Apartment rents in large cities already exceeded the symbolic limit in October 2021. “It is already more expensive than before the epidemic” – said Bartosz Turek, chief analyst of HRE Investments, in Tuesday’s analysis. Compared to the situation in December 2019, when rent was paid the most, the rates are an average of 2%. higher – according to HRE estimates.
Apartments for rent. In big cities, ads are disappearing
There are at least four reasons for such increases: the return of compatriots from abroad, the influx of immigrants (mainly from Ukraine, but also Belarus), and the return of students to universities and employees to offices. It was them that caused the advertisements of owners of apartments for rent to disappear.
Today, there are even half of them than last year. Along with this, rental rates went up again, and this significantly – experts point out.
From January to November 2021, rates increased by more than 10%. If this trend continues in the coming months, it will average rates can be as much as 15 percent. higher than last year.
Higher rental rates may also be due to the fact that many landlords took advantage of the epidemic to invest in rented premises. “In addition, cheaper apartments are quickly disappearing from the market, so the average drawn from offers without the cheapest offers (…) is higher” – HRE experts note.
Bartosz Turek forecasts that rental rates will increase.
This is especially possible if the government refrains from draconian forms of fighting the epidemic, such as closing universities, gyms, swimming pools, cinemas and restaurants, the analyst believes.
Rent in Poland. Immigration translates into higher demand
Turek also points out that there is unrest on the eastern border they favor immigration to Poland, and this directly translates into a higher demand for rent – immigrants, at least in the first years of their stay, usually use the rental market first.
According to HRE, the increase in rental rates will also result directly from increased inflation. Analysts note that As a rule, owners pass on to tenants the rising costs of property maintenance – heating, electricity and garbage collection fees.
On the other hand, those landlords who pay in installments can also pass on some of their growth to tenants. Over the past few months, the average zloty loan has already increased (or will become more expensive at any moment) by about 25 percent, “and the forecasts suggest that the increases may finally reach around 40 percent.” – HRE experts indicate.
See also: Money. It counts
The Polish Order, i.e. a lump sum instead of a tax on income
Experts predict that tenants will also be hit by higher taxation under the Polish Deal. It is about the need for landlords to pay a lump sum on rental income instead of income tax.
“This is a big change, because there are many owners of apartments for rent in Poland legally for years she did not pay taxes on income, taking advantage of the benefits of depreciation “ – notices the Turek. He reminds that today it is partially impossible, because the transitional provisions only allow the current form of settlement to be maintained in 2022 only to those who have so far made their settlements.
“The owners will not bear this additional cost entirely. They will at least partially want to burden the tenants with it, which should be particularly easy, if there will be enough people willing to lease in 2022” – he points out.