APARTMENT RENTAL PRICES AFTER A YEAR OF THE PANDEMIC

The past year has taken us all by surprise, and there's virtually no aspect of life that hasn't been affected by COVID-19. The situation has also impacted the real estate market, including apartment rentals. What does the reality look like in Poland's largest cities a year after the pandemic?

Increased supply of apartments for rent at the beginning of 2021

In February of this year, the supply of rental apartments was nearly 13% higher than last year. The pandemic undoubtedly contributed to the increased number of rental properties available in our country. Students shifting to remote learning left many large cities, and those who lost their jobs, those who could work remotely, and foreigners also withdrew from renting.

The result of increased supply and decreased demand in the real estate market was a decline in prices. Landlords, forced to compete for tenants, often exploited price competition. As a result, rental rates fell by approximately 5% across Poland at the beginning of this year. Nevertheless, this isn't as drastic a change as some had anticipated.

Apartment rental prices in the largest cities in Poland in 2020 and 2021

Experts from the Gratka.pl portal presented the exact price levels in 16 Polish cities in their report prepared for Business Insider Polska. How does the current market situation compare to last year?

For years, Warsaw has remained the most expensive city in Poland in the real estate sector. Renting a studio apartment in the capital cost an average of PLN 2,050 in April 2020, compared to PLN 1,900 in February of this year. Similarly, the prices for two rooms were PLN 2,800 and PLN 2,400, and for three rooms, PLN 3,500 and PLN 3,300. The report shows that the most expensive cities in Poland, right after Warsaw, were Wrocław, Gdańsk, and Kraków at the beginning of the year. Meanwhile, the cheapest apartments for rent could be found in Kielce, Białystok, Bydgoszcz, and Olsztyn.

In terms of space, Poles are currently most likely to rent properties between 35 and 50 square meters, closely followed by studio apartments.² The number of people seeking the largest units is increasing compared to last year, so rental prices for these apartments remain stable.

Rent prices have fallen while apartment purchase prices continue to rise

While rental prices fell at the beginning of the year, property prices on both the primary and secondary markets are rising. New apartments were priced up to 3.5% higher in January than in December 2020.

Other factors that influence property rental prices

The pandemic has significantly impacted rental prices over the past year. However, it's worth remembering that market rates depend on a much wider range of factors. The price of an apartment's rental is influenced by the city, its area, and location, but also by the standard of finishing, the floor on which it is located, the number of rooms, and even the prices of neighboring properties.

More information about renting an apartment:

E: Information

In: Vilea Property Boutique

sources:
businessinsider.com.pl
bankier.pl

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