The Czech Republic is experiencing a surge in rental prices, with no signs of slowing down. According to recent data from Deloitte, the average monthly rent across the country has reached 310 CZK per square meter, translating to a staggering 21,700 CZK for a standard 70-square-meter apartment. This represents a 1.6% increase from the previous quarter and a 5.8% jump year-over-year.
Prague and Brno, the country’s largest cities, continue to lead the pack with exorbitant prices. A typical apartment in Prague now commands a monthly rent of 29,500 CZK, while Brno follows closely at over 25,000 CZK. Even traditionally affordable cities like Ústí nad Labem have seen prices surpass the 200 CZK per square meter threshold for the first time.
The relentless rise in rental costs is attributed to several factors, including high property prices and strong demand. With the average price of apartments across the Czech Republic soaring to 101,700 CZK per square meter in the second quarter – a 12% year-over-year increase – many are finding homeownership increasingly out of reach. This, coupled with slow-to-decrease mortgage rates, is pushing more people towards renting.
Experts predict that this upward trend in rental prices is far from over. Tomáš Jelínek, director of Century 21 real estate agency, suggests that the full impact of rent increases will be felt with a year’s delay due to the nature of rental contracts. This indicates that significant price hikes are still on the horizon for the coming years.
As a result of these rising costs, there’s a growing trend towards smaller apartments and alternative living arrangements. Data from Sreality, the largest real estate portal in the country, shows a 22% increase in demand for studio and one-bedroom apartments over the past three years. Real estate agents are also reporting increased interest in room rentals and shared living spaces as people seek more affordable options.