Saturday, 10 May 2025
At the end of 2024, rental prices in the Czech Republic saw a slight quarter-on-quarter decline, with the average rent falling by 0.3% to CZK 309 per square meter per month. While the overall drop was minimal, regional variations were evident. Rents in Karlovy Vary and Brno decreased by less than one percent, while in most regions, prices either stagnated or experienced a modest increase. The Central Bohemian Region and Zlín saw the most notable growth, with rental prices rising by approximately five percent compared to the third quarter. These findings are based on data from Deloitte’s Rent Index.
Despite the overall slight decrease, Prague remained the most expensive region in the country, with average rents rising by 0.7% in the fourth quarter to CZK 425 per square meter. The highest rental costs were recorded in Prague 1 and Prague 2, where prices reached approximately CZK 468 per square meter. Prague 3 followed closely at CZK 466 per square meter, while other central districts such as Prague 7, 8, and 5 saw rental costs ranging from CZK 430 to CZK 442 per square meter.
Some of the sharpest increases were seen in Prague 3, where rents surged by 5.4% quarter-on-quarter, and Prague 4, which experienced a 4.4% rise. On the other hand, Prague 9 and Prague 6 saw rental prices drop by around 2.5%. In Prague 2, where rents had previously spiked by 5.5% in the third quarter, prices declined by nearly 2% in the final quarter of the year. This adjustment, coupled with rising rental costs in Prague 1, caused rental prices in these two districts to even out.
Outside of Prague, the Ústí Region continued to have the cheapest rental housing, with average rents increasing slightly by 0.5% to CZK 204 per square meter. According to the index, rents in Prague remain 208% more expensive than in Ústí. Rental prices stagnated in Liberec and Jihlava, where rates ranged from CZK 251 to CZK 263 per square meter. However, growth was observed in multiple regions. Apart from the Central Bohemian Region and Zlín, where prices exceeded CZK 290 per square meter, rents in Hradec Králové rose by 3.9% quarter-on-quarter, bringing the region closer in price to the aforementioned areas.
The year-end rental market was also shaped by renewed interest in homeownership. Increased interest rates and an improving economic outlook prompted more people to consider purchasing property, leading to a shift in demand away from rentals. Additionally, the growing supply of newly completed apartments designated for rental housing contributed to price stabilization. Seasonal trends also played a role, as rental demand typically declines during certain periods of the year.
“In addition to redirecting people’s focus towards home purchases, the stagnation of rental prices was likely influenced by the increasing supply of newly completed apartments intended for rental housing. Seasonal factors also contributed, as demand for rentals tends to decrease at specific times of the year,” explained Petr Hána, director of Deloitte’s Real Estate and Construction Department.
Source: Deloitte and CTK
