The revival of rental housing


For many years rental housing has been associated with such platforms as Airbnb, Booking and other services providing apartments for a daily rent. Only in Prague - tourists were offered more than 15 thousand apartments for a short-term rent.

   The coronavirus pandemic and the governmental restrictions in most countries have reduced tourist flows to zero. Thus, thousands of apartments that were previously rented on a short-term basis have entered the long-term rental market, that is mostly for residents. A sharp increase in the number of apartments offers in the central parts of Prague has also affected the cost of rent.

   For example, the rental price in the city center of Prague, just a few steps from Wenceslas Square or Charles Bridge, could be temporarily lower than in the districts remote from the city center. However, it is worth noting, that due to the inaccessibility of the own housing and uncertainties in the labor market, the demand for long-term rent continued to grow among residents. 12,120 apartments were rented in the Czech Republic during the third, which is 35% more than a year ago.Thus, the crisis in the long-term rental market did not come and the prices soon continued to rise.

   It should also be noted that due to favorable conditions and low mortgage rates, many Czech investors have started to invest in real estate for further rental. In some Prague development projects such buyers represent the largest part.In addition, large funds and investment companies are showing interest in Czech real estate. For example, the investment company Zeitgeist has already bought the first batch of 70 apartments, the Swedish group Heimstaden is going to buy about one thousand apartments during the next year in the Czech Republic for the further rental.There is a reason to believe that large players such as investment companies will start entering the rental housing market, as the interest in it has only been growing for the last years.Moreover, the real estate investments are still one of the most reliable and reasonable.

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