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Yes, the analysis of Warsaw's property market is included in our pack
Warsaw's rental market offers diverse opportunities for property investors and renters alike.
As of June 2025, average rents range from PLN 2,500 for studios to PLN 4,300 for two-bedroom apartments, with significant variations across districts like Śródmieście and Mokotów. Understanding these rental patterns is crucial for making informed investment decisions in Poland's capital city.
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Warsaw rental market shows studios averaging PLN 2,500-3,000 monthly while two-bedroom apartments reach PLN 3,500-4,300, with central districts commanding premium rates.
Rental yields range from 5.22% for studios to 8.89% for three-bedroom properties, making larger units more attractive for investors seeking higher returns.
| Property Type | Average Monthly Rent (PLN) | Rent per m² (PLN) | Gross Rental Yield |
|---|---|---|---|
| Studio (25-30m²) | 2,500-3,000 | 100-120 | 5.22% |
| 1-Bedroom (35-45m²) | 2,900-3,500 | 80-110 | 5.67% |
| 2-Bedroom (50-65m²) | 3,500-4,300 | 70-130 | 6.97% |
| 3-Bedroom (70-85m²) | 4,500-6,000 | 65-100 | 8.89% |
| House (suburban) | Variable | 70-90 | 6-8% |
What are the current average rents for different property types in Warsaw?
Warsaw rental prices vary significantly based on property size and location within the city.
Studios typically rent for PLN 2,500 to PLN 3,000 per month, which translates to approximately €570 to €690. These compact units usually range from 25 to 30 square meters and are particularly popular among young professionals and students.
One-bedroom apartments command PLN 2,900 to PLN 3,500 monthly, or roughly €660 to €800. These properties generally span 35 to 45 square meters and represent the most common rental choice for single professionals and couples.
Two-bedroom apartments range from PLN 3,500 to PLN 4,300 per month, equivalent to €800 to €980. With typical sizes between 50 and 65 square meters, these units attract small families and professionals seeking more space.
Houses in suburban areas show more variable pricing, with per-square-meter rates averaging PLN 70-90, though total monthly costs depend heavily on property size and specific location.
How do rental prices differ across Warsaw's neighborhoods and districts?
Central Warsaw districts command the highest rental premiums due to proximity to business centers and amenities.
| District | Studio Rent per m² (PLN) | 1-Bedroom Rent per m² (PLN) | 2-Bedroom Rent per m² (PLN) |
|---|---|---|---|
| Śródmieście (City Center) | 100-120 | 110-130 | 120-150 |
| Mokotów | 90-110 | 100-120 | 110-140 |
| Wola | 85-105 | 95-115 | 105-135 |
| Praga Południe | 75-95 | 85-105 | 95-120 |
| Bielany | 70-90 | 80-100 | 90-110 |
| Ursynów | 70-85 | 75-95 | 85-105 |
What's the average cost per square meter for each property type in different areas?
Per-square-meter costs reveal the true value proposition across Warsaw's diverse districts.
Śródmieście leads with the highest rates, ranging from PLN 100-150 per square meter depending on property type. This premium reflects the district's central location, excellent transport connections, and proximity to major business centers.
Mokotów offers a balanced option with rates between PLN 90-140 per square meter. This district combines residential appeal with good accessibility, making it popular among families and young professionals.
Emerging districts like Praga Południe provide more affordable options at PLN 75-120 per square meter. These areas are experiencing gentrification and infrastructure improvements, potentially offering better long-term value appreciation.
Suburban districts such as Bielany and Ursynów present the most economical choices, with rates typically below PLN 110 per square meter even for larger properties.
What are the total monthly costs landlords face when renting properties?
Property owners must account for various expenses beyond mortgage payments when calculating rental profitability.
Service charges represent the largest ongoing expense, typically ranging from PLN 17 to PLN 21 per square meter monthly. These fees cover building maintenance, common area utilities, security, and property management services.
For a 40-square-meter apartment in Śródmieście, landlords face total monthly costs of PLN 800 to PLN 1,200 for utilities and service charges, in addition to the PLN 4,000-4,800 rental income. In more affordable districts like Bielany, these costs drop to PLN 700-900 monthly.
