Increasing Demand for Rental Housing in Prague

Investors in the Czech Republic are increasingly turning to rental properties as a safe and profitable investment. This trend is particularly evident in Prague, where developers construct high-end rental apartments in sought-after neighborhoods near the city center.

According to Home Portal, a real estate research firm, more than 800 new rental units will be added to the market in 2023, with an additional 1,280 units planned for 2024. This represented a significant increase from just a few years ago when only a handful of new rental units were being built yearly.

These new rental units offer a variety of amenities, including concierge services, modern furnishings, and on-site security. For example, a one-bedroom apartment in the Karlín district of Prague can be rented for around 18,000 CZK per month, while two-bedroom apartment rents for about 26,000 CZK per month. Three-bedroom apartments are also available, starting at 40,500 CZK per month.

The growing demand for rental housing is a response to the increasing cost of home ownership in Prague. Many young professionals and families are finding it difficult to afford the high cost of buying a home in the city and are choosing to rent instead. As a result, the rental market in Prague is becoming more competitive, with landlords offering more amenities and services to attract tenants.

According to Jana Panochová of real estate agency Lexxus Norton, the attraction of rental housing lies in its high standard of living, comfortable services, and sense of community. In addition, landlords are increasingly offering long-term rental agreements to provide tenants with more excellent stability and security.

The trend towards rental housing is not limited to Prague, however. Developers are also building new rental properties in other cities, such as Plzeň. For example, the Mint Residential Fund offers over 100 rental units in the Skvrňany district of Plzeň, with prices starting at 19,900 CZK monthly for a two-room apartment.

Overall, the trend towards rental housing in the Czech Republic is expected to continue in the coming years, as investors see the potential for steady returns and tenants seek affordable and comfortable living arrangements in urban areas.