After the peak of the rental season, the rental market has entered a phase of slowdown. The offer decreased by 4% in the last month and in six out of sixteen cities monitored by Otodom, a decrease in prices occurred, including in the Tri-City and Krakow. There is also less interest from seekers. The conclusion is that if you want to change your apartment, now is the time when the situation is stable and landlords are finally willing to negotiate terms.
After several years of turmoil caused by the pandemic, the outbreak of the war in Ukraine or changes regarding the alleviation of credit granting criteria, 2024 has been marked by stabilization of both the offer and prices in the rental market. At the end of October, Otodom had 23.8 thousand apartments for rent, which is 4% less than in the previous month. The trend of slight decreases has been recorded since the beginning of the year – with a break for a 12% increase in the offer in September, the month of student searches. In the majority of provincial capitals, there was a decrease in the pool of apartments for rent. The biggest reductions occurred in Zielona Góra (-22%), Lublin (-20%), and Opole (-19%), while Olsztyn (+15%) and Krakow (+4%) saw a significant increase in the number of offers.
Rent prices have also largely remained stable, although some cities recorded several percent decreases. In October 2024, the average cost of renting a property in major Polish cities reached PLN 3,634. This means an increase of 1.5% or about 53 PLN compared to September, and an increase of 1.3% compared to the same period last year. Only in three cities – Olsztyn, Bydgoszcz, and Szczecin – increases of 3% were recorded from month to month. Comparing to October 2023, the largest change, i.e., an increase of 13% pertained to Zielona Góra. Warsaw remains at the top of the most expensive cities with an average price level of PLN 5,008. In Tri-City and Krakow, rental prices were around PLN 3,200-3,300, and in Wroclaw PLN 3,100. In Szczecin and Rzeszow, the average rate was PLN 2,800. The cheapest apartments in the major Polish cities can be found in Kielce and Bydgoszcz, where rates do not exceed PLN 2,100. Interestingly, in Tri-City, Krakow, and Bialystok, prices fell by 1-2%, which in the case of the first two urban centers may be related to the end of the tourist season and a reality check for rates.
The current situation is very favorable for tenants who have gained an advantage in negotiations with property owners. Tenants start dictating terms seeing that the offer is wide and apartments are readily available. In addition to new investments from the developer market, which boosted the offer this year, apartments previously rented by people have also returned to the market, bought thanks to the Safe Loan 2% program – says Milena Chełchowska, a real estate market expert at Otodom.
What kind of apartments are tenants looking for?
Always popular two-room apartments are even more sought after – over half of apartment rental searches in Poland concern such premises. In the second place landed three-room premises (31%), and studios closed the list with 12%.
In terms of apartment sizes, two-room apartments exceeding 40 m² (22% of search queries) were the most desired, followed by also two-room ones but over 30 m² (15%), and three-room ones over 50 m² (10%). Minimal interest (only 0.48%) pertained to large apartments with five or more rooms. There have been no significant changes in terms of the preferred number of rooms or size of the apartment sought for rent compared to September.
However, in all provincial capitals, without exception, a decrease in search activity was noted. The highest dynamic of the decline was observed in Opole (-39%) and Rzeszow (-33%), the smallest – in Zielona Góra and Łódź (-10%). In most local markets, two-bedroom apartment searches dominated, varying in price range. In Tri-City, Opole, Warsaw, Wroclaw, Krakow, and Poznan the most popular were up to PLN 3,000. In Zielona Góra, Szczecin, Rzeszow, Olsztyn, Łódź, Kielce, Białystok, Bydgoszcz, and Lublin most were up to PLN 2,500, while in Katowice – up to PLN 2,000.
Predictions indicate further stability in the coming months. Seasonality of the number of offers suggests that the end of the year will bring a reduction in apartment rental offers. However, this will be a temporary change, a shake-up related to the concentration on annual Christmas celebrations. A rebound in supply and demand will most likely occur at the beginning of 2025. However, it may turn out that the period of November and December will be a good time to change the rented apartment. Property owners, considering the lower interest in offers during this time, may be more open to negotiations. So for people looking for a new place, this is a good time during the year to get better rental terms.
Source: https://ceo.com.pl/rynek-najmu-mieszkan-w-pazdzierniku-spadki-cen-i-wieksze-mozliwosci-negocjacji-dla-najemcow-60347
