Rental Prices Expected a Positive Rise in Prague
Everyone is aware that the pandemic has had an impact on the rental market. Fewer tourists are coming to the Czech Republic because of the COVID-19 pandemic and many students have returned to their homelands because they studied online.
Many people started working from home and no longer needed to live in the city centre or near an office. Because of this, the demand for apartments with a separate study and a spacious living room increased. Before the pandemic, the proximity of the apartment to the city centre played a key role in determining rental prices. During the pandemic, the demand for apartments with a separate office, more space, a terrace and close to nature increased by two thirds. Tenants are also prepared to pay an average of 14% extra on the rental price for additional amenities such as air conditioning. If the property did not have such advantages, then the interest in it decreased along with the market price. All of this, of course, has affected the previously established property market and the market price of rentals has fallen for some property types. Especially in Prague, the average rental prices of two-room flats dropped to 14 000 Czech crowns.
However, in recent months, according to the heads of a number of analytical portals such as Bezrealitky.cz, European Housing Services and GarantovanyNajem.cz, it has been possible to observe a recovery in the rental market. In their opinion, due to the increase in property prices and the stabilization of the economic situation in the country, it is possible to expect a record growth in rents for all types of properties. The head of Bezrealitky.cz, Hendrik Meyer, predicts that within 12 months we can expect the average rental price to increase by 20% in Prague and 10% in Brno and small towns. According to a number of analysts, this may indeed happen, but we must not forget that the pandemic is not over yet and therefore it is difficult to predict the development of the epidemiological situation, which may negatively affect rental prices.
