In April, the Polish rental market experienced a slowdown in both supply and tenant activity. Despite this, rental prices remained stable, with the national average holding at 3,600 PLN per month. According to experts, the recent interest rate cut is unlikely to affect the rental market in the near term, and any noticeable changes are expected to occur only in the summer months.
Signs of a Temporary Shift
April brought some changes to the rental landscape, albeit not in the direction previously anticipated. While February and March saw a steady increase in housing supply and tenant interest, April marked a reversal in these trends. The long-predicted reduction in supply only materialized last month, yet it had no significant impact on pricing. Despite minor signals of change, the rental market remained largely stable.
Mild Slowdown on Both Sides of the Market
The rental market slowed somewhat in April 2025. The number of active listings on the Otodom platform declined by 2.5% month-on-month, totaling 24,600. Compared to the same period last year, this marks a nearly 9% decrease. The number of new listings also shrank, down 19% from March.
Only a few cities defied this downward trend. Zielona Góra recorded the highest increase in listings, up 8% m/m. Modest gains were also observed in Katowice, Opole, Poznań, and Rzeszów, all under 6%. In most other cities, however, listings dropped — most notably in Lublin (-15%) and the Tri-City area (-14%).
Demand also showed signs of cooling. Interactions with rental ads fell by 10% compared to March. Although this still represents a 13% year-on-year increase, the growth rate has slowed significantly from previous months, when it often reached double digits.
“The decline in listings and weakening user activity signals that we are entering a phase of temporary slowdown in the rental market. However, there’s no indication of a lasting shift in trend. Stable prices and moderate turnover suggest a market in balance. Historically, seasonal activity tends to pick up in June, and we expect a similar pattern this year,” commented Milena Chełchowska, housing market expert at Otodom.
Rental Rates Remain Unchanged
Despite a decrease in available listings, average rental rates remained virtually unchanged. In April, tenants paid an average of 3,575 PLN per month — the same as in March and February. It’s worth noting that since autumn 2024, average prices per square meter (around 70 PLN/m²) have remained flat.
While the national average stayed steady, regional variations persisted. Warsaw remains the most expensive market with an average rent of 4,900 PLN. It’s followed by Kraków (3,300 PLN), the Tri-City (3,200 PLN), and Wrocław (3,100 PLN). These cities saw only symbolic increases in April, no more than 0.7%.
More noticeable price movements occurred in smaller provincial capitals. In Olsztyn, rents rose by 4.2%, reaching 2,300 PLN. Conversely, Rzeszów saw the largest decline among the cities analyzed — a 2.4% drop to 2,600 PLN.
Will Interest Rate Cuts Affect the Rental Market?
The much-anticipated interest rate cut by the Monetary Policy Council (RPP) — welcomed by those planning to buy a home — is not expected to influence the rental market in the short term. Otodom analysts note that, in theory, lower borrowing costs could prompt more purchases, reducing rental demand. However, any such effect will likely take months to materialize.
Moreover, data from the secondary and primary housing markets does not suggest a sudden shift. Despite record-high housing supply, potential buyers are in no rush to close deals. Otodom’s “Real Estate Sentiment Monitor” shows fewer people expect property prices to rise, which may delay purchase decisions and reduce upward pressure on rents.
“All signs point to the rental market entering a phase of seasonal calm — no dramatic changes, but also no strong catalysts for growth. The summer months, typically marked by increased student mobility, may bring a revival. For now, however, the market is characterized by stability and balance,” concludes Milena Chełchowska.
Source: CEO.com.pl
