In July, apartment rental rates in voivodeship cities increased by 1.5 percent on average compared to June and by 8.5 percent year-on-year. The largest increase was recorded in the Tri-City as well as in Lublin and Olsztyn.
At the end of July, in the largest cities, such as Warsaw, Wrocław, Katowice and Łódź, the base of flats for rent decreased by 5% on average, and rental rates increased by 1.5%. mdm – results from the latest, July “Report on the rental market” Otodom.
In this way, they ensure a constant return on investment
As noted, the peak season on the rental market usually falls in the months preceding the start of the academic year. “Last year, already in July, there was a clearly increased activity on the part of potential tenants. In this case, an increase in searches was observed already in June” – it was emphasized. During this time, landlords added over 16,000 sqm. new ads and reactivated over 5,000, i.e. 7 percent. more than in June – indicated. Analysts said that the “rising temperature on the rental market” is also visible in the increase in the number of closed ads (+6.5% m/m) and in the higher rotation, i.e. the number of new offers compared to June, but closed before the end of July (8.1 thousand). The report shows that the decrease in the number of available offers of apartments for rent was most visible in the largest academic centers. In July, the base of premises for rent in Poznań decreased by 11 percent, in Wrocław and Warsaw by 5 percent, and in Łódź by 4 percent. The exception was the Tri-City, where the number of offers increased by 27 percent. “A significant increase in available rental offers in the Tri-City is related to the end of the tourist season” – explained Karolina Klimaszewska from Otodom, quoted in the report. She pointed out that during the holidays, owners of premises in coastal cities redirect their properties to short-term rental, and in July they start looking for new tenants for the next part of the year. “In this way, they ensure a constant return on investment in real estate throughout the year” – she stated.
Most often we are looking for two-room apartments
Nationwide, those interested in renting most often look for 2-room apartments with an area of at least 40 square meters. In July, an increase in the number of searches for 3-room apartments with an area of min. 50 square meters. “Such premises are sought by both students who decide to share an apartment with roommates, as well as families with children or a couple who need an additional office for work” – added Klimaszewska. Analysts emphasized that the revival on the rental market resulted in an increase in rental rates. “In July, in all voivodship cities, they increased by 1.5% on average compared to June and by 8.5% compared to last year” – it was pointed out. It added that the largest increase was recorded in the Tri-City (+3.5% m/m) and in Lublin and Olsztyn (+2.5% m/m). As noted, in Gdańsk, Gdynia and Sopot, apartments from short-term rental are back on offer, including those with an area of 40-60 sq m and 60-90 sq m. inflation is still high and entails an increase in prices, which also translates into the costs of housing maintenance and operation. Landlords, in order to maintain rental profitability, will probably continue to pass these costs on to tenants, Klimaszewska assessed.
Main photo source: Tomasz Mikulicz