The average price of a rental offer in the Czech Republic by the end of last year increased year-on-year by 13.8 percent. Prices increased most in Hradec Králové (by 28 percent). In Karlovy Vary, on the other hand, the increase was minimal – only 0.6 percent. This is the result of research by the consulting company Deloitte.
Prices will become more stable
“The increase in rents is due to rising prices in the development market. This is logical, because if you buy real estate more expensive, you should rent it more expensive. There is another reason for the increase in rental prices in the Czech Republic. Czech rental property is not institutionalized. This means that the segment of the rental housing individuals replace the fact that they buy a second, third apartment, for example, for their children, and continue to rent them, “- said Deloitte real estate team analyst Petr Hana.
Sales prices of apartments in Prague and regional centers at the end of last year, according to Deloitte, rose year-on-year by an average of 10.4 percent (53,700 crowns per square meter). This year, analysts expect a decrease in the growth rate of both sales prices and rents. The reason is the current state of the residential real estate market. Due to the regulation of the market by the Czech National Bank will not sell as many apartments. Prices will not fall, but will become more stable, analysts say.
Prague, Brno and Olomouc are the leaders in the growth of rental prices
The highest rent at the end of last year was in Prague – an average of 339 crowns per square meter per month. So renting a two-bedroom apartment with 65 square meters was about 22,000 crowns. Next came Brno (234 crowns) and Olomouc (231 crowns). The cheapest rent was in Usti nad Labem (148 crowns) and Karlovy Vary (157 crowns).
There was a big difference between individual areas in the capital. The most expensive was Prague 1 with an average monthly rent of 431 crowns per square meter. Prague 4 was cheaper by more than a third.
Compared to 2010, rents in the Czech Republic have risen by an average of 21 percent. Most of all in Prague, more than half. Next were Jihlava and Zlin, with an increase of about 30%. In contrast, rents in Hradec Králové, Karlovy Vary and Ostrava rose only slightly.
Prague has the largest number of apartments for rent
Prague has the largest number of apartments for rent. According to Deloitte, the total number is 193,000. The smallest is in Jihlava (6,200). The highest share of rental housing is in Brno (38 percent), followed by Prague (34 percent) and Ostrava (31 percent).
The average share of rental housing in the Czech Republic is 22.4 percent, with one million apartments. Compared with 30 European countries, the Czech Republic ranks 12th. The highest share of rental housing in Germany (50.8 percent) and Denmark (46.6 percent). In contrast, in Romania, Slovenia, Hungary and Slovakia the share of rentals does not even reach 5 percent.
Rental housing in the Czech Republic is mainly owned by the city or individual owners. On the domestic market today operate several private rental housing firms. The largest of them are Residomo (43,000 apartments), CPI Byty (12,600 apartments) and CIB Group (1,700 apartments).