Prague Rent Prices are Now Higher Than the Average Czech Salary

The cost of renting a 2+1 flat in Prague 1 is now higher than the average salary in the Czech Republic, reports Nova.cz

How tough is it to find reasonably-priced flat to rent in central Prague?

Average apartment rental prices in the Czech capital are now in line with other major cities in Europe, such as Berlin.

There’s only one problem with that: the average Czech salary is less than half of that of our German neighbors.

In fact, the average Czech salary is now less than the average cost of renting a 2+1 apartment in or near the city center, reports Nova.cz.

Nova pegs the average Czech net salary at 22,915 CZK per month, and the average cost of a 2+1 in or near Prague’s city center at more than 25,000 CZK, which sounds about right.

While the average Prague gross salary is now around 40,000 CZK per month, and the average net exceeds 30,000 CZK, that still means the average Prague resident will have to pay out a huge chunk of their earnings on apartment rental costs.

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For students and families, the costs can be an especially difficult burden.

“If one says the normal apartment for a family costs twenty thousand, half of their budget goes only to the rent,” Nova quotes an unidentified social media commentator.

Students in Prague, meanwhile, are likely to seek flatsharing options near the city center. But costs of 12,000 CZK per room, or higher, may drive them towards the outskirts of the city.

In the last four years, apartment costs in the Czech Republic have risen by 40%. While Prague is leading that charge, other major cities aren’t far behind: Brno and Hradec Králové have also seen significant rises in apartment prices in recent years.

In fact, the Czech Republic now ranks fifth in the EU in terms of real estate prices according to the Nova report, which seems difficult to believe.

Why have Czech real estate prices risen so much in recent years?

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In Prague, a lack of free spaces – and relatively few new developments on the market – have created an imbalance of available apartments, especially in the city center. But many point to another culprit: the rising popularity of AirBnB in the Czech capital, and transition in the city center from long-term residents on limited budgets to short-term visitors with money to spend.

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