Czechia: Rents in apartments rose by up to 30 percent in Q2
Rents in apartments rose significantly in the Czech Republic in the second quarter of this year. In large cities such as Prague, Brno or Mladá Boleslav, it was up to 30 percent. The number of concluded leases also continues to grow. This follows from the current information from the Re/Max real estate network. According to the company, the increase in mortgage rates and the tightening of the conditions of the Czech National Bank for the approval of mortgages are reflected in the market. Some people interested in their own housing are therefore forced to start looking for rent.
"However, the return of foreign tourists, who again use short-term accommodation through the Airbnb platform, which offers thousands of apartments that were rented out for ordinary living during the covid period, also has an influence on the increase in rent prices, for example in Prague," said Re/Max CEO Jan Hrubý . In addition to refugees from Ukraine who are looking for long-term accommodation in the Czech Republic, interest in rentals has also increased, according to him, as well as the return of university students to university towns.
The highest rents are in the capital, with an average of 318 crowns per square meter. In the Prague-West district, the rent is around 287 crowns, in Prague-East around 218 CZK per square meter. In the district of Brno - countryside, it is 277 crowns, in Brno 262 crowns and in Mladá Boleslav 269 crowns. On the contrary, the cheapest rents are from 162 CZK in Teplice, 165 crowns per square meter are paid on average in Karvinska and 175 crowns in Mosteck.
The company Re/Max stated that even in the 2nd quarter there was an increased demand for the purchase of an apartment, however it is evident that the number of interested parties is decreasing compared to the previous year and sales are taking longer. "In the last quarter, we also observed a slight increase in favor of cash payments, due to the increase in the price of mortgage loans and further tightening of the conditions for their provision," noted Hrubý. According to him, the reason may also be the expiration of the products, when some banks provided a period of up to two years to find a suitable property and take out a mortgage. "The attractiveness of these products for banks is falling sharply due to the rapidly rising rates, so we expect their decline," added Hrubý.
The greatest interest was in the purchase of 2+1, 2+kk apartments as well as larger three-room apartments for family living. The average price per square meter varies significantly in individual regions. According to the Re/Max network, it was 119,000 crowns per square meter in Prague, 101,000 crowns in Brno, 100,000 crowns in the Prague-West district and 85,000 crowns in Prague-East. Conversely, the cheapest apartments are in the Ústí Region. In Chomutovska you pay an average of 24,000 crowns per square meter, in Teplice 25,400 crowns and in Mostek 26,700 crowns.
Source: Re/Max and CTK