How much will you buy an apartment in Prague now and how is it in other cities
The gradual increase in rental prices continues in the third quarter. For how much do you now rent an apartment and which is of the greatest interest and they are rented first? signaled the data for the second quarter of this year, the third confirmed it further. The rent of a 2 + kk apartment with an average of CZK 14,900 was issued in Prague, which is up to six percent more than in the second quarter. Rising prices are also evident in Brno. This is mainly related to the return of university students, to whom full-time teaching began in the autumn. This follows from the data of the company UlovDomov.cz, which through the services of an ideal tenant to old private owners of more than 1,500 properties worth more than 7 billion crowns.
Turning point
“The turning point came during the summer, now the shift is more visible. This is logical because property owners are finally getting space to increase their rental profits. This seasonal increase is a standard return of students to university cities and can therefore distort the overall trend, which is and will be rather gradual, “said Martin Březina, co-founder of UlovDomov.cz. He added that it is not possible to observe a uniform trend throughout the Czech Republic, which is due to the different dynamics and different input factors of individual cities.
Apartment for rent in Prague. What will affect the price?
In the long run, the most popular 2 + kk layout will currently cost an average of CZK 14,900 in the capital, which is nine stoves more than this spring. In Prague, in the last quarter, larger rental flats rose in price, most notably 3 + kk dispositions at the current average of CZK 21,500 per month. “These values apply mainly to apartments in good condition and in desirable locations, such as near the metro or near university faculties. On the contrary, in the case of prefabricated units or flats on the outskirts of the city, the market reality may be different, “specified Březina.
The current price for renting an apartment still remains below the price before the coronavirus. What is the main reason?
In a year-on-year comparison, however, leases of all layouts are still cheaper. “In all categories, however, we are still below pre-crown prices, which I see as a more significant comparison and an indicator of room for further growth,” said Martin Brezina, who also warns owners of excessive expectations – mainly because competition caused by the influx of flats from Short-term leases are still felt in the market. This mainly applies to apartments with smaller layouts.
The number of vacant flats for rent, especially in Prague, is declining
One of the indicators of market dynamics is the volume of advertising, ie the supply of vacant flats. The data show a quarter-on-quarter decline in housing supply in the capital, which is logically complemented by a gradual rise in rental prices. In the second quarter, 10,158 offers were registered in Prague, and only 7,741 in the third quarter. The flats with a layout of 1 + kk and 2 + kk are also gradually declining, which have a long-term substantial share in the total volume of offers. It is a question of to what extent the returned students or expats contribute to this trend, or to what extent some of these flats are returning to the market of short-term or medium-term rentals, “thinks Martin Březina.
Smaller cities are reacting to changes in the prices of rental apartments at a distance. Where is the cheap rental?
The price situation in other cities in the Czech Republic is uneven in terms of trend – the 2 + kk layout has risen slightly, for example in Brno, Pilsen or Liberec, while in Ostrava and Olomouc the prices of these categories are unchanged. “Smaller cities in the republic usually react to market changes with a certain delay. This applies not only to regional cities, but also to district ones, “added Březina.
Table 1: Rental housing prices in large cities on average in Q3 2021 (in CZK)
Table 2: Quarter-on-quarter comparison of the last two quarters of 2021 (in CZK)
Table 3: Year-on-year comparison of the 3rd quarter of 2021 vs. 2020 (in CZK)
source: UlovDomov