Increasingly attractive mortgage financing conditions are prompting many tenants to ask whether now is the right time to buy an apartment. According to the latest analysis by Metrohouse and Credipass, under current market conditions such a decision is worth considering even with a 10% down payment. In many cases, the difference between the cost of renting and the monthly mortgage payment is relatively small, while in the longer term the balance may shift in favour of buying.
Rental prices: where is it most expensive?
For the analysis, 12 of Poland’s largest cities were taken into account. Since the average tenant usually rents a two-room apartment, this type of property was used in the calculations, assuming an area of 40 square metres. The rental price does not include service charges paid to a housing cooperative or homeowners’ association, nor additional utility costs not included in advance payments, such as electricity. Presenting the data in this way makes it easier to compare which option may be more financially advantageous for the client: renting or buying an apartment.
Unsurprisingly, among the cities analysed, people looking for rental apartments in Warsaw face the highest costs. According to Metrohouse calculations, the average rent for a 40-square-metre apartment in the capital is PLN 3,520 per month, excluding additional charges. Kraków follows with PLN 2,800, while Gdańsk ranks third at PLN 2,680. Rental costs are slightly lower in Szczecin and Poznań. Białystok is the only city in the analysis where the average rent is below PLN 2,000. The group of cities with relatively affordable rental apartments also includes Katowice, Olsztyn and Bydgoszcz.
Renting or buying?
The analysis also examined what the most favourable monthly mortgage payment would look like for the analysed apartment. The calculations show that even with a 10% down payment, the difference between the cost of renting and the cost of servicing a mortgage often remains relatively small. In many cases, it is comparable to everyday discretionary spending, such as several restaurant visits per month.
In Kraków, renting remains the cheaper option. The difference between rent and the mortgage instalment is the highest there, at PLN 346 per month. In Gdańsk, the difference is PLN 148, while in Warsaw it is already marginal, at just PLN 18. In the remaining locations analysed, including large urban centres such as Łódź, Katowice, Olsztyn and Szczecin, the mortgage payment with a 10% down payment is close enough to rental costs that remaining in the rental model no longer has an obvious economic justification.
The cost relationship changes more clearly when the down payment increases to 20%. In this scenario, in all analysed cities, the monthly mortgage payment falls below the average cost of renting. The greatest financial advantage of buying is visible in Bydgoszcz and Szczecin, although even in Warsaw the potential difference may reach around PLN 500 per month in favour of the property owner.
“The decision to buy an apartment should not be based solely on a simple comparison of monthly costs. We increasingly see situations in which the difference between rent and a mortgage payment is symbolic, while the client is building their own wealth instead of financing someone else’s property. Non-financial factors should also be taken into account, such as housing stability and the freedom to arrange the space. In the current market conditions, however, proper preparation for the mortgage process and choosing a bank that can provide an efficient decision are crucial,” says Marek Jackiewicz, financial expert at Credipass.
| City | Price per sq m | Price of a 40 sq m apartment | Rental price per sq m | Monthly rent | Mortgage payment with 10% down payment | Mortgage payment with 20% down payment | Difference between rent and mortgage payment with 10% down payment | Difference between rent and mortgage payment with 20% down payment |
| Białystok | PLN 9,372 | PLN 374,880 | PLN 48 | PLN 1,920 | PLN 1,979 | PLN 1,684 | -PLN 59 | PLN 236 |
| Bydgoszcz | PLN 7,957 | PLN 318,280 | PLN 52 | PLN 2,080 | PLN 1,680 | PLN 1,429 | PLN 400 | PLN 651 |
| Gdańsk | PLN 13,392 | PLN 535,680 | PLN 67 | PLN 2,680 | PLN 2,828 | PLN 2,406 | -PLN 148 | PLN 274 |
| Katowice | PLN 8,188 | PLN 327,520 | PLN 50 | PLN 2,000 | PLN 1,729 | PLN 1,471 | PLN 271 | PLN 529 |
| Kraków | PLN 14,898 | PLN 595,920 | PLN 70 | PLN 2,800 | PLN 3,146 | PLN 2,677 | -PLN 346 | PLN 123 |
| Lublin | PLN 9,951 | PLN 398,040 | PLN 54 | PLN 2,160 | PLN 2,101 | PLN 1,788 | PLN 59 | PLN 372 |
| Łódź | PLN 8,038 | PLN 321,520 | PLN 55 | PLN 2,200 | PLN 1,697 | PLN 1,444 | PLN 503 | PLN 756 |
| Olsztyn | PLN 8,683 | PLN 347,320 | PLN 52 | PLN 2,080 | PLN 1,834 | PLN 1,560 | PLN 246 | PLN 520 |
| Poznań | PLN 10,636 | PLN 425,440 | PLN 57 | PLN 2,280 | PLN 2,246 | PLN 1,911 | PLN 34 | PLN 369 |
| Szczecin | PLN 9,272 | PLN 370,880 | PLN 60 | PLN 2,400 | PLN 1,958 | PLN 1,666 | PLN 442 | PLN 734 |
| Warsaw | PLN 16,750 | PLN 670,000 | PLN 88 | PLN 3,520 | PLN 3,538 | PLN 3,009 | -PLN 18 | PLN 511 |
| Wrocław | PLN 12,546 | PLN 501,840 | PLN 65 | PLN 2,600 | PLN 2,650 | PLN 2,254 | -PLN 50 | PLN 346 |
Source: Credipass and Metrohouse own analysis based on apartment transaction data from NBP reports. Mortgage payment with a 10% down payment: interest rate of 5.8%. Mortgage payment with a 20% down payment: interest rate of 5.4%. A negative value in the difference column means that rent is lower than the mortgage payment.
