Where Are Rents Falling in Poland?

After two years of relentless rent increases, Poland's rental market in early 2025 is showing signs of a turnaround. In certain cities, rents have stopped rising—or have even begun to fall. Tenants are regaining some negotiating power, while landlords are adjusting to a changing market landscape.

1. From Surge to Slowdown

The rental price boom of 2022–2023 was driven by:

• A massive influx of refugees from Ukraine
• Post-pandemic return to city living
• Soaring housing prices that pushed people into the rental market
• Limited supply of rental units, especially in major cities

But in Q1 2025, the tide has shifted in select markets.

2. Cities Where Rents Are Dropping

Based on data from rental platforms the following cities are seeing year-over-year rental declines:

• Łódź: Down 4.2%
• Katowice: Down 3.7%
• Lublin: Down 2.9%
• Bydgoszcz: Down 2.5%

In contrast, cities like Warsaw, Kraków, and Wrocław still show moderate increases but at a significantly slower pace—around 2–3% annually, compared to 12–18% in previous years.

3. Why Are Some Cities Cooling?

Several factors contribute to the reversal:

• Increased supply: Developers and private landlords flooded the market in 2023–2024.
• Tenant saturation: The post-Ukraine wave has normalized.
• Stagnant wages: Many tenants have hit their affordability limits.
• Smaller city appeal fading: Secondary cities boomed during the crisis but now face weaker demand.

4. Tenant Sentiment Is Changing

Tenant behavior is shifting too:

• More renters are negotiating lower prices or extras like free parking or no deposit.
• Rental durations are shortening; tenants are more mobile again.
• Many are considering moving outside of city centers to save money.

Reports that rental listing views have dropped by 17% in Q1 2025 compared to a year earlier.

5. Landlord Strategies in a Softer Market

Landlords are adjusting:

• Offering flexible lease terms and free utilities as incentives
• Renovating properties to compete on quality, not just price
• Accepting slightly lower rents to avoid vacancies

While still profitable, the rental market is no longer a guaranteed cash cow.

6. Suburban and Peripheral Markets Growing

While inner-city rents flatten, demand is shifting to suburbs and smaller towns near large cities.

Examples:

• Piaseczno and Pruszków (near Warsaw)
• Skawina (outside Kraków)
• Zabrze (adjacent to Katowice)

These areas offer better value, lower rents, and good transport links to major urban centers.

7. Impact of Mortgage Programs

Government mortgage support programs (e.g., “Mieszkanie na Start”) are pulling some people out of the rental market and into ownership—especially young families and professionals. This reduces competition for rentals, particularly in mid-sized cities.

8. What to Expect in 2025?

Analysts forecast:

• Further softening in cities like Lublin, Kielce, and Białystok
• Stable rents in top-tier markets like Warsaw and Kraków
• Slight increases in coastal cities due to seasonal demand

The tenant-friendly phase is likely to continue through mid-2025, though high inflation and construction costs could reverse the trend in 2026.

9. Expert Insights

“Rents aren’t collapsing—they’re rebalancing. The market is finally catching its breath.”
– Tomasz Kaczmarek, Economist, Nieruchomości Polska

“We expect rent discounts to stay modest but widespread. Landlords are realizing the boom is over.”
– Anna Maj, Senior Analyst, JLL Poland

10. Conclusion

In 2025, Poland’s rental market is transitioning. The sharp upward spiral is ending in many areas, and a new phase of stability and tenant leverage is taking shape.

For renters, it’s a welcome change. For landlords, it means a more competitive game—but not necessarily a losing one. With the right strategy, both sides can find value in this evolving market.