Over the past few years, rent in Prague has increased by 50 percent
As reported by Radio Prague, the cheapest apartments can be rented in Ústí nad Labem and the Karlovy Vary Region. These data were published by Deloitte.
The formation of rental housing prices is most influenced by demand exceeding supply, as well as the rise in the prices of the apartments themselves. Thus, at the end of last year, one could rent a small three-room apartment in Prague (65 sq. m) for 22,000 crowns (880 euros), not including electricity bills.
The average cost per square meter of rented housing in Prague is 339 crowns per sq. m (13.6 euros), while in Brno and Olomouc it is 100 crowns cheaper. In Ústí nad Labem, the price per meter of a rental apartment is only 148 crowns.
It is probably not surprising that the rental market is most active in Prague (over 190 thousand apartments are available for selection), and in terms of the number of residents living in rental apartments, the city of Brno holds the lead.
Despite the fact that the number of completed residential buildings in the Czech Republic is growing year by year, demand continues to greatly exceed supply, which ultimately leads to rising apartment prices. Compared to the average salary in the country, apartment prices are growing twice as fast. According to Moneta Money Bank, apartment prices have increased by 35 percent over three years, while salary growth was only 14 percent.
Over the past three years, 81 thousand apartments have been built in the Czech Republic, and construction has started on over 85 thousand others. The number of unfinished apartments rose by 15.8 percent over the 12 months of 2017, while completed ones rose by 4.6 percent. Construction was most active in the Olomouc Region.
In the third quarter of last year alone, the price per square meter in Prague and major Czech cities jumped by 6.4 percent and averaged 51,600 crowns (2,064 euros). The most expensive residential real estate remains in Prague (an average of 70,000 crowns per sq. m). According to Deloitte, two-thirds of apartments are sold in the Czech capital.