Over the past year, the situation on the financial market has shaken up mortgage prices and, indirectly, the entire rental housing market. Client interest is at record levels, despite double-digit growth in average rents. The record holder of the past year was a flat that attracted a total of 327 enquiries on one Czech digital property platform. Our own statistics likewise show that the vast majority of properties find their new occupants within two weeks at most. In demand are above all properties offering some form of outdoor space, whether that means balconies, loggias, terraces or front gardens. This wave of demand for the chance to spend part of the day outside, yet still at home, is reaching us from Western and Southern Europe. Affordable new developments are missing, so rentals take the lead Interest in rental housing is growing mainly because of expensive mortgages and a cooling market for new developments. Developers are currently taking a wait-and-see approach and, according to analysts, the number of newly launched residential projects will fall in 2023 by as much as 70%. Another problem is the rising cost of building materials and labour in connection with the war in Ukraine, as well as a more cautious approach by banks to providing credit financing for large projects with an uncertain future.
Demand is rising sharply, for example, for flats with balconies in Prague’s wider centre – such as Karlín, Vinohrady or Holešovice
Leading development companies are therefore putting fewer and fewer flats up for sale and instead keeping them in their own portfolios intended for rent. In some Prague projects, rental flats account for as much as 50%, with a further share taken over by individual owners who immediately offer them on the market. The most popular layout is 2+kk, practical flats ideal above all for couples or families with one child. That said, there is also long-standing interest in smaller flats for people living alone, and conversely in larger properties for families who want to live in Prague’s wider centre and currently have no desire to move into a house of their own in one of the satellite towns outside Prague. An opportunity to earn more than before If you are considering offering your currently vacant property for rent, you would be hard pressed to find a better moment. A drop in interest rates, and thus in the cost of mortgage loans, is nowhere in sight; economists rather fear further increases aimed at curbing record inflation. The number of properties appearing on the market is limited, so owners can ask for significantly higher financial compensation than in the past. With our Flat Service Partner and Flat Service Garant products, we offer you a guaranteed level of rent, all administrative matters taken care of, thorough tenant screening and day-to-day communication handled on your behalf. You can therefore rent out your property without worries or hassle until, for instance, the situation on the property market turns again. If you are interested in our services, do not hesitate to contact us at any time and take advantage of our special offer – the Partner service free of charge for 3 months. We will prepare a tailored offer for your property right away.
