The rental market is losing momentum. Experts pay attention to one city

May brought a clear revival in the offer on the rental market, but demand again did not keep up with the changes. Today, apartment owners do not have strong arguments to raise rents – according to an analysis by GetHome.pl.

Although the number of new advertisements increased, tenant activity was again weaker than a year earlier and than in spring. As the data show, the market is increasingly moving towards supply dominance.

More offers, less traffic

The Adradar search engine shows that in May the number of apartments rented or withdrawn from the market was approximately 43,000. This is a decrease of approximately 2 percent. compared to April and by 4 percent year to year.

At the same time, approximately 46,000 products hit the market. new offers, which resulted in a further increase in the total availability of premises – to approximately 86,000. apartments, i.e. by 13 percent more than a year earlier.

– May was another month this year in which the new supply of apartments exceeded the demand – notes Marek Wielgo, an expert at GetHome.pl.

Gdańsk goes its own way

Gdańsk stands out in particular among the country, where for several months the situation has been opposite to that in most metropolises. In May, the number of available apartments dropped to approximately 3,300. premises, i.e. by 3%. month to month.

Experts indicate that this is the result of seasonality and strong competition from short-term rentals.

– However, this market has been governed by different rules for years. Unlike Warsaw or Krakow, Gdańsk is strongly dependent on the tourist season. With the arrival of warmer months, some apartments are withdrawn from the long-term rental market and are offered as short-term rentals for tourists. This is a rational decision of apartment owners. In high season conditions – especially in July and August – short-term rental can be clearly more profitable than classic rental, with a very high occupancy rate in the summer season – says Marek Wielgo.

Adradar data confirms that in Gdańsk the offer systematically decreases in spring and summer, only to rebound in autumn, when students return to the market.

– In Gdańsk, tourists “win” in the summer, and students “win” in the fall. This is an example of a market where short-term rentals actually compete with traditional rentals for the same apartments – emphasizes the GetHome.pl expert.

Stable rents despite greater supply

In most large cities, the growing number of apartments for rent has not resulted in an increase in rents. On the contrary, rents remain stable or fall slightly.

In Warsaw, the median remained at approximately 4.2 thousand. PLN (−7% y/y), in Krakow approx. 3 thousand PLN (0%), and in Wrocław it dropped to approximately PLN 2.7 thousand. PLN (−4%). Similar trends can be seen in Poznań and Łódź, where rates have also decreased slightly. The exception is Katowice, where rents are still higher than a year ago.

The market is on the tenants’ side

The growing number of available apartments means that owners increasingly have to compete for tenants rather than maximize the rate. According to experts, this trend may continue in the coming months.

An increase in tenant activity is expected only in the summer and before the beginning of the academic year, but the large supply of apartments may further stabilize prices.

Finally, experts point out one more problem – the real cost of rent.

– Different price presentation models make it difficult to compare offers. Tenants should always check the full cost of the lease and not rely solely on the entry price, summarizes Marek Wielgo.