Czech apartment rental prices decreased at the end of 2023

The average monthly rent per square meter in the Czech Republic witnessed a modest decrease to CZK 292 per square meter in the fourth quarter of the previous year, marking a 0.3 percent drop compared to the third quarter, according to data from consulting firm Deloitte provided to Czech News Agency.

The data highlights varying regional changes, with Brno experiencing the most significant decline and Jihlava the most considerable increase. While the country overall saw a decrease, Prague saw an average increase of 1.8 percent in rental costs, reaching CZK 395 per square meter.

Despite the brief dip in rental prices at the end of the year, Deloitte anticipates overall rent growth to resume trending upwards in the upcoming year after the correction seen in response to previous periods of inflation and heightened interest rates.

In Prague, rent prices exhibited diverse patterns across districts. Prague 2 led the growth with a 4.1 percent increase to CZK 459 CZK per square meter, while Prague 7 witnessed the most considerable decline, down 2.2 percent to CZK 393 per square meter.

Beyond the capital, Brno experienced a significant quarter-on-quarter drop of 7.4 percent, resulting in an average rent of CZK 325 per square meter. Brno's decline surpassed all other measured locations, but remained the second-most expensive city to rent next to Prague.

Zlín is the third most-expensive Czech city to rent in, with average prices of CZK 267 per square meter. On the other end of the spectrum, the lowest rents are in Ústí nad Labem at CZK 194 per month. 

Despite the overall decline in rental prices throughout the Czech Republic, the Deloitte Rent Index reveals that rents in new buildings and developers' projects saw a 2.3 percent increase, reaching an average of CZK 357 per square meter.

Brick houses saw a 1.4 percent decrease to CZK 292 per square meter, while panel houses maintained a stable average price of CZK 248 per square meter.

The Czech Republic's rental market appears to respond to various factors, including corrections in response to inflation, interest rate fluctuations, and regional demand. As the real estate landscape continues to evolve, stakeholders are closely monitoring these trends, with the expectation that rents may rebound in the near future.