According to brokers, the number of home buyers in the Czech Republic is decreasing, while the number of people renting is increasing. The reason is mainly due to high mortgage rates, fewer and fewer people can afford to buy, as well as high real estate prices. Due to this, the rent has started to rise. In some cities of the republic, they even increased by ten percent.
Energy, real estate and building materials prices or higher mortgage interest rates. The real estate market and its trends are changing. “Currently, it is preferred because they want to own, and at the moment mainly the younger generation prefers rental housing,” explained real estate broker Milan Wancott.
The majority of Czechs live in their own homes with a fifth rent. When searching for a home, customers often look at rental price, location, and services associated with the rental.
“They are looking for apartments up to 2+kk or 3+kk, which are probably the most common requests for rental houses,” said Jiri Hluchi, a real estate broker.
The average rental price per square meter grows differently in each city. This is up nearly 12 percent year-on-year in Prague. The price of renting a square meter in the capital is almost 400 crowns.
“When I take the last apartment I rented in Holasovics, two years ago we rented it for 21,000 net with no fees, and now we rent it for 26,” Wancott said.
However, according to some real estate brokers, most of the clients are interested in owning their own homes and just don’t have the financial means to do so. They save for apartments and houses. Construction output fell 4.3 percent year-on-year in February, according to the Czech Statistical Office (ČSÚ). Building officials issued 6,000 building permits, down 13 percent.
“In February, 3,511 apartments were opened, a decrease of 4.9 percent year-on-year. This decline is due to the category of single-family houses, which has been declining in number since the middle of last year. On the contrary, more apartment buildings were opened, especially in Prague,” said Petra, head of the Department of Construction and Housing Statistics. He pointed to Kurinova.
Two weeks ago, the representatives approved an amendment to the construction law, which should speed up the construction process. In the rankings, the Czech Republic was among developing countries based on the time it takes to process a building permit. A new construction law should change that.