Rental rates for flats are on an unrelenting upward trajectory, propelled by a confluence of factors that have reshaped the housing market landscape. This phenomenon is particularly pronounced in urban areas with colleges, where a surge in student demand is driving prices to unprecedented heights, especially in the lead-up to the academic year. Furthermore, the allure of renting is growing stronger as exorbitant property prices and costly mortgages temporarily dash the dreams of homeownership for many.

In bustling urban centers like Prague, the hunt for a rental apartment has become an arduous ordeal for individuals like Petra Slavíčková, a marketing professional. She lamented, “Owners rarely respond to my inquiries, and when they do, they mention receiving numerous responses and securing leases within days of listing.” Ms. Slavíčková, who aspires to start a family, has been willing to provide employment contracts and bank statements to potential landlords but still faces intense competition. This fierce demand is not just limited to Prague but extends to cities like Brno, Plzeň, Olomouc, and Hradec Králové.

One of the significant hurdles in the rental market is the high security deposits, which typically average around CZK 50,000, adding to the financial burden for tenants.

According to data from Bezrealitky.cz, rental rates in Prague have stabilized at an average of CZK 340 per square meter per month, while in the Central Bohemian Region, they have surged to CZK 248, particularly for older flats. Furnished apartments in excellent condition, especially smaller units in sought-after neighborhoods, are commanding premium prices, ranging from CZK 500 to 550 per square meter.

Experts anticipate that the surge in student demand will continue to exert upward pressure on rental prices, not just in Prague and Brno but also in Plzeň, Olomouc, and Hradec Králové. Hendrik Meyer, head of Bezrealitky.cz, remarked, “September stands out as one of the peak months for rental demand, and we anticipate a substantial increase in prices for new lease agreements following the holiday season.”

To mitigate rising costs, many are turning to shared housing arrangements. Bezrealitky.cz reports an 11 percent increase in apartment prices in Prague compared to the end of the previous holiday season, with Brno experiencing a seven percent rise, Ostrava eight percent, and Olomouc five percent. This trend is particularly popular among students who find it financially prudent to share larger apartments with four to eight occupants, offering a practical solution in terms of space, affordability, and availability.

For instance, two university students sharing a 65-square-meter apartment in Prague’s city center would pay over CZK 13,500 each, including fees—roughly CZK 1,200 more than the previous year. In a four-person setup, the cost per person would be approximately CZK 7,600, an increase of about CZK 570. In a group of six, the expense would average around CZK 6,400.

In response to the high costs in Prague, the Central Bohemia rental market is experiencing a resurgence. Suburban towns served by railway lines outside Prague offer considerably lower rental rates, with two people paying CZK 9,800, four individuals paying CZK 5,600, and six occupants paying less than CZK 5,000.

In Brno, two students can expect to pay roughly CZK 10,900 per person, while couples in Hradec Králové and Olomouc must allocate between CZK 8,000 and 9,000 per person each month to secure housing near the city center. This escalating rental market trend underscores the pressing need for comprehensive housing solutions and policies to address the challenges faced by tenants and ensure affordable and equitable access to housing in urban areas.

Article by Prague Forum