Rental prices surge by 4% in Q3, averaging CZK 15,791 monthly

In the third quarter of 2024, rental prices in the Czech Republic experienced a notable rise, increasing by 4% year-on-year and by 9% compared to the previous quarter. The average monthly rent now stands at CZK 15,791, according to an analysis from the real estate portal UlovDomov.cz. This increase continues to make renting a more affordable option than owning a home, with rent payments still approximately half the cost of a mortgage, similar to the trend observed last year.

Data from real estate agency Sreality.cz indicates that over the past three years, rental prices for smaller apartments have surged by 28%, while larger apartments saw a 22% rise. These increases highlight the growing demand for rental properties in key cities.

Rental costs differ significantly based on the size and layout of apartments. In Prague, traditionally the most expensive city, rent prices per square metre have risen for all apartment sizes. One-bedroom flats (1+kk) saw a 7% increase per square metre, while three-bedroom units (3+kk) experienced an 11% rise. Overall, rents in these layouts have grown between 6% and 14%. For example, a typical 53-square-metre, two-bedroom apartment (2+kk) in Prague now costs around CZK 22,000 per month, up 11% year-on-year.

In Brno, the second-largest city, the rental market has also seen increases. A 27-square-metre studio apartment (1+kk) can be rented for CZK 12,600, while a three-bedroom flat (3+kk) of 74 square metres costs around CZK 23,100. Depending on layout, rental prices in Brno have grown by 3% to 13% over the past year.

Ostrava, another major city, has comparatively lower rental costs. A 30-square-metre studio apartment can be rented for CZK 8,300, while an 84-square-metre, three-bedroom flat costs around CZK 20,300.

Despite the rising rental prices, owning a home remains significantly more expensive than renting. According to Michal Hrbatý, executive director of UlovDomov, the cost of renting a two-bedroom apartment (2+kk) in Prague is still 1.9 times cheaper than owning a comparable property, only slightly down from 2.1 times last year. “As property prices continue to climb and mortgage rates remain high, the cost of rental housing has inched closer to that of home ownership, but renting still offers considerable savings for many families,” Hrbatý noted.

Interest in rental properties has surged in recent years. Sreality.cz reports that compared to the third quarter of 2021, searches for smaller apartments on their platform have increased by 22%, while interest in larger apartments has risen by 18%. The demand for rental single-family homes has seen an even sharper increase, jumping 41% over the past three years.

“The rising interest in rentals is driven by several factors, including the post-pandemic recovery, the influx of Ukrainian refugees seeking housing, and the impact of high interest rates, which discourage many from investing in home ownership,” explained Hana Kontriš, manager of industry services at Seznam.cz, which operates the Sreality portal.

Source: UlovDomov.cz, Seznam.cz and CTK
Graph data from UlovDomov.cz