Amid big rallies in the Prague real estate market, a 2+kk apartment is about 1,000 CZK less per month today than it was last year, according to data from RE/MAX.
Despite the slump in rent prices, real estate developers are constructing new apartments and homes with the express purpose of renting them, rather than selling them.
Tomáš Wildt of investment firm Vihorev Group told CNN Prima that while Czechs traditionally preferring to own their own homes more than people in other countries, the younger generations are changing that.
“It is still true that Czechs prefer to own their own apartments. We have a different nature than for example the Germans or other Europeans where renting is a common thing that they do for their whole lives. Even so, this trend is changing in our country, especially in the younger generation who don’t take out mortgages, unlike their parents.”
Jan Zachystal, CEO of RE/MAX Czech Republic says that in the short term, the low rental prices are great for young renters now able to afford apartments in the city center, but that the good deals are only temporary.
“The situation is good for young tenants who can live in places they wouldn’t normally be able to. Living a few metres from Charles Bridge or Old Town Square is a dream for many. However, as soon as the situation relaxes and tourism is restored, the owners of these apartments will want to start using them for their original purpose.”
Outside of Prague, rent prices have risen. Studio apartments in particular are 14% more expensive than last year.