While this time last year we were publishing texts on the FLAT SERVICE blog about how rents were soaring at a rocket-like pace, this year the market is considerably more sober. This is borne out, for example, by data from the Sreality portal, which belongs to the Seznam.cz media house. During the first half of last year the average rent grew by 4.5%, whereas this year the growth was only a third of that, i.e. 1.5%. The main reason is a significantly larger supply of vacant properties. Even so, the best flats at a reasonable price remain in high demand and a listing often draws responses from several dozen people interested in the property. Another factor to take into account is the gradually falling interest rates on mortgage loans and the stabilisation of the owner-occupied housing market.
If dozens or even hundreds of people respond to a listing in Prague, it usually means above all that the asking rent was set incorrectly
While premium projects in the city centre often go largely straight into the hands of so-called institutional investors, in more affordable locations on the outskirts of the capital or just beyond it there are now often vacant, move-in-ready flats waiting for their new owners.
Prague is growing only marginally, while Plzeň and other cities are flying upwards
How do rents in Prague and other large Czech cities look in terms of numbers? The company UlovDomov.cz, which runs the portal of the same name, states that a flat with the most popular 2+kk layout can now be obtained in the capital for an average rent of 22 170 Kč per month. The other large Czech cities are consistently about five thousand crowns behind: in Brno a comparable flat costs 17 490 Kč and in Ostrava 12 250 Kč. Prices in all three of the largest Czech cities have remained very stable this year. The opposite is true of regional capitals such as Plzeň, Olomouc, Hradec Králové and others. Their appeal in the eyes of tenants keeps growing, and that is reflected in prices. So perhaps the lofty advice that people looking to buy a home or find affordable rental housing hear so often is finally coming true – not everyone can afford to live in Prague. And at a time of widespread flexible working arrangements and the option of long-term remote work, not everyone needs to.
Rich history, good beer, an attractive food scene and European football. Plzeň is among the cities people are moving to most often right now, which is significantly reflected in rent prices
The movement of educated and relatively well-off people to other regions naturally creates pressure on rent levels in regional centres, where wages often fall short of those in Prague or Brno. Rent growth in Plzeň, for example, has climbed into double digits, and for large 3+kk flats it even reached 24% year on year.
Immigration from all corners of the world may change everything
Whether rent levels in Prague have really hit their ceiling (at least for now) will become clear in the coming months, at the latest when the data for the whole of 2025 are published. It may be just the calm before the storm – a recent long-term outlook from the Czech Statistical Office assumes that the number of foreigners living in Prague could rise to as many as 1 million by 2050. They would then make up almost 50% of all the capital's residents (today it is just under a quarter). Should this scenario materialise, the rental housing market is in for some very interesting times. Do you rent out a property in Prague and lack the time and energy to follow current market trends? Entrust your flat to professional management and put your worries behind you. We will fully prepare the flat, photograph it, find the ideal tenant and handle all the paperwork for you. You can simply enjoy your rental income without risk or hassle. If you would like more information about FLAT SERVICE services, do not hesitate to call +420 277 000 330 or e-mail sales@flatservice.cz.