Property insurance typically costs PLN 500 to PLN 1,000 annually, depending on property value and coverage level. This expense provides essential protection against damage, theft, and liability claims.
Property management services, if used, generally charge 8-12% of gross rental income. Professional management can justify this cost through reduced vacancy periods and better tenant screening.
What taxes and legal obligations do Warsaw property owners face?
Polish rental property taxation follows a straightforward structure with clear obligations for property owners.
Income tax on rental earnings applies at two rates: 8.5% for gross annual rental income up to PLN 100,000, and 12.5% for income exceeding this threshold. This progressive structure benefits smaller-scale investors while ensuring appropriate taxation on larger portfolios.
Property tax varies by municipality but typically ranges from 0.1% to 1% of the property's assessed value annually. Warsaw's rates generally fall within the higher end of this range due to the city's premium real estate values.
Landlords must register their rental income with tax authorities and file annual returns. Monthly advance payments may be required for higher-income properties. Professional tax consultation is advisable for properties generating significant rental income.
Legal obligations include providing proper rental contracts, maintaining habitable conditions, and respecting tenant rights under Polish tenancy law. Property owners must also ensure compliance with local building codes and safety regulations.
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How do current mortgage rates affect rental property profitability?
As of June 2025, Warsaw mortgage rates significantly impact investment returns for leveraged property purchases.
Current fixed mortgage rates stand at 7.28% for five-year terms, with an annual percentage rate (APR) of 8.88%. These rates reflect Poland's monetary policy response to inflation and economic conditions.
Typical down payment requirements reach 30% of property value for investment properties. This means investors need substantial upfront capital, with a PLN 500,000 apartment requiring PLN 150,000 down payment plus transaction costs.
Leveraged investments with 50-80% loan-to-value ratios can still generate 4-7% return on equity after mortgage costs. However, investors must carefully calculate cash flow to ensure rental income covers mortgage payments, taxes, and operating expenses.
Current market conditions favor cash purchases over leveraged investments for maximum returns. Investors with financing should focus on higher-yield properties or consider waiting for potential rate decreases.
What rental yields can investors expect across different property types and areas?
| Property Type | Average Gross Yield | Best District | District Yield |
|---|---|---|---|
| Studio | 5.22% | Praga Południe | 5.09% |
| 1-Bedroom | 5.67% | Wola | 5.33% |
| 2-Bedroom | 6.97% | Śródmieście | 6.00% |
| 3-Bedroom | 8.89% | Mokotów | 6.74% |
| Houses | 6-8% | Suburban areas | 7-8% |
Three-bedroom apartments deliver the highest gross yields at 8.89%, making them attractive for investors seeking maximum returns. These properties benefit from strong demand from families and professionals requiring additional space.
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How have Warsaw rents and yields evolved over recent years?
Warsaw's rental market has experienced significant volatility over the past five years, with distinct phases of growth and adjustment.
The five-year period from 2019 to 2024 saw cumulative rent increases of 47%, driven by strong economic growth, increasing wages, and limited housing supply. This substantial growth outpaced inflation and made Warsaw one of Europe's fastest-growing rental markets.
However, 2025 has brought a correction, with rents declining approximately 10% in the first half of the year. This adjustment reflects increased housing supply from new developments and economic uncertainty affecting tenant demand.
Rental yields have actually improved due to this rent adjustment, rising from 6.03% in 2024 to 6.82% in 2025. Property purchase prices have remained relatively stable while rents have decreased, creating better entry opportunities for new investors.
The market shows signs of stabilization as we reach mid-2025, with most analysts expecting rent growth to resume at more sustainable levels in the coming years.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Poland versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What does the rental market forecast look like for Warsaw?
Warsaw's rental market outlook shows cautious optimism with steady growth expected across different time horizons.
For the next 12 months, analysts predict rent stabilization with modest growth of 1-2% as new supply absorption continues. The market is finding equilibrium between increased housing stock and sustained demand from economic growth.
The five-year forecast anticipates steady annual rent increases of 3-4%, supported by Warsaw's role as Poland's economic center and continued corporate expansion. Infrastructure projects including the Central Communication Port and metro extensions will likely support demand in specific districts.
