2021 – Rental prices in Prague fall while apartment prices continue to rise…

Amid the real estate price increases in Prague during the COVID year, a 2+kk apartment is currently being rented for CZK 1,000 less per month compared to last year, according to data from RE/MAX Prague.

Despite the drop in rental prices, real estate developers continue to build new apartments and houses with the explicit intention of renting them out instead of selling them.

Mr. Tomáš Wildt from investment company Vihorev Group stated that while Czechs have traditionally preferred to live in owned apartments more than people in other countries, the younger generation is changing that. “It is still true that Czechs prefer to live in owned apartments. We have a different mindset than, for example, Germans or other Europeans, where renting is something they commonly do throughout their lives. However, this trend is changing in our country, especially among the younger generation, who are also not taking out mortgages like their parents did.”

Jan Zachystal, CEO of RE/MAX Czech Republic, says that in the short term, low rental prices are great for young tenants who can now afford apartments in the city center, but he warned that these prices are only temporary. “The situation is good for young renters who can live in areas they normally couldn’t afford. Living just meters from Charles Bridge or Old Town Square in Josefov (Prague 1) is a dream for many. However, once the situation stabilizes and tourism returns, the owners of these apartments will want to return them to their original intended use.”

Outside of Prague, rental prices continued to rise. Studio apartments, for example, rose by 14% compared to last year.