Residential rental rates rose by an average of 1.5% m/m in July and increased by 8.5% y/y, according to the “Rental Market Report. July 2023” Otodom. The stock of rental units on offer on the last day of July was almost 22,000, 4% less than on the last day of June.
The rental market in July 2023 is heating up, approaching the peak season coinciding with the start of the academic year. Although there were more listings active during the month (44,400) than in the previous month, the offer status on the last day of July 2023 was almost 22,000, 4% less than on the last day of June. During the month, 16.1 thousand ads were added (+2.2% m/m), 5.3 thousand were reactivated (+7.1% m/m), and almost 22.5 thousand ads were closed (+6.5% m/m) ads, it reported.
The turnover, i.e. the number of new versus June listings but closed before the end of the month, was also higher (8.1k versus 7k).
July, along with a recovery in the rental market, brought an increase in average rental rates. In all provincial cities, a flat was on offer for an average of PLN 3470, 1.5% more than in June and 8.5% more than a year ago. In 13 voivodeship cities, an increase in the average offer price is visible on a monthly basis, with a slight decrease recorded in Katowice, Opole and Rzeszów. Average rents are rising most strongly in the Tricity (+3.5% m/m), Lublin and Olsztyn (+2.5% m/m). Minimal increases apply to Szczecin and Kielce, according to the report.
As noted by Karolina Klimaszewska of Otodom, the temperature on the rental market is rising, which is manifested not only by rising searches on a monthly basis (18% m/m) in the category of flats for rent, but also by an increase in the number of displays of the offers themselves (+13.7% m/m) and, above all, by a fifth higher number of responses to these offers.
“This year, the expected peak season of the rental market will be quieter than last year (due to the dampened effect of the war in Ukraine and the reduced demand for rental housing reported by the Refugees), but still hotter than in 2021. An aspect that may affect the rental market in Poland is the number of granted loans accepted under the 2% Safe Credit programme and, consequently, the processing time of applications and the pace at which borrowers move into their own M,” Klimaszewska pointed out, quoted in the report.
She stressed that the latest data from the Credit Information Bureau (BIK) from July 2023 shows that interest in the programme is high. There was a 97.5 per cent increase in the number of loan applicants on a monthly basis, and for the current year 2023, the government has not announced limits on the number of loans under the programme, meaning that around 30,000-40,000 loans could be granted under the 2% Safe Credit programme.
Source: Otodom and ISBnews
