The real estate market is subject to natural fluctuations. What will 2025 look like?
1. More apartments for rent – a benefit for tenants
In 2025, the trend changed; already in January, the database of offers on OtoDom was significantly larger, and September brought a record increase in current rental offers, which may indicate a seasonal effect or a change in the strategy of apartment owners (e.g., abandoning short-term rentals in favor of long-term ones).
The increase in the number of available apartments means tenants have more choice, more negotiable offers, less pressure to make decisions, and the ability to more consciously choose locations and standards. This represents a real improvement in the situation for tenants after a period when finding housing was difficult and expensive (2022 and 2023) following the arrival of a large group of refugees from Ukraine, whose sudden demand for housing resulted in a shortage of available apartments on the market.
2. Increasing the competitiveness of the Private Rented Sector (PRS) segment
PRSs are companies and investment funds—state, private, or foreign—that build or purchase entire buildings for rental purposes. The increase in apartments being rented has significantly increased the supply on the market.
| Additional investments planned/under construction: | Another 6 facilities , which are to provide approximately 2,400 apartments |
| Krakow's place in Polish institutional leasing: | Krakow is the 3rd largest PRS market in Poland . |
| Growth of institutional resources in Krakow: | +530% over the last five years. |
3. Short-term rental – the impact of regulations
Proposals to create "Airbnb-free" zones are also impacting rental models in 2025. Some short-term rentals have returned to long-term rentals, which has contributed to an increase in market supply.
4. Offer prices and transaction prices
Although Otodom shows a slight upward trend in rental prices in 2025 (over 2%) compared to 2024, it should be assumed that these are asking prices, which usually differ from transaction prices. As the saying goes, "Krakow Market," these prices are subject to negotiation, a phenomenon that was evident in 2025.
The average asking price in Krakow in 2025 was approximately PLN 67/m², which translates to PLN 2,700–2,900 per month for a typical apartment. However, the variation between districts is significant:
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The most expensive locations, such as the Old Town and Kazimierz, reach an average of PLN 85/m².
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The cheapest districts, including Nowa Huta and Mistrzejowice, offer rates of around PLN 50/m² and more, depending on the age of the building and amenities.
5. Planned amendment to the Real Estate Management Act
The announced legislative changes will reinstate licensing requirements for estate and community managers. These changes may impact administrative rent costs in 2026.
6. Amendment to the Local Spatial Development Plan (MPZP)
Some Local Spatial Development Plans may limit service functions in multi-family buildings from 1 January 2026, which may result in a decrease in the number of apartments available for short-term rental, and some of them returning to the long-term rental market.
Forecast for 2026 and operational strategy
The rental market will stabilize in 2026 – it will not be subject to the same significant price increases or decreases as it was between 2020 and 2023. It will become more predictable and transparent, allowing for the adoption of a strategy that will allow for achieving long-term goals. Current projects for institutional rental buildings will continue the trend of increased housing supply in 2026. They will raise the standard of apartment finishes and develop new lease agreements, such as pet-friendly rentals and the first month's rent free of charge. Because PRS rents on an institutional basis, rather than on an occasional basis, this relieves tenants of the obligation to provide alternative accommodation (while maintaining the landlord's security). Fewer formalities and fewer restrictions for tenants will reinforce the growing popularity of institutional rentals, offering a lower barrier to entry. In the next article, " How Can Private Rentals Compete with the Institutional Sector ?", individual apartment owners have a number of advantages that allow them to compete effectively – if they recognize the advantages and understand the key differences.