 17% more than in the previous month and nearly 5.8 thousand. were reactivated (+16.9% m/m). And what about rotation, i.e. ads added, which were removed in the same month? The rotation level fell slightly. We are talking about 5.4 thousand. offers, which translates into a decrease of 4% m/m.
“In July, the number of available rental apartments was already 8% smaller nationwide, and prices higher by 1.2%. This may mean that there will be no better time for students to rent an apartment and the database will only shrink. Admittedly, a lot of new apartments have recently hit the market, in good locations, bought for investment purposes in 2021-2022, but most of them are already rented. Year after year, we see how tenants’ behaviors are changing, who, taught by the experience of previous years, know when the hottest period of the year is and do not postpone their search until the last moment – ” says Agata Stachowiak, an expert on the real estate market of Otodom.
Comparing to the situation in June, the offer most shrank in Olsztyn (-20%), Krakow (-17%) and Szczecin (-13%). Also in Poznań, those looking for a rental have fewer and fewer choices (-9% compared to June). However, when we consider specific numbers and absolute values, Warsaw (less by 387 apartments) and Wrocław (less by 387 apartments 155) deserve attention. Meanwhile, the database of offers has enlarged by additional properties mainly in seaside resorts, i.e. in Sopot (+63%), Gdańsk (+14%) and Gdynia (+6%), where apartments are smoothly transferred from holiday short-term rentals to long-term rentals.
Season rental price correction
People looking for a rental apartment in July may have encountered slightly higher rates – the average offer price was PLN 3,548, which means an increase of 1.2% compared to the previous month and 2.2% compared to the prices from July 2023. The largest price increases were recorded by Warsaw and Gdańsk – we are talking about 3%, i.e. approx. PLN 170 and PLN 90, respectively. In other cities, it is calmer in terms of prices. In Kraków, the increase was 2%, in Poznań and Wrocław 1-1.5%. If we compare the current prices with last year’s ones, we will note an increase in rental rates in 4 cities: Poznan and Krakow (by 3-4%), and Katowice and Warsaw (by 1-2%). This is partly due to the change in the structure of the available offer – in Kraków, Poznań and Wrocław in July there is a higher share of more expensive apartments in the range of PLN 3-4 thousand in the offer, at the expense of those up to PLN 2.5 thousand. Meanwhile, in the Tri-City, the increase in the average rental rate is related to the increasing number of advertisements and the average rates for apartments with an area of 40-60 m.kw. and those larger ones (60-90 m.kw.).
“Average prices in all university cities have increased by PLN 100-150 compared to last year. This means relative price stabilization, considering that we are at the peak of the rental season. At the end of July, you had to pay the most for renting an apartment in Warsaw – almost PLN 5100 and in Krakow, Wroclaw, and Gdansk – about PLN 3100-3300. In Poznań, Katowice, and Łódź, the average rental offer rates range from PLN 2100-2500 – “says Agata Stachowiak.
Increases also affected smaller academic cities – during the month, the average rental rates went up the most in Zielona Góra and Olsztyn (+3%), and the rental cost increased in these cities by approx. PLN 50-70. There are also cities with price drops – in Wrocław by 2%, in Gdańsk and Łódź at the level of 4-5%, and thus the average cost of rent has decreased here over the year by PLN 150 and PLN 120, respectively.
What kind of rentals do Poles look for?
July did not surprise in terms of parameters of apartments preferred by tenants. The most frequently searched combination was 2-room flats with a minimum area of 40 m.kw. Second and third place on the podium are occupied by larger properties – with an area of at least 50 m.kw. with 3 or 2 rooms. Among studios, those above 30 m.kw. are the most picked.
In provincial cities, 2-room apartments were most often sought, but in different budgets. The criterion of the maximum rent price of PLN 2000 was mainly adopted in Białystok, Bydgoszcz, and Kielce. PLN 500 more was the most popular threshold in Łódź, Zielona Góra, Katowice, Lublin, Olsztyn, Rzeszów, Szczecin, and Poznań. Flats for an amount up to PLN 3,000 were mostly sought in Kraków, Tri-City and Wrocław and also, interestingly, in Warsaw, where in June or May the price criterion for this area was PLN 3500. Larger flats, over 6 rooms, across the country have negligible interest and only in smaller cities such as Olsztyn, Białystok, or Lublin. This is a matter of small availability of this type of apartments but also prices – in Warsaw, you have to reckon with a cost of PLN 7,000 and more.
Rooms and dormitories – budget alternative
Currently, a large group of people looking for rental apartments are students. However, as the experience of previous years shows, some of them will clash with market realities and current prices. These, although they have been at a similar level for several months, are still not tailored to a student’s pocket. Therefore, the search for rooms and dormitories will start soon, of which we have had the most on the market since the beginning of 2022 because it’s almost 13000. In Warsaw alone, over 2000 offers are posted on olx.pl. Most of the offers come from the Mazowieckie, Lower Silesia, Malopolska, and Greater Poland provinces. However, we do not have good news, room prices have gone up – in 2022, rooms offered for more than PLN 1000 constituted 23% of all offers, this year as much as 44% of the rooms cost over a thousand zlotys. However, this increase slowed down over the last year: compared to 2023, prices have gone up by only 8%, i.e. about PLN 76.
Source: https://ceo.com.pl/rekordowy-wzrost-zainteresowania-wynajmem-mieszkan-w-lipcu-oferta-kurczy-sie-a-ceny-pozostaja-stabilne-23200
