Developers and larger investors are increasingly entering the Czech rental market

by   CIJ News iDesk III
2024-04-02   14:37
/uploads/posts/b723d87aa5b24b57b802244edd078ffdcd87802b/images/680690871.jpg

Developers and larger investors are increasingly entering the Czech market of rental flats, which consists mostly of investment flats held by individuals. The reason for this is the increase in interest in rental housing caused by the worsening availability of owner-occupied housing. Investors are most often concentrating on the construction and purchase of so-called build to rent (BTR) projects, i.e. apartment buildings partially or fully furnished and adapted for rental. This is based on data from the Association for Real Estate Market Development (ARTN), the real estate consulting company BTR Consulting and the findings of the Czech Press Agency. According to estimates by the Rental Housing Association, the number of people living in rented accommodation in the Czech Republic may increase by lower tens of thousands this year.

Build to rent are apartment buildings designed, built and operated exclusively as rental homes. They can vary in the level of furnishings in the apartments - while some have only kitchens, others are fully equipped with all furniture and appliances. According to BTR Consulting, fully furnished apartments are currently the majority in the Czech Republic. Rents are usually well above average and in Prague at the end of last year amounted to approximately CZK 542 per square metre, while for ordinary flats it was CZK 401.

BTR projects are being built mainly in Prague. According to ARTN Trend Report and BTR Consulting, there were a total of two institutional rental projects with 484 apartments in the capital in 2018, while in 2023 there were 2,404 such rental apartments in 16 projects. According to ARTN, 500 new institutional rental apartments are expected to be built in Prague within two years. However, institutional rental apartments are also appearing in Brno.

According to investment group Creditas, 67 percent of the rental market consists of private rentals. The representation of institutional rentals in the Czech Republic is around seven percent. Despite the disproportion, the group launched 200 fully furnished rental apartments on the market last year. The company plans to increase the number in the future, mainly in Prague and Brno. In the centre of Brno, the developer Crestyl is also preparing 137 rental apartments.

The largest institutional landlord in Prague is the Israeli developer AFI, which owns a total of 859 rental apartments in Karlín, Třebešín and Vysočany. In the second phase of AFI Home Kolbenova, the company launched 60 new fully furnished apartments at the end of March. The company plans to complete another 60 apartments every month for a total of 327 apartments. According to the developer, the apartment buildings in Kolbenova and Karlín are 90 percent full. In Karlín, the developer Trigema's project in Invalidovna with 140 furnished rental apartments was also completed last year. The company is preparing another 860 in various projects in Prague.

Other large institutional tenants include SIKO and Česká spořitelna's Affordable Housing, which together are preparing nearly 1,300 rental apartments. The Catholic Church, for example, is also gradually building its position on the market. The XPlace platform, operated by the Prague Archbishopric, bought 111 new rental apartments at the beginning of February this year and 521 more are in the pipeline.

Source: CTK

Switzerland
Albania
Asia
Austria
Belgium
Bosnia & Herzegovina
Bulgaria
Central Europe
China
Croatia
Czech Republic
Denmark
Estonia
Europe
Finland
France
Germany
Greece
Spain
Hungary
Italy
Kosovo
Latvia
Lithuania
Luxembourg
Moldova
Montenegro
Netherland
North Macedonia
Norway
Poland
Portugal
Romania
Russia
Serbia
Slovakia
Slovenia
Sweden
Ukraine
United Kingdom
USA