NEWS
Rental housing is getting more expensive and demand is still growing
Rental prices in the Czech Republic are experiencing a leap in growth. According to the latest data, rents rose by 17% year-on-year to an average of CZK 344 per square metre, with the most significant increase recorded in the Olomouc region (34%). Prague and Brno remain the most followed markets, where prices increased by 16% and 24% respectively. Rental housing costs are thus increasingly a significant part of family budgets, a consequence of high demand and limited supply.
Prague and Brno as rental market leaders
In the capital, the average rental price has now climbed to CZK 412 per square metre. For a typical 65 sqm apartment, this means a monthly cost of around CZK 26,700. The Brno market is a bit cheaper, but here too prices have climbed to an average of CZK 316 per square metre, which corresponds to around CZK 21,000 for a similarly sized apartment. These high amounts are further supported by apartment owners who often have to reflect the increasing costs of mortgages or reconstruction.
"The Prague market is unique not only due to high demand, but also due to the development of the institutional rental housing segment," comments Filip Veselý from MORITZ & BAKER. This segment includes professionally managed apartments in projects aimed at more demanding clientele. Such housing is more expensive, but offers modern amenities and premium services.
Institutional housing pulls average prices up
Apartments in institutional projects, such as AFI Home Karlín or Zeitgeist Barrandov, are becoming increasingly popular in Prague. These apartments' rent is around CZK 500 per square metre, significantly increasing the overall average prices. However, for many buyers, this housing remains out of reach, and so there is a growing interest in traditional apartments in less attractive locations. "There is a huge interest in standard rentals in Prague. On average, up to 108 people respond to one advertisement," adds Filip Veselý.
The impact of new construction and state support
In the future, new construction supported by subsidy programmes could have an impact on rental prices. The state plans to finance affordable rental housing through the Affordable Housing Initiative, which targets the development of municipal and private housing. Nevertheless, most experts expect current price levels to remain stable, with growth continuing at a more gradual pace.
MORITZ & BAKER on the rental market
MORITZ & BAKER reflects the current market changes and offers its clients a wide range of rental properties. "Those interested in living in Prague and Brno are always attracted by well-located and modernly equipped apartments. We offer them not only in premium addresses but also in more affordable locations," concludes Filip Veselý from MORITZ & BAKER.
