The average monthly rent per square meter in the Czech Republic was CZK 292 in the fourth quarter of last year. Quarter-on-quarter, the price fell slightly by 0.3 percent. Individual rent changes between the third and fourth quarters varied by location. The average rent fell the most in Brno, while it rose the most in Jihlava. This is based on the data of the Rent Index of the consulting company Deloitte. According to Deloitte, rents should start growing again at the beginning of this year.
“In the autumn, the trend we have seen almost all year in the Czech Republic stopped, when due to the continued high interest rates, the interest in rental housing grew, which also increased its price. However, due to the correction of the growth of the previous periods in some locations, falling inflation and other factors, a turnaround occurred and the price of rents in the Czech Republic stopped rising,” said Petr Hána, Director of Real Estate and Construction at Deloitte.
Despite a slight decline on average, rents rose in Prague, for example. Tenants there paid an average of CZK 395 per square metre at the end of last year, an increase of 1.8 per cent compared to the previous quarter. At the level of the city districts, rents grew fastest in Prague 2, by 4.1 percent to an average CZK 459 per sqm. Next, Prague 10 grew by 3.6 percent to CZK 371, Prague 6 by 2.5 percent to CZK 373 and Prague 5 by 2.4 percent to CZK 385. On the other hand, rents in Prague 7 fell the most, by 2.2 percent to CZK 393 per square meter. Prague 1 and Prague 9 saw a 1.1 percent drop, with landlords in the former demanding CZK 470 and the latter CZK 367.
After the capital, the most expensive rents are in Brno, where the price fell by 7.4 percent quarter-on-quarter to an average CZK 325 per square meter. This was also the largest quarter-on-quarter decline among all measured locations. Brno is followed by Zlín, where people pay an average of CZK 267 per square metre per month. The rent in the Central Bohemian Region is one crown cheaper per square metre. On the other hand, the lowest rents are in Ústí nad Labem, where a square metre costs CZK 194 per month. After Brno, Hradec Králové recorded the biggest price drop of 1.6 percent and Pardubice 1.5 percent. On the other hand, the highest growth in average rent was in Jihlava at the end of last year, by 5.1 percent. However, prices also rose in Karlovy Vary and Olomouc.
The highest rents, according to the Deloitte Rent Index, are in new buildings and developer projects, where the average price per square metre rose by 2.3 per cent to CZK 357 compared to the third quarter. This is followed by brick houses, where the price fell by 1.4 percent to CZK 292 per square metre. The last place is occupied by prefabricated houses, where the average price in this segment stagnated in the fourth quarter at CZK 248 per square metre.
Source: Deloitte and CTK
