Prague will increase rents in its non-residential premises by 3.8 percent
In the past two years, the city has canceled the valorisation of rents due to the covid pandemic. Until then, inflation has always risen at most.
“Depending on the segment and the location of individual tenants, we proceeded to apply or not apply valorisation. Within the center, we did not use it for meals and hospitality or accommodation. Outside the center, we used it everywhere except for accommodation, due to the fact that the accommodation business was affected almost the most by the covid, “said councilor Jan Chabr (TOP 09).
In the center, the increase in rents only concerns garages, parking, warehouses, storage rooms or land leases. The area of the Old and New Towns, Hradčany, Malá Strana and Josefov is addressed as the center. Outside the center, the price increase will affect all entrepreneurs located in urban areas, in addition to accommodation.
According to the councilor, the pandemic was also reflected in the amount of rent offered by those interested in urban space. According to him, in tenders, the municipality receives offers from candidates with a fifth or a quarter amount against the time before the covid. “Therefore, it is in our interest to keep tenants who pay us high rents, and that is why we did not proceed to valorisation in the center,” said Chabr.
For the past two years, the city management has approved, for example, the postponement of new entrepreneurs to support entrepreneurs. The office also waived penalties for non-payment of rent for self-employed persons, and hoteliers were forgiven for their stay. Restaurants, on the other hand, did not have to pay for the occupation of public space for restaurant front gardens. A fund to support entrepreneurs was also created, in which the city invested 600 million crowns.