2022 was a great rental market in Poland! What awaits landlords in the new year?
2022 was definitely a great rental year in Poland! Never before, during our over 10 years of operation, have we seen such demand and such an increase in rental prices (up to 40% year-on-year) in such a short time! The rent increases covered all the apartments we manage. Our team successfully negotiated higher rates not only for new contracts, but also with existing tenants.
On the other hand, the sales market recorded a significant slowdown throughout the year, resulting from decreasing affordability of potential buyers. Rising interest rates and high inflation are not conducive to purchases on the real estate market.
Despite the difficult sales, all the properties we had for sale were sold last year. This was probably the last good moment for such a step, because rising inflation and high mortgage interest rates are not great signs for the future. Prices remained stable throughout the year, but further deterioration of the economic situation may result in their correction or even decline.
The end of the year is also a time when we think about what awaits us in the new year. We are already slowly observing a slightly lower demand for apartments for rent and rental price growth has also slowed down somewhat.
The continued development of the rental and sales markets will depend on the political and economic situation. Political, because of the war in Ukraine, which caused the influx of refugees and the boom on the rental market, may well reverse this trend. Further inflows will keep demand high and prices will continue to rise. The end of the war will, in turn, mean that some tenants will return home.
On the other hand, the economic situation, especially rising inflation, may result in a further increase in interest rates. This, in turn, will have a negative impact on the sales market and may force a correction or even a significant price drop.
If you are faced with the dilemma of selling or renting, we suggest holding on with sale and rent. If you want to do it professionally and are looking for a company that will take over all the landlord’s obligations from you, contact us to see how Sim Property can help you.