Polish housing market: Renting proves cheaper than mortgages in major cities

A recent analysis by the Morizon-Gratka Group indicates that in most major Polish cities, renting a studio apartment is more cost-effective than paying a mortgage on a similar property. In Warsaw, the average monthly rent for a studio was 2,550 PLN, which is 450 PLN less than the estimated mortgage installment for a 25-year loan with a 20% down payment and 6.1% APR. In Wrocław, renting is approximately 400 PLN cheaper per month than mortgage payments.

Beyond direct costs, renting offers lower entry barriers, as it does not require a down payment, bank procedures, or immediate investment in renovations and furnishings. However, renting does not allow the tenant to build equity.

In Katowice, the Katowice Social Housing Association (KTBS) is offering specific rental units in the Witosa estate, including two two-room apartments and one studio. These social housing options provide a regulated rental rate alternative to the private market.