Rental is back in the game, but with new rules

Looking at the costs associated with housing and energy carriers, an increase of 7.2 percent y/y was recorded at the end of Q3 (by 0.6 percent m/m), while in the household furnishings and housekeeping category by 3.8 percent (0.7 percent on a monthly basis). Overall, Q3 2021 in terms of housing expenses was more expensive by 6.8 percent and 3.5 percent respectively compared to the same period last year (up 1.3 percent compared to August 2021. At the same time, under the influence of inflation, decreasing supply, and increasing land prices, as well as the high cost of construction materials and workmanship, the prices of flats themselves are rising. 

In this context, the rental market is gaining ground as a safer alternative for those who may have limited borrowing capacity under circumstances of further interest rate rises, or those who have not yet saved for their own contribution or do not wish to buy a flat at this stage of their lives. In the rental segment, after a period of pandemic slowdown in demand, there has been a revival, which has translated into an increase in rents of around 4.8-5.7 percent (after last year's several percent reductions) depending on the size of the apartment.

"Demand in PRS is mainly shaped by younger generations, senior students, people representing specialist professions, foreigners, and parents renting flats for their studying children. By the end of September, over 70 percent of our tenants were under the age of 34, with those aged over 45 at the other end of the spectrum, accounting for around 10 percent of customers," Alicja Kościeszna, Sales and Marketing Director of Resi4Rent, said

(WBJ)