According to a report by Rankomat.pl and Rentier.io, rental prices in major Polish cities continue to rise, increasing by 5% year-over-year and nearly 2% month-over-month. Comparing January 2025 to December 2024, rental rates have increased in 13 out of 17 analyzed cities, while the remaining four experienced minor declines. The rental market is also seeing a surge in new listings, with the number of unique, newly added rental offers increasing by 42% in just one month. Rental profitability has also risen slightly by 0.1 percentage points, making it equivalent to a bank deposit with a 6% interest rate in January 2025. This growth in profitability is linked to rising rental prices alongside decreasing property sale prices.
Rental Listings Surge in January
In January, the number of new rental offers in major cities suddenly surged. In contrast, October, November, and December saw a month-over-month decline in new listings. January saw 26,000 new unique listings, with a total of 50,400 unique and active rental offers—a 42% and 12% increase, respectively, compared to December. While these percentage increases may seem significant, the market is still far from the record levels of over 70,000 active listings seen in August, September, and October 2023. The January figures suggest a balanced rental market.
Rental Prices Soar in Sosnowiec and Toruń
When comparing January 2025 to December 2024, rental costs rose in 13 out of 17 analyzed cities. The highest increases were observed in Toruń (+5.5%) and Sosnowiec (+5.4%). Four cities experienced slight declines, with Katowice seeing the largest drop (-0.3%).
Over the past 12 months, rental costs have increased in 16 out of 17 cities. The most significant rises were recorded in Sosnowiec and Katowice (+10%) and Gdynia and Szczecin (+8%). The only city where rental prices fell compared to the previous year was Radom (-2%), while Częstochowa remained at the same level.
Warsaw, Kraków, and Gdańsk continue to have the highest rental rates per square meter (66-78 PLN), while Częstochowa, Radom, and Sosnowiec have the lowest (40-43 PLN), which aligns with their lower average income levels compared to the top three cities.
Impact of Planned Mortgage Subsidy Program on the Rental Market
It is still uncertain how the upcoming mortgage subsidy program will affect the rental market. In theory, it could trigger another wave of tenants moving from rental properties to homeownership, reducing demand for rentals. However, this effect is expected to be significantly smaller than that caused by the previous “Safe 2% Mortgage” program. The new program is expected to have various restrictions, which will likely limit the number of participants.
In Kraków, Mortgages Are 66% More Expensive Than Renting
In Białystok, Warsaw, and Katowice, mortgage payments are over 50% higher than rental costs. The largest disparity is in Kraków, where renting a 50-square-meter apartment costs an average of 3,300 PLN, while the mortgage payment for the same property amounts to 5,487 PLN, a 66% difference.
Conversely, in Sosnowiec, the cost of renting a 50-square-meter apartment (2,150 PLN) is nearly identical to the mortgage payment for the same property (2,411 PLN), with only a 12% difference. Identical percentage differences between renting and mortgage payments were recorded in two other city pairs: Gdynia and Toruń (47%) and Poznań and Gdańsk (42%).
In all analyzed cities, mortgage payments exceed rental costs—ranging from 261 PLN in Sosnowiec to 2,187 PLN in Kraków. This is primarily due to the high-interest rate environment.
However, the difference decreases if a homebuyer has a down payment. Moreover, this comparison reflects only a short-term perspective. Over the long term, the disparity will likely shrink due to anticipated interest rate cuts. Additionally, mortgage payments contribute to home equity, allowing homeowners to recoup some of their costs upon selling, whereas rental payments are non-recoverable. While renting requires indefinite payments, mortgage payments have a fixed term.
One Year of Renting Equals Nearly 4 Square Meters of Homeownership
We also analyzed how much of a home could be paid off in one year using rental expenses, considering both annual rental costs and market property prices.
In Sosnowiec, one year of rental payments is equivalent to repaying 3.7 square meters of a mortgage. Similar figures were observed in Radom and Częstochowa (3.4 m2), which have the lowest housing prices among the analyzed cities. Szczecin also ranked high with 3.3 m2. In nine cities, the equivalent is below 3 m2, with the lowest figures in Warsaw and Białystok (2.7 m2) and Kraków (2.5 m2).
This ratio of rental costs to mortgage affordability may further favor homebuyers since listed prices tend to be higher than actual transaction prices.
Average Profitability of New Rental Investments Equals a 6% Bank Deposit
The profitability of new rental property investments is also worth noting. In net terms, accounting for all costs, the average rental yield in January was 4.84%, equivalent to a bank deposit with a 6% interest rate.
The highest net rental profitability was recorded in Sosnowiec (6.0%), while the lowest was in Kraków (4.1%).
These calculations assume a property purchase without a mortgage and continuous rental occupancy for 12 months per year. Key costs considered include brokerage fees (3%), real estate transfer tax (2%), notary fees, property renovations, furniture purchases, regular maintenance, flat-rate tax (8.5%), and property insurance. Landlords should also ensure proper insurance coverage, protecting against risks such as fire, flooding, and potential tenant damages.
Methodology
These calculations are based on 26,000 unique rental listings and 50,400 unique property sale listings, eliminating duplicates. Results are published only when the number of listings exceeds 100. The analysis covers properties listed online between January 1 and January 31, 2025.
Source: https://managerplus.pl/najem-mieszkan-drozeje-w-calej-polsce-gdzie-ceny-rosna-najszybciej-66844
