International Property News

Regulated rents to steeply rise in CR in 2009

26th June 2008

Some 800,000 Czech households who still live in flats with regulated rents can expect a record-high rise in rents next year, the iDnes.cz server reported Thursday, referring to data from the Local Development Ministry.

The highest increase, by almost 50 percent, is expected in central Bohemia.

Last year, regulated rents in the Czech Republic increased by 20 percent on average, this year it was some 26 percent and next year up to 35-percent rise is anticipated, according to calculations in the daily Mlada fronta Dnes.

However, the server writes, some house owners will be able to increase rents by over 50 percent, for instance in Kladno and Benesov, central Bohemia.

The state-controlled deregulation of rents is to be completed in 2010 by another considerable increase in rents, the fourth in a row.

Afterwards the maximal annual rent in a town or village, except for the most expensive localities in the capital of Prague, should make up 5 percent of the flat's market price.

So far the differences between market and regulated rents are very high, iDnes.cz writes.

Source: Prague Monitor