6 things you need to know about the future of renting in Czechia

Czechia and Prague's rental market has undergone significant changes over the past year, driven by rising rents, shifting housing preferences, and evolving real estate trends. Whether you’re a renter, prospective tenant, or investor, here’s what you need to know about the current and future state of rental prices nationwide and in the capital. 

Across the country, rental costs have surged, increasing by double digits in most regions. According to the Bezrealitky real estate portal, rents in Czechia have this year risen by an average of 17 percent year on year, to CZK 344 per square meter. In Olomouc, rents jumped by up to 34 percent year on year. Similarly, Pardubice and South Bohemia saw increases of about one-third.

Prague continues to have the highest rents in the country, with an increase this year of 16 percent and prices reaching CZK 412 per square meter. Within the capital, Prague 2 recently surpassed Prague 1 as the most expensive district for renters. According to the Deloitte Real Index, rents in Prague 2 now average CZK 477 per square meter. Rents in the capital are predicted to surpass the CZK 500 per square meter mark next year.

Rent in the South Moravian region, which includes Brno, are the second most expensive at CZK 334 per square meter, followed by Central Bohemia at CZK 305. Ústí nad Labem remains the cheapest, with rents below CZK 200.

People in Prague and Brno spend nearly 60 percent of their net monthly income on renting a 60-square-meter apartment, while in Ostrava, this cost is less than 50 percent, according to a report by UlovDomov.cz. Rising rental prices have outpaced wage growth nationwide, but renting remains more affordable than mortgage payments, which would exceed 90 percent of income in Prague and Brno. Housing allowances reduce costs by 6–8 percent, yet Czechia ranks fifth worst in the EU for housing availability.

Demand for rental housing in Prague remains high due to the city’s large temporary population and limited owner-occupied housing. This has fueled the rise of institutional rental housing—professionally managed, often furnished apartments targeting affluent clients.

Knight Frank, a real estate analysis firm, reports that these high-end rentals average CZK 538 per square meter, pushing up the city’s overall rental average. For example, a two-room apartment in the Creditas Pobřežní residential project in Karlín costs nearly CZK 36,000 per month.

A key factor behind rising rental prices is investor activity. Many landlords purchased apartments during periods of low mortgage rates and are now renting them out to cover their costs. This has widened the gap between renovated, well-located properties and those in less desirable areas.

Hendrik Meyer, CEO of Bezrealitky, told media outlet E15 that current rental prices are expected to remain steady until mid-2025, with modest increases in some areas. Falling mortgage rates over the past two years have also boosted demand for property purchases, driving prices higher.

According to Vít Soural from the Flat Zone real estate firm, rental prices will likely continue rising. As institutional rentals expand and new developments emerge, Prague’s average rents could soon reach CZK 500 per square meter.

This trend reflects a broader shift toward a rental-based housing market. In the future, rental properties—especially in prime locations—may become the norm rather than the exception.

The Czech government plans to tackle the rental crisis through initiatives such as the Affordable Housing subsidy and loan program, set to launch next year. This program aims to stimulate new municipal and private housing construction, making rentals more accessible to lower- and middle-income families.

Currently, less than a quarter of Czechs live in rental housing. However, this is expected to change as government support programs take effect. On average, rent consumes more than one-third of household income, and these measures aim to ease that financial burden.