There is a lack of apartments for rent in Prague as rents increase

There is a lack of apartments for rent in Prague as rents increase

Published at: 2016-12-22 11:01 | Author: CIJ Europe
Prague real estate markets face a lack of apartments in Prague and the landlords are increasing rental prices. The falling supply is the reason for the increas of rent, according to server Lidovky.cz. Several candidates often compete for one apartment. The server states that there are approximately 7,600 rented flats in the Prague market, a drop from last years 12,500.

„We can confirm that the Prague apartment rental market is currently a landlord’s market. This is a result of the fact that there is a deficiency of affordable apartments, i.e. apartments with rents up to CZK 35 000,- per month, which leads to rents soaring – if an apartment of this type becomes vacant, the landlord will typically raise the rent by 10 to 15% compared to what the previous tenant paid. This trend is not as significant when it comes to more expensive apartments,“ said Andrea Střechová, Head of Residential Rentals at real estate agency Svoboda & Williams.

„The landlord is nowadays, as opposed to the times after the economic crisis, able to choose between tenants and will naturally opt for the more credit-worthy tenant interested in a longer period – often one whose rent is paid by their employer. This disadvantages certain groups of tenants, for example students. While in the past we were able to offer prospective tenants up to 30 apartments to choose from, nowadays it's 5 at most and the tenant needs to act quickly to prevent losing the apartment."

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