Why do Poles prefer buying to renting flats?

Buy or rent a flat? We have looked at this question in several articles published on our blog so far. Today we write about what motivates Poles to choose to buy a place of their own more often. Why do Poles differ so much in their need for ownership from their Western neighbours?

Poland is among the top European countries when it comes to buying flats. As many as 83% of the population own their home. Compared with the Germans, only 50% of whom can boast of having bought a property, we are a nation that attaches enormous importance to owning things.

Pricing policy in the property world

Most clients of estate agencies are people who want to sell a flat. Renting out a flat certainly offers the prospect of long-term and decent earnings, yet it is precisely the money involved that deters would-be tenants.

Renting is most common among people taking their first steps in adult life. These are students, young married couples, and also people in more difficult financial circumstances (who cannot afford to spend a large sum of money in one go). Among students in particular, however, there is a trend of renting not whole flats, which are usually too expensive, but single rooms, most often shared with friends. For landlords who would rather let a whole flat to one person or a couple, such "dividing the premises into rooms" can be a burdensome task. More tenants mean more duties and supervision. Not everyone wants to spend their time on it.

Most Poles, however, want to buy a flat. Once they have become financially independent, they want to own something permanent. Where does this need come from? Above all from very high rents, which put us near the top of the European rankings. The average cost of renting a property of 38 m2 in a large city is about 1,600 PLN. For 60-90 m2 we will pay over 3,000 PLN. It is easy to calculate that over a year we will pay 36,000 PLN for renting a larger flat. With the money spent over several years of renting, we could already have a place of our own.

Buying a flat is also made more achievable by the fact that obtaining a loan is fairly easy. Residents of larger cities in particular, where earnings are a few per cent higher than in smaller towns, may have a good chance of being deemed creditworthy. The relatively high down payment (usually 20%) is negotiable at many banks. Numerous government schemes that allow buyers to purchase their first flat at a very attractive price create favourable conditions, especially for young couples.

Not just about prices

Polish sociologists studying housing point out that it is not only the price aspect that prompts most of us to buy a flat. Rents in other European countries are not low either. One of the reasons our housing situation is so different is our political past. After the communist period, in which everything was meant to be "shared", owning something gives Poles a sense of security, certainty and stability in life.

In countries without such a turbulent socio-political past, the prevailing belief is that renting is a promise of freedom. After all, at any moment you can move to another place, another city or district. Western Europeans have a similar attitude to renting cars or bicycles. Why buy, if they can hire whatever they need whenever they want? There is no need to keep it on their own property or worry about keeping it in working order.

Housing trends are influenced by many different factors: the wealth of a country's citizens, temperament, culture, history… It is worth remembering that these trends are not set in stone. Perhaps in a few decades none of us will think of buying as the right path to adulthood?