Prague: The supply of flats is declining, people are moving here in large numbers
Banks and building societies recorded in April mortgage loans by 40 percent, just over 60 percent. Less interest in buying one’s own flats is thus guaranteed in rental housing. “Smaller and affordable apartments disappear from the market almost immediately, with approximately 15 people calling for one offer. More expensive apartments stay on offer longer, but I still rent faster than before“RE / MAX, one of the addressed real estate companies, told ČTK.
Three times less than usual
According to statistics from GarantovanyNajem.cz, it is currently in the metropolis 4,700 active apartment offers for rent. During the covid in 2020 and 2021, more than 15,000 housing units were available. For example, in 2014, according to the website in Prague, there were about 7,000 apartments for rent.
“We expect the situation yet will get worse Holidays when people generally move more. The main reason is the increase in the price of mortgages and the related unavailability of their own housing for many young people in particular. Of course, it will also depend on how the situation in Ukraine develops, “said the co-founder of the service, Viktor Mejzlík.
The supply is still declining
The offer of rental flats in Prague has been declining since the middle of last year, and at the end of the year it has returned to the pre-ancillary level at the end of 2019. “And it’s still falling this year, “Said Josef Kupec, an expert in construction and real estate from the consulting company KPMG. “It simply came to our notice then unceasing migration to Prague and a large increase in demand for rent as people move away from owner-occupied housing, which is becoming less and less affordable due to high prices, ”he added.
According to him, the end of the anti-epidemic measure and the related return of students outside Prague also played a role in the growing interest in rents. “Tourists are also returning and re-using the apartments for short-term rentals. The number of vacant rental flats is also reduced by the demand of more than 85,000 refugees from Ukraine received by Prague and Central Bohemia, “Kupec added, noting that the same factors also affect the availability of rental housing in regional cities, although not to such an extent.
According to available data, the average market rent for a three-room apartment in Prague with an area of 60 square meters is around 20,000 crowns a month. An apartment with the same floor area can be purchased for an average of 7.5 million crowns and the installment for 30 years can climb over 27,000 crowns per month.
Rent a point of sale?
“Some development companies are considering not selling the apartments, but renting them, in whole or in part. This interest will certainly cause a shortage of apartments for rent“Said Veronika Hegrová, sales director of the Hyponamiru.cz portal.
According to experts, there will be more and more landlords who will conclude contracts with tenants for an ever shorter period. “Landlords currently no longer pay off due to inflation and other factors, such as rising interest rates as before. In order to insure the amount, they will want to accept concluding contracts with tenants for a shorter period, easily for only half a year, with the proviso that they will raise their rent after a while, ”added Mejzlík.
Sightseeing flight from Letňany over the territory of Prague 14. Jiří Marek
View from the television tower in Žižkov
Author: CNC / Jan Zázvorka