In pursuing more affordable living, many Czechs prefer renting rather than owning homes. Despite a slight decrease in flat prices in recent months, the cost of housing remains high for the average income-earning households. The slow pace of construction further limits the supply of new flats to the market. This trend mirrors the Western European lifestyle, where rental accommodation prevails. Approximately one-fifth of the population in the Czech Republic are renters.
However, even the rental prices are on the rise. Increases are witnessed in the two leading real estate markets, Prague and Brno, and several district towns. Some areas have experienced surprisingly significant gains, but there are also places where prices are falling, as detailed by the consulting company Deloitte.
High mortgage rates make it difficult for people to buy their own homes, hence the high interest in rentals. “Wherever demand exceeds supply, the price increases,” says Petr Hána from Deloitte. Prague increased by almost five percent year-on-year in the third quarter, Brno by eleven percent. Rents in Domažlice and Rokycany even rose by a third. On the other hand, prices in the north, in Teplice, went down by ten percent, and in Chomutov by six percent.
There is a significant difference between the most and least expensive places in the Czech Republic. For instance, in Prague, the average rent for a three-room flat of 60 square meters is more than 23,000 crowns per month. In contrast, in Karviná, a tenant pays 9,700 crowns, Jeseník 10,500 crowns, and Teplice and Náchod 10,860 crowns.
According to Deloitte, the average price for the whole Czech Republic in the third quarter of this year was around 293 crowns per square meter. Compared to the second quarter, it increased by 4.6 percent, continuing the previous price escalation. “This year, we rented flats with an area of 53 square meters on average for more than 14,000 per month. Ten years ago, it was 6,200 crowns less,” said real estate broker Iztok Toplak from RE/MAX.