Developers start developing rental housing projects
Residents of the Czech Republic traditionally prefer to own their own housing. According to Eurostat, almost 80% of Czechs live in their own flat or house, while the average for the whole of Europe is 69%. The biggest difference is evident when comparing Prague with other large cities.
In Vienna, for example, 78% of citizens rent a home, while in Prague it is around 32%. It is worth noting, however, that due to the rapid rise in property prices in the Czech Republic and the recent rise in mortgage prices, fewer and fewer people can afford their own home. Some developers are reacting to the new trends in the real estate market by increasing their interest in the rental housing market.
One such developer is Finep, which is increasing the construction of apartments for rent. Last year, for example, 164 apartments were sold in the Residence Pergamenka, project of the Heimstaden Fund, which entered the Prague market. The developer has also completed the construction of rental apartments in the Kaskády Barrandov project for the Zeitgast fund. Finep representatives said that the share of such projects will make up a third of their construction portfolio within a few years.
A number of other developers have similar plans. For example, Trigema will build an apartment building with 140 units, intended only for rent, and the apartments will remain in the ownership of the developer. Such a working model is standard in many Western European countries. These are projects that were originally planned exclusively for sale, but the intention has changed in response to changes in the market.
