Rent and House Prices in the Czech Republic Are Increasing Significantly Faster Than EU Average
The Czech Republic is one out of two countries in the European Union that recorded a high increase in both rental and house prices. Rents in the country have increased by 80% in the past 13 years, recording the second biggest increase in the EU, and house prices saw a 70% rise – the fourth biggest increase. Photo credit: ZM / Jobspin.
Prepared by Tessa Adamson
Czech Rep., Jul 9 (JS) – Compared to other EU member states, rental and sale prices of property in the Czech Republic are increasing significantly fast. Whereas the EU saw an average rise of 20% in both rent and house prices since 2007, the Czech Republic recorded an 80% increase in rent prices, and a 70% increase in house prices.
The average of 20% fell amid a wide spectrum of changes in the property market, including decreases in both house and rent prices in some countries. House price changes varied from a decrease of 36% in Greece, up to an increase of 91% in Luxembourg. Rent prices varied slightly less, from a low of -18% in Greece, up to 102% in Lithuania. The Czech Republic is at the high end of both scales, with an increase in rent prices of 82%, and a slightly lower increase in house prices of 68%.
While Lithuania and Luxembourg recorded the highest increases in rent and house prices respectively, both countries saw much lower increases in the other sector. Alongside Hungary, the Czech Republic is the only country that recorded high increases in both sectors.
Although both house and rent price increases are now both around 20% higher EU-wide, rent costs have been increasing steadily over the past 13 years, whereas the house market has been up and down, mostly following economic crashes and booms. In the past five years, house price growth quickly outpaced that of rent prices, and is now seeing record increases. In the first quarter of 2020, the EU recorded an annual growth rate of 5.5%, a jump not seen since 2007.
To put it in numbers: rents increased by roughly 7% in the EU in the past five years, whereas house prices increased by 26% in the same period. For the Czech Republic, the difference is even greater: while rent increased by 14%, house prices increased by 53%.