Prague to increase rents for non-residential premises and land by half of last year's inflation

Prague City Hall will increase rents for its non-residential premises and land by half of last year's average inflation rate, i.e. by 7.55 percent. Adam Zábranský (Pirates), the city councillor for property, announced after today's meeting of the city council. The increase does not apply to flats, in their case the city administration has not yet decided on a possible valorisation. Most of Prague's districts are also planning to increase rents in flats and non-residential premises this year.

"We are proceeding to the valorisation because we have the ambition to increase the city's income from renting non-residential premises and land," the councillor said. He added that in view of high inflation, the city's leadership decided to increase only at half its rate so that a jump in price of more than 15 percent would not be liquidating for some tenants.

In the case of rents in apartments, of which the city council has about 7,300, according to an earlier analysis, the city administration has not yet decided on the indexation. A spokesman for the municipality, Tadeáš Provazník, recently told the Czech News Agency that given the current situation on the energy market, inflation and food prices, the city is still considering whether and how much to raise rents.

According to a recent poll conducted by ČTK, most Prague city halls are planning to raise rents, both in non-residential premises and in apartments. However, the amount of the increase varies from district to district. While some will raise rents by the full amount of inflation, which was 15.1 percent for the whole of last year, others will raise rents less. Moreover, some town halls are still negotiating the increase. The reasons for the increases are high inflation and rising prices for labour or energy, and the desire to raise more money for repairs and maintenance.

Source: CTK