In 2020, 66% full-time students rented accommodation for a fee, with the largest number (36%) paying rent of PLN 500-750 per month. Since March 2020, the coronavirus pandemic has significantly changed the student real estate market. Experts believe that rent prices will decline in the 2020/21 academic year. The AMRON Center, in cooperation with the Warsaw Institute of Banking, has published the report "Students on the Real Estate Market 2020.".
For 11 years, the AMRON Center has published the AMRON-SARFiN Report, which analyzes changes in transaction prices in the housing market. We have been monitoring the rental market for five years, and since 2018, we are the only analytical center in Poland to analyze in detail data on student rentals, which constitute a significant portion of the overall rental housing market in Poland. Due to the changing conditions caused by the COVID-19 pandemic, this year's report should become required reading and serve as an essential guide when negotiating lease agreements for the 2020/2021 academic year. "It can only get cheaper!" said Dr. Jacek Furga, President of the Center for Banking Law and Information; AMRON Center.
66% of the surveyed students studying at 19 academic institutions in Poland rent their accommodation for a fee. The majority, 52% of all respondents, declared that they were renters of private properties, while 14% indicated accommodation in student dormitories. 27% of the surveyed students lived with family or friends and paid no rent, while 7% of the students owned their own property. Monthly rental fees paid by students varied and depended on many factors. Among the surveyed group, they ranged from PLN 270 for a room in a university dormitory to as much as PLN 2,500 for an entire apartment for exclusive use. Students included the total rent in their responses, adding average utility and administrative fees. 88% of the surveyed students declared that their monthly rental fee was less than or equal to PLN 1,000. The remaining 12% paid more than PLN 1,000 per month. Considering the PLN 250 range, most respondents (36%) indicated rents of PLN 500-750. 28% students paid PLN 250-500, while 24% students paid PLN 750-1000. The fewest, only 2%, rented for more than PLN 1500.
An interesting analysis of room rental prices based on the number of occupants is provided. A single apartment cost an average of 741 PLN per month, approximately 200 PLN more expensive than sharing a room. Among the survey participants, the price difference between a double room and a shared room with three or more students was small, amounting to just 37 PLN.
Of the nine available factors that have the greatest impact on choosing a rental property, the majority of surveyed students cited price as one of the most important. This response was given 1,364 times.
The closure of universities due to the COVID-19 pandemic has caused significant changes in the student rental market. Only 37% respondents declared that their housing situation had not changed following the government's restrictions. The remaining 63% students decided to move out or negotiate the rent. 27% respondents decided to terminate or suspend their lease and leave the city where they were studying. 15% students could expect a rent reduction in their current location, and another 15% moved to a cheaper place. 2% respondents paid the same rent despite relocating. In 2% cases, students moved out of the city where they were studying but still had to pay the full rent due to the validity of their lease.
The student rental market is very popular among both commercial investors and individuals. Thanks to our collaboration with the coordinators of the Modern Business Management program, we benefit from direct contacts with students at most academic institutions in Poland and receive first-hand, up-to-date and reliable information about student rental housing conditions. We will be closely monitoring developments in this market," adds President Furga.
The full report is available on the website www.amron.pl
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The "Students on the Real Estate Market 2020" report was prepared by the AMRON Center as part of the "Active Student" Project of the Warsaw Institute of Banking, in cooperation with the coordinators of the Modern Business Management Educational Program, implemented by the Center for Banking Law and Information Sp. z o.o. and with funding from the Ministry of Science and Higher Education.
The data and comments were prepared by a team of Real Estate Market Analysts at the AMRON Center: Agnieszka Bartoszewska and Ewelina Staruch, under the substantive supervision of the Director of the Real Estate Market Research and Services Department, Jerzy Ptaszyński.
The analysis is based on the results of a survey conducted among 2,810 full-time undergraduate and graduate students in 19 of Poland's largest academic cities. The report also uses data published by the Central Statistical Office (GUS), Eurostat, the National Information Processing Institute (OIPP), and Google Trends.
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The AMRON Center is a professional analytical and research center specializing in issues related to the real estate market, operating within the organizational structure of the Center for Banking Law and Information Ltd. at the Polish Bank Association. The AMRON Center was established to operate and develop the Real Estate Market Analysis and Monitoring System – the only nationwide database of real estate prices and values in Poland equipped with advanced reporting and analytical functionalities.
The system was created as a response to the banking sector's regulatory requirements related to credit risk management. In September 2004, it was initially made available exclusively to banks, and later to non-bank real estate market participants as well. The Center consistently pursues the goal of creating a comprehensive database on the real estate market, providing quick and direct access to reliable information essential to all market participants.
www.amron.pl
