While in February it could have seemed that the rental market was quiet before the storm, in March we witnessed a regular thunderstorm in the form of a several percent increase in average asking prices.
The amounts entered in the rental announcements of both studios and large apartments went up – according to Bankier.pl data provided by the Otodom real estate website. The reason is the increase in demand, mainly from Ukrainian refugees, which obliterated the offer.
The number of advertisements for the rental of apartments has dropped the most in Wrocław. At the end of February, 1,432 offers were available in the capital of Lower Silesia, while at the end of March there were only 362 – by 75 percent. less on a monthly basis.
Decrease in the number of offers below 70%. During the month it was also recorded in Krakow. Nominally, the largest number of offers was left in Warsaw, where at the end of February 5,673 offers were available, and at the end of March only 2,258 offers (-60% m / m).
Demand has skyrocketed due to many refugees
Depending on the city, the offer of renting other areas was the most devastating. While in Wrocław the number of advertisements for the rental of apartments with an area of less than 40 sq m fell the most. (-83% m / m), in Warsaw and Kraków the largest reduction was recorded in the case of slightly larger apartments with an area of 40 to 60 sq m. (respectively -70% m / m and -75% m / m), and in Szczecin, the room for manoeuvre of those looking to rent large premises with an area of more than 80 sq m was the most restricted. (-64% m / m).
The growing demand is generated mainly by refugees from Ukraine entering the Polish rental market, but conquered by people who, due to rising interest rates and more expensive loans, have been pushed from the housing sale market to the rental market. The growing interest in renting, illustrated by the declining number of offers, was reflected in the growing average offer prices. Meanwhile, in January we were talking about a correction, and in February about an increase, but lower than a year earlier.
The growing demand is generated mainly by refugees from Ukraine entering the Polish rental market, but conquered by people who, due to rising interest rates and more expensive loans, have been pushed from the housing sale market to the rental market. The growing interest in renting, illustrated by the declining number of offers, was reflected in the growing average offer prices. Meanwhile, in January we were talking about a correction, and in February about an increase, but lower than a year earlier.
Landlords are having a golden year
In March, in the monthly relation, all areas of the advertisements increased in price – from studios to large apartments with an area of 60 to 90 sq m. In the case of the smallest ones with an area of less than 38 sq m. the strongest – by 11 percent. on a monthly basis – the average expectations of landlords of such space in Łódź increased. The most stable was the average offer price recorded in Szczecin, which in relation to February increased “only” by 2.7%. The increase took place after three consecutive months of cuts.
Increase of the average valuation on a monthly basis by 11%. in Łódź translated into a nearly 27% increase in annual terms. Over 20% The average valuation of studios for rent in Wrocław and Katowice also rose.
While in March 2022 we witnessed increases in offers by several percent, a year ago March brought a correction to the average expectations of landlords in most of the analysed cities.
Such significant increases in the average expectations of landlords in annual terms did not affect the larger flats. Taking this perspective into account, the most stable were the average asking prices entered in advertisements for the rental of apartments with an area of 60 to 90 sq m. Suffice it to say that in Kraków and Lublin their valuation decreased compared to March 2021. In Szczecin, the annual average bid rate increased by less than 2%, in Bydgoszcz by 3%, and in Warsaw by 5.4%. Wrocław is at the other extreme, with an almost 19% increase in the average expectations of landlords.
Compared to the apartment sales market, the influx of refugees had a much stronger impact on the Polish rental market. In the primary market, we saw a slowdown in the rates that rose in the previous months, and in the case of studio flats, even a correction. It was more difficult on the secondary market, although the average expectations of sellers of second-hand apartments grew much slower on a monthly basis than those of landlords.
Source: Bankier
