- After the shock of war, high prices remained on the rental market, even though the level of offer in most of the largest cities exceeds the one recorded before the war, and the demand side is clearly weaker.
- The decrease in tenants' demand should be associated with the slowly rebuilding purchasing power on the transaction market. In this context, the program of subsidizing loan installments from the state budget is not conducive to the rental market. A certain weakening of demand is also caused by a worse situation on the labor market, which affects immigrants to a greater extent, who are an important part of the demand side of the market.
- A higher offer and weaker demand mean a greater tendency to reduce rental rates, which we have been observing since 4q22. An important factor preventing rents from falling is the high level of inflation.
- The boom on the rental market in 2022 was not reflected in the strong increase in the offer on the institutional rental market. The PRS sector will remain a supplementary form of satisfying housing needs.
Our survey shows that developers show little interest in renting, both in the context of current operations and plans.
The Pulse of Real Estate: The market has frozen on the higher price shelf (pkobp.pl)