Average Prague residential rents can vary by up to CZK 6,700 depending on frugality

by   CIJ News iDesk III
2023-09-21   16:34

The average rent for Prague apartments in different energy classes can vary by up to CZK 6,700 per month. Paradoxically, rents in the least economical G-class flats are often closer to the most economical "A" new buildings. These are often apartments in older buildings, but at attractive addresses in the centre or in historic buildings. This results from an analysis of the company UlovDomov.cz, which manages 2,500 flats across the Czech Republic. For the analysis, flats with a kitchenette were selected for comparison, because according to the company, they are most represented on the market in new A-class buildings.

"We know from experience that tenants do not look at the building energy performance certificate (PENB) that much. They primarily perceive the amount of rent and real energy bills. Here, tenants have a budget for rent and energy. If the energy costs are lower, they can then invest more in rent," said Michal Hrbatý, executive director of UlovDomov.cz.

According to the analysis, apartments in energy class B are above the average rent prices. The price difference between these apartments and A-class apartments is only in the order of hundreds of crowns and at the same time they provide acceptable operating costs. There are also considerably more of them on the market than the most energy-efficient housing. There are also quite a lot of Class C and D flats on the market, but they are considerably cheaper than Class B. These are mainly older flats, for example in prefabricated buildings, which have already been modernised. Most of them are insulated and have replaced windows. Properties in the least efficient classes E to G make up the smallest part of the offer in Prague, according to UlovDomov.cz.

The PENB certificate assesses heating, heat transfer through the building envelope, cooling, ventilation, humidity treatment, hot water preparation and lighting. The energy performance certificate is required by office buildings, hospitals and schools, as well as family houses and apartment buildings.

According to an earlier analysis by UlovDomov.cz, the average rent for a 2-bedroom apartment in Prague in the second quarter was around CZK 18,525. This is almost CZK 3,500 more than for the same apartment in Brno and CZK 7,000 more than in Ostrava. Compared to last year, rents in these apartments in the capital and Brno have increased by five percent, in Ostrava by six percent and in Olomouc by nine percent.

UlovDomov.cz operates one of the largest Czech advertising portals focused on rentals and a tool called Risk Screening. It is a member of the Miton group alongside projects such as Glami, Bonami, Twisto and Qerko. Since 2022, it also publishes the UlovDomov Index, which compares monthly rental payments with mortgage payments at current rates and prices per square meter.

Source: UlovDomov.cz and CTK