International Property News
Rents in some Czech towns to grow by almost 50%
29th Sept 2008
Regulated rents in some Czech towns will grow by almost 50 percent as of January 2009, CTK has learnt in a poll among town halls.
Rents in standard first-category flats will grow the most in Zlin, Strakonice and Kutna Hora, for instance. Rents will also increase by more than 40 percent in many districts in Prague.
In contrast, regulated rents will grow at the slowest pace of 24 percent in Krnov.
House owners think the amount of rents in Prague has already reached a level that generates profit. But in most other towns income from rents still does not cover the basic costs needed for maintenance and repairs of houses, they say.
Almost 5,000 house owners have filed a lawsuit against the Czech Republic over rents regulation at the European Court of Human Rights in Strasbourg.
On the other hand, the Czech Association of Tenants has criticised rents deregulation in the long term.
Rents deregulation will last for the third year in 2009. According to the original expectations, the growth in deregulated rents was to amount to 20 percent a year.
The annual rent in most flats should reach 5 percent of a flat's market price in 2010 when rents deregulation should be completed.
There are more than 700,000 flats with regulated rents in the Czech Republic, or almost 20 percent of all flats.
Monthly regulated rents in first-category flats per square metre in Kc:
| Town | Current rent/sqm/mth | Jan09 rent/sqm/mth | %age increase |
| Ceska Lipa (northern Bohemia) | 20.60 | 28.35 | 38 |
| Havlickuv Brod (eastern Bohemia) | 25 | 34.70 | 39 |
| Cheb (western Bohemia) | 23.22 | 29.67 | 28 |
| Karvina (northern Moravia) | 23.21 | 31.08 | 34 |
| Krnov (northern Moravia) | 20.37 | 25.28 | 24 |
| Kutna Hora (central Bohemia) | 28.29 | 41.33 | 46 |
| Pelhrimov (southern Bohemia) | 25.40 | 34.70 | 37 |
| Pisek (southern Bohemia) | 25.27 | 34.87 | 39 |
| Plzen (western Bohemia) | 38.82 | 52.02 | 34 |
| Prague 3 - Vinohrady. Zizkov | 62 | 83 | 34 |
| Prague 6 - Hradcany | 63.60 | 88.50 | 39 |
| Prague 6 - Brevnov. Bubenec. Dejvice. Stresovice | 66.60 | 95.50 | 43 |
| Prague 7 - Holesovice | 63 | 88 | 40 |
| Strakonice (southern Bohemia) | 25.62 | 35.13 | 37 |
| Uherske Hradiste (southern Moravia) | 34 | 50 | 47 |
| Valasske Mezirici (northern Moravia) | 26.37 | 36.26 | 38 |
| Zlin (southern Moravia) | 34 | 50 | 47 |
Source: Prague Monitor