Families looking for apartments are between the hammer and the anvil. Apartment prices have dropped slightly, but loans are very expensive. Rent is a smaller burden on the household budget, but rental rates have increased significantly and may increase even further. Experts advise you to decide quickly, because in August and September the best offers on the market may be swept away by students.
Analyses of second-hand apartment sales announcements show that the market has just entered a correction phase and there is a chance for a drop in prices. Unfortunately, due to expensive and less available loans, many Poles cannot afford to buy their own apartment. Hence the necessity to rent. The problem is that the increased demand for rent is pushing up rental rates.
– Rents at the moment are at much higher levels than a year ago. The rates have increased by an average of 15 percent up to 50 percent It depends on the size of the city, premises and location – says Marcin Drogomirecki, real estate expert from morizon.pl in an interview.
The latest quarterly, prepared on the basis of data from advertisements on the Otodom website, shows that the average rent for a flat in Poland in the second quarter was PLN 3,179 compared to PLN 2,770 recorded at the time of the Russian attack on Ukraine. Interestingly, the rates went up the most in the smallest towns, where refugees from Ukraine started looking for housing second.
The rates for smaller flat, i.e. those most commonly available on the market, go up the most. In the case of studios, the average per square metre is about PLN 73.5. The conversion rate in larger three-room apartments is just over PLN 60.
More detailed data from the largest Polish cities in May show that a new normality has come. A year ago, outside of Warsaw, 2,000 were enough. PLN to pay the rent for the apartment. Now in the most attractive places it is already 2.5-3 thousand PLN .
Why are rents rising so fast?
Experts explain large increases in rental rates with the age-old law of economy, i.e. demand and supply. On the one hand, we have expensive loans and an economic slowdown, which is reflected in the slowing down of new housing construction . The offer is therefore limited. On the other hand , we are seeing a strong increase in the demand for premises by Ukrainians and people who cannot afford to buy real estate.
– There are much fewer lease offers than last year. This is mainly due to the influx of refugees. In June and July, there was a slight increase in available flats, because some students vacated flats, but in August the fight for the most attractive price options, those from the lower shelf, will begin again – Marcin Drogomirecki points out.
Otodom statistics show that the largest number of rental offers in Poland was in mid-2020. This was due to the coronavirus lockdown. Since then, the number of advertisements has been decreasing, and at the moment there have been the least of them since at least 2018. At the same time, the owners are closing many more offers, which was not the case in previous years.
An important factor driving up prices is also the current monetary policy of the National Bank of Poland (NBP). Increase in interest rates from 0.1 to 6.5 percent. It not only influenced those looking for a flat (more and more people are thinking about renting instead of buying their own apartment), but also the owners of the premises.
– We have a large increase in loan instalments. Even by 80-100 percent. Some of the investment flats intended for rent were purchased on credit. The owners assumed that they would pay in instalments from the current receipts from tenants. So they are now forced to raise fees – comments Jarosław Sadowski, Expander’s expert in an interview.
This is the last moment for attractive rent offers
– It seemed that the holidays would be a period of calming down on the rental market, because the flats would be vacated by students, but the owners use the end of existing contracts to raise rates – adds Sadowski.
Marcin Drogomirecki also draws attention to the fact that apartment owners may prefer contracts for periods shorter than, for example, a year. In order to be able to possibly increase the rent. It is also worth reading the documents carefully, in which there may be gaps to pay raises during the term of the contract more and more often.
Real estate experts have no doubt that it will not be cheaper in the near future. Families looking for a rental apartment are advised to hurry. Procrastination with the thought of promotions can end up backfiring.
– There is no need to delay renting an apartment. Previously, the market was cleared by refugees, but recently some of these offers have appeared due to the departure of some students. There is a chance to catch the bargain – suggests Expander’s expert.
– In August, the cheapest offers will begin to disappear from the market thanks to students who will be looking for a place for the new academic year. In September, only the most expensive apartments will remain – warns Sadowski.
Source: BusinessInsider