Over the next decade, Warsaw rental market growth should align with Poland's economic development and wage increases. The city's position as a regional business hub and growing tech sector presence suggest continued rental demand strength.
Demographic trends, including urbanization and changing lifestyle preferences, will likely maintain pressure on rental housing demand throughout the forecast period.
How do short-term rentals compare to long-term leases in profitability?
Short-term and long-term rental strategies offer distinct risk-return profiles for Warsaw property investors.
Airbnb properties in Warsaw generate median monthly income of PLN 4,540 compared to PLN 3,500 for traditional long-term rentals. This 30% premium comes with significantly higher management requirements and occupancy risk.
Occupancy rates for short-term rentals average 25-30% citywide, meaning properties remain vacant 70-75% of the time. Long-term rentals typically maintain 95%+ occupancy with stable, predictable cash flow.
Short-term rentals face additional costs including frequent cleaning, utilities, furnishing, and platform fees. Marketing and guest management require substantial time investment or professional management services.
Long-term leases provide stable income with lower operational complexity. Tenant turnover typically occurs annually or less frequently, reducing vacancy periods and administrative burden.
Market conditions in 2025 favor short-term rentals in central districts with high tourist and business traveler demand, while residential areas perform better with traditional leasing strategies.
Who are the primary renter demographics in Warsaw and what do they seek?
Warsaw's rental market serves diverse tenant groups with specific preferences and requirements.
International professionals and digital nomads represent a growing segment, typically preferring studios or one-bedroom apartments in Śródmieście. These tenants prioritize proximity to coworking spaces, restaurants, and cultural amenities, often accepting higher rents for location convenience.
University students form a significant demographic, usually seeking shared two-bedroom apartments in districts like Mokotów or Praga. Cost sensitivity drives their decisions, with proximity to universities and public transport being crucial factors.
Young Polish professionals typically rent one or two-bedroom apartments in well-connected districts. This group values modern amenities, reliable internet, and reasonable commuting times to business centers.
Expatriate families working for international companies often rent three-bedroom apartments or houses in residential areas like Ursynów or Wilanów. They prioritize school proximity, green spaces, and family-friendly neighborhood characteristics.
Corporate housing demand remains strong, with companies seeking furnished apartments for relocated employees. This segment pays premium rates for quality properties with flexible lease terms.
What are current vacancy rates and how can property owners minimize them?
Warsaw's rental market currently maintains relatively low vacancy rates below 5%, though some central districts show increasing availability due to new supply.
Prime central locations including Śródmieście and parts of Mokotów experience the lowest vacancy rates, typically under 3%. Strong demand from professionals and international tenants supports quick absorption of available properties.
Emerging districts and newer developments show higher vacancy rates as the market absorbs increased supply. Properties in these areas may remain vacant 4-8% of the time while establishing tenant bases.
Property owners can minimize vacancy through competitive pricing strategies. Regular market analysis ensures rents remain attractive compared to similar properties in the same district.
Targeting specific demographics improves tenant attraction. Properties marketed toward digital nomads, students, or corporate clients should emphasize relevant amenities and services.
Professional property management reduces vacancy periods through better tenant screening, maintenance responsiveness, and market positioning. Quality management justifies its cost through improved occupancy rates.
Flexible lease terms and responsive communication help retain quality tenants. Properties offering furnished options or utility inclusion often achieve faster lettings and longer tenant retention.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Warsaw's rental market offers compelling opportunities for informed investors willing to understand local dynamics and tenant preferences.
Success requires careful analysis of district characteristics, property types, and target demographics to optimize rental yields and minimize vacancy periods in Poland's dynamic capital city market.
It's something we develop in our Poland property pack.
Sources
- Koronapay - Apartment Costs in Poland
- RentBerry - Warsaw Studio Apartments
- Global Property Guide - Poland Rental Yields
- Knight Frank - Operating Costs in Poland
- Consul Law Firm - Property Owner Regulations
- Bank Millennium - Mortgage Loans
- OkeAsk - Rental Property in Warsaw
- Best Yield Finder - Warsaw Properties
- Property Forum - Poland Rental Growth
- InvestRopa - Poland Real Estate Forecasts