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Apartment rental prices in Poland. Possible decline due to government programs

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Due to government housing programs, rental rates may drop by several percent, but not in large cities, estimates the consulting company Emmerson Evaluation.

“We expect that a change in the rental market may be caused by the entry into force of the Mieszkanie na start program, but it will not be spectacular and will not come suddenly,” they wrote.

The authors of the study report that in Poland, the decision to rent is most often not dictated by preferences, but by the unavailability of financing for the purchase of one's own apartment.

When the beneficiaries of aid programs (Safe Credit 2% and Mieszkanie na Start) will give up renting in favor of “apartment on their own”, the number of rental premises available on the market may increase.

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Tenants pay, so they demand

“Therefore, several percent decreases in rents are possible on the market. However, no reductions should be expected in large cities due to the rising costs of living and dynamically rising apartment prices,” it was written.

According to analysts, currently, due to high rent rates, those looking for apartments for rent, agreeing to high rental costs, expect in return comfortable apartments of a better standard.

“This phenomenon will result in demand for renting relatively new, comfortable, slightly more expensive apartments and less interest in apartments requiring renovation or refreshment,” it was written.

Starter apartment

At the beginning of January, the Ministry of Development and Technology presented the assumptions of a new government program that is intended to help Poles purchase a flat. The starter apartment assumes, among other things, that individuals and families whose monthly income is within the limits specified by the ministry can receive a loan with a preferential interest rate. In the case of a 1- and 2-person household, the interest rate will be 1.5 percent, for a 3-person household – 1 percent, for a 4-person household – 0.5 percent, and for a 5-person household – 0 percent. The proposal also includes subsidies for loan repayments.

The starter apartment is scheduled to be launched in mid-2024.

Main photo source: Holes/Shutterstock

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