The increase in long-term rental costs is 1 of the most noticeable changes in the real property marketplace in 2024. In fresh months, housing rental prices have increased in many cities in Poland, which is becoming a major challenge for tenants. Let's look at the causes of this growth, what changes are most noticeable and what this means for future tenants.
Why Has Rental Costs Increased?
Several key factors have led to an increase in long-term rental costs:
- Increase in Real property Prices: Real property acquisition prices are rising, resulting in higher rental costs. Homeowners who have invested in real property frequently carry an increase in acquisition costs to rent.
- Inflation and Increase in Maintenance Costs: The overall increase in prices of goods and services, including the costs of media and the maintenance of real estate, affects higher fees for tenants. Increases in energy, water and heating prices affect rental costs.
- Limited Number of Real Estate: In many cities in Poland we see housing shortages. A limited offer combined with expanding request leads to higher prices.
- Amendments to the Rules: fresh real property rental regulations can affect costs, specified as mandatory method inspections or increased building safety requirements.
What are Current Trends at Rental Costs?
In 2024, the increase in long-term rental costs is clearly seen in large cities specified as Warsaw, Kraków, Wrocław and Gdańsk. For example:
- Warsaw: The average cost of renting an flat of 50 m2 increased to about PLN 3 500 per month, which means an increase of about 12% compared to the erstwhile year.
- Kraków: In Krakow, the rent of an flat with a akin area is on average PLN 2,800 per month, which represents an increase of 10% in the last 12 months.
- Wrocław: The average cost of renting an flat of 50 m2 is about PLN 2 600 per month, with an yearly increase of 8%.
How can you advise yourself with an increase in costs?
If you are a tenant or are planning to rent an apartment, here are any applicable tips:
- Consider Rental in Smaller Towns: Renting apartments in smaller cities or on the outskirts of large agglomerations can be more affordable.
- Negotiate Terms and Conditions: It is worth trying to negociate rent rates or another rental terms with the owner, especially if the rental takes place for a longer period.
- Pay Attention to Additional Costs: Make certain you are aware of all additional costs associated with the rental, specified as media charges, maintenance or parking.
- Check Subvention and Aid Capabilities: In any cases local aid schemes for tenants are available to aid reduce costs.
Future Forecasts
According to real property experts, the increase in rental costs can persist in the coming months, especially in large cities. The increase in property prices and inflation can proceed to affect the amount of fees. It is worth monitoring the marketplace situation and adapting its plans depending on current trends.
- Dr. Jan Kowalski, real property analyst: “Low leases show a further increase in costs, which may affect rental decisions and real property investments.”
The increase in long-term rental costs in 2024 is the consequence of respective factors, specified as the increase in property prices, inflation and a limited offer of housing. This may be a challenge for many tenants, but strategies are available to aid manage rising costs. marketplace awareness and skillful planning can aid you find the best solutions.
Read more:
Long-term rental costs increase: What should you know in 2024?
