Surging Demand for Rental Properties in the Czech Republic Drives Prices Up by 10%

The Czech Republic is experiencing a significant surge in demand for rental properties, resulting in soaring rental prices across the country. According to Hendrik Meyer, the CEO of European Housing Services, the steady increase in demand has led to record-high rental prices, with some regions experiencing year-over-year growth of up to 10%. The situation is particularly pronounced in Prague, where rental prices have reached unprecedented levels.

In Prague, the average cost per square meter of rental properties has risen to 338 CZK, a substantial increase from the previous year’s price of 300 CZK. This surge in prices is attributed to the imbalance between supply and demand, with an overwhelming number of applicants competing for a limited number of available rental properties. In some cases, as many as 25 applicants are vying for a single rental unit, driving up the rental prices even further.

However, it is important to note that the situation in Brno, the country’s second-largest city, presents a slightly different picture. While rental prices in Brno have plateaued at an average of 272 CZK per square meter, the supply of available rental properties remains relatively low, especially in highly desirable neighborhoods. This scarcity of available rentals in Brno contributes to the stability of rental prices, despite the increasing demand.

In addition to the rising cost of rental properties, renters in the Czech Republic are also burdened with high-security deposits and real estate fees. For a two-bedroom rental in a sought-after location in Prague or Brno, tenants can expect to pay around 20,000 CZK per month, in addition to providing two security deposits and paying a real estate commission.

While the current rental market presents challenges for prospective tenants, there are still opportunities to find affordable rental properties in the Czech Republic with careful planning and thorough research. Platforms like Sreality.cz list over 4,300 rental properties in Prague alone, with new listings regularly added.

As the demand for rental properties continues to surge, it remains uncertain whether relief for renters is on the horizon. However, with persistence and informed decision-making, individuals seeking affordable rental accommodations can navigate the current market conditions and secure suitable housing in the Czech Republic.

Article by Prague Forum

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