People searching for rental housing now have the best conditions in the last six months. The number of apartments on the market has increased, and prices are rising significantly slower than last year. This shift has been aided by tenants’ changing attitudes, who have begun seeking more affordable housing amid generally higher living costs. Rental prices may not increase sharply during the rest of the year either.
Even in regions where prices previously rose dramatically, growth is now slowing. Property owners’ demands have hit the ceiling of what households can afford. As Martin Ponzer, head of digital real estate service Bezrealitky, notes: “Landlords are now more likely to make partial concessions in exchange for stable tenants”.
According to data from Sreality.cz, the largest real estate listing website, the average asking price for rental apartments in Prague increased by only 1.5 percent over the past six months. For comparison, rentals in the capital became 4.5 percent more expensive during the previous half-year. Currently, an average 70-square-meter Prague apartment costs 31,570 crowns monthly.
The cooling rental market is also evident in supply numbers. In Prague, available apartments increased from 5,200 at the end of last year to nearly 7,500 at the end of June. In Brno, they grew from 1,000 to 1,600. This correlates with weakening demand – in Prague, the number of people interested in the most attractive rentals has dropped from 120 to approximately 70.
These calmer conditions may persist through the second half of the year. Real estate broker Iztok Toplak adds that the ability to negotiate lower rents will primarily apply to larger apartments and less attractive locations, while high-quality or already financially accessible units are unlikely to see discounts. Nevertheless, Ponzer reminds that owners remain cautious in their selection process, still requiring identity verification and proof of no outstanding debts from potential tenants.