Prague doubles residential rents in first hike since 2005

by   CIJ iDesk I
2020-06-30   09:07

Prague's city council has doubled the rents it charges for municipal flats, the first time it's raised rent levels in 15 years. Claiming that the old price of CZK 65/sqm/month was unsustainable, the body said the new price would only be applied to new rental contracts. Rents will be increased for existing tenants sometime after the Covid-19 crisis has passed. "The current level was unsustainable in the long-term," wrote City Hall in a statement, pointing out that residential prices in the city had increased 140 percent since the last time it raised the rent on its tenants. There will be two new rates: the wider center of Prague (CZK 164/sqm) and everything else (CZK 132/sqm). The city will continue to charge low-income citizens a reduced rate and will not pressure them to find other accommodations. "Thanks to the newly established rent level, municipal flats will continue to be extremely affordable for tenants but at the same time the city will receive more income for the maintenance and expansion of its housing stock," said city councilor Adam Zabransky.