The number of rental offers decreased in July by almost 8 percent compared to June and was the lowest this year – according to the Otodom report. It added that it was similar in July 2023. In turn, average prices increased in July by over 2 percent year-on-year.
“In the largest Polish cities, we are observing a wave of increased interest in renting. As a result, the number of available offers shrank at the end of July 2024 and amounted to 22.2 thousand, which means a decrease of -7.9% m/m). In June, there were 24.5 thousand available. The July result is the lowest this year and almost identical to the one from July 2023,” the report indicates.
Apartment rental market
The number of searches for apartments for rent on the Otodom website increased in July by 23 percent month-on-month and by 25 percent compared to the same period last year. The most popular apartments are still 2-room apartments with an area of at least 40 square meters.
According to data presented by Otodom, 17.3 thousand ads were added to the website in July, which is 17 percent more than in the previous month, and almost 5.8 thousand were reactivated – 16.9 percent more month-on-month.
“Compared to the situation in June, the offer shrank the most in Olsztyn (-20%), Kraków (-17%) and Szczecin (-13%). In Poznań, those looking for rental premises also have a smaller choice (-9% compared to June). In terms of absolute values, Warsaw (387 apartments less) and Wrocław (155 apartments less) are worth noting. This is not surprising, considering students returning from their holidays,” it was noted.
As the authors pointed out, the increase in the offer in seaside towns results from a smooth transition from short-term holiday rentals to long-term rentals. In Sopot, the offer increased by 63 percent. Increases were also recorded in Gdańsk (+14 percent) and Gdynia (+6 percent). The number of available apartments also increased in Kielce (+9 percent) and Bydgoszcz (+2 percent).
Apartment rental prices
As stated in the report, the average rental price increased by PLN 48 compared to June – from PLN 3,500 to PLN 3,548. The largest increases were recorded in Warsaw and Gdańsk, where the increase was 3 percent, PLN 170 and PLN 90, respectively. In Kraków, prices increased by 2 percent, and in Poznań and Wrocław by 1-1.5 percent. In Katowice and Łódź, an increase of 0.4-0.6 percent was recorded.
“A change in the structure of the available offer is visible. In July, in Krakow, Poznan and Wroclaw, the percentage of apartments available at a price of PLN 3-4 thousand increased noticeably, which is at the expense of cheaper ones, up to PLN 2.5 thousand. In the Tri-City, on the other hand, the increase in average rental prices is due to the greater number of advertisements and higher rates for apartments with an area of 40-60 square meters and larger,” they informed.
According to Otodom data, it was cheaper to rent a flat than a year ago in Wrocław, where prices dropped by 2 percent, as well as in Gdańsk and Łódź, where the reduction reached 4-5 percent.
The most expensive apartments are in the capital. At the end of July, an average rental apartment in Warsaw cost 5,100 PLN. In turn, over 3,000 PLN per month must be paid in Krakow, Wroclaw and Gdansk. In Poznan, Katowice and Lodz, average offer rates reach 2,100-2,500 PLN.
– The good news for tenants is that prices have remained stable for several months (the fluctuations in July and August are related to intensified searches by students), and the properties purchased in previous years for investment purposes that are being put into use are increasing the supply of apartments for rent. How long this situation will last depends, among other things, on the date of introduction of the next government subsidy program, which may lead to a sudden increase in demand for real estate in a given segment – indicated Otodom expert Katarzyna Kuniewicz.
As she added, if prices on the sales market rise, some people planning to buy will be forced to stay in rent for economic reasons. This, with a limited inflow of new apartments, may again lead to supply shortages in the future. – This is just one of the hypotheses, everything depends on the shape of the announced program. At the moment, the inflow of new apartments to the market has a positive impact on this market segment – Kuniewicz summed up.
Otodom is a real estate service in Poland that allows you to browse and post ads for sale and rental of real estate: apartments, houses, development investments or offices. Otodom Analytics is a set of data and information about the housing market in Poland and expert commentary.
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