17.3 C
London
Thursday, May 30, 2024

Renting an apartment – prices and rental rates in the largest Polish cities

Must read

- Advertisement -


We are dealing with a carousel of ups and downs when it comes to rental rates. Compared to the level a year ago, rent is more expensive in all 16 cities surveyed, and the average increase is 24 percent, according to a report by Expander and rentier.io.

“The largest increase was recorded in Rzeszów (40%), Kraków (36%), Warsaw (31%) and Wrocław (31%). After these increases, however, it is still the most expensive in Warsaw, where the average cost is PLN 75 per Wrocław and Kraków are also at the forefront in terms of rental costs, where the price per square meter is PLN 64 and PLN 62, respectively.

It was added that “in cities such as Częstochowa and Sosnowiec, apartment rental prices are relatively low compared to other cities”, although “during the last year, the cost of renting apartments in these cities increased by 14% and 24% respectively”.

Such large increases in rental costs were, of course, related to the sudden emergence of huge demand from refugees fleeing war in Ukraine” – explained.

- Advertisement -

Rental rates in the largest cities

“Prices in offers added in February in the 16 cities we analyzed fell on average by 0.39 percent compared to January. Let us remind you that in January they increased by 1.32 percent. In the previous months, they also increased and decreased alternately” – indicated in the report.

It was also stated that “compared to September 2022, when the period of increases ended, greater changes occurred in Rzeszów (+10%), Sosnowiec (+9%) and Gdynia (-9%)”.

Rental rates in February 2023expander.pl

Number of rental offers – latest data

“In recent months, the rental market has seen a gradual increase in the number of offers. Let us remind you that the war in Ukraine caused a huge influx of immigrants who had to live somewhere. As a result, in the spring of 2022, the number of rental advertisements decreased by more than 40 percent.

It was explained that “the return of the number of advertisements to the pre-war level signals that demand has finally been met and supply is beginning to exceed demand”, which does not mean that “there are no people on the market looking for an apartment for rent”, but “on the contrary, such there’s no shortage of people.”

“However, now they are no longer desperate refugees, ready to rent anything at almost any price. Currently, apartments for rent are looking for people who want to change their apartment for a better one, in a more favorable location, for a better price” – it was written.

Return on investment in an apartment

It was pointed out that “the return on investment in an apartment for rent increased almost throughout 2022” and “the reason for this was the increase in rental rates, and then the decrease in housing prices”.

“In February, this trend was stopped. A slight decrease in rental rates combined with a slight rebound in the offer prices of flats meant that the profitability of investments in a flat for rent slightly deteriorated. Currently, the average net profitability is 5.49 percent, which is the equivalent of a bank deposit with an interest rate of 6.78 percent. A month ago it was 5.61 percent (equivalent to 6.93 percent)” – the report states.

Profitability when buying an apartment without a loanexpander.pl

It was explained that “the calculations concern the purchase of a 50 m2 apartment without a loan, assuming that it is inhabited for 12 months a year” and “all costs are taken into account, i.e. broker’s commission (3 percent), PCC (2 percent) assuming that we buy from the secondary market, notarial fees and extracts, refreshment after purchase, furniture, cyclical expenses for refreshment and minor repairs, real estate insurance and lump sum tax (8.5%).

Exchange of the lease for your own apartment

“In recent months, many people have not been able to move from a rented apartment to their own. Such a need usually arises when a couple plans to start a family. Unfortunately, high interest rates and regulations of the Polish Financial Supervision Authority (KNF) made obtaining a mortgage loan very difficult until recently. Fortunately, the KNF relaxed the provisions of Recommendation S and the available loan amount increased in some cases by over PLN 100,000.

It was also stated that “additionally, the Secure Credit 2% program is to be launched in July” and “people who will use it will probably be able to obtain a loan amount about 30% higher than at present.”

“The combination of these two factors will make it easy for people who meet the conditions of the program (e.g. never had a flat, age up to 45) and who have a stable income to get a loan. Additionally, thanks to the subsidies, the installments of such a loan will be quite For example, with a loan of PLN 300,000 for 30 years, the installment of a regular loan is about PLN 2,307, and a loan with a subsidy of PLN 1,546.

Main photo source: Shutterstock



Source link

More articles

- Advertisement -

Latest article