Understanding the challenges of Prague’s competitive rental market
Finding an apartment in Prague can be overwhelming. Whether you are a foreigner relocating for work, an expat beginning your rental search, or a family wondering where is the best place to live in Prague, the process often becomes complex and time-consuming. Below are the main reasons why Prague rentals are so competitive today.
A persistent shortage of housing
The housing supply in Prague has not matched the city’s growing demand for years. Experts estimate that the city needs at least 10,000 new apartments every year, yet the number of completed flats consistently falls short. Slow construction approvals, rising building costs, and limited investment mean that the rental market remains tight, with fewer properties available for both locals and foreigners.
Rapidly rising rental prices
Rental prices are climbing at record speed. In early 2025, the average rent across Prague was approximately 438 CZK per sqm. per month, meaning a standard 50 m² apartment costs around 21,900 CZK per month. Popular areas like Prague 1, Prague 2, Smíchov, Karlín, and Holešovice are even more expensive due to many amenities, vibrant communities, and excellent public transport connections.
From 2019 to 2023, rental prices rose by nearly 19%, and experts forecast an additional 5–7% increase during 2025. This upward trend is unlikely to slow while demand continues to exceed supply.
Population growth and increasing demand from foreigners
Prague’s population is growing steadily, and foreigners now represent around 25% of residents, which equals about 350,000 people. According to projections from the Institute of Planning and Development of Prague (IPR), that number could rise to around 900,000 by 2050.
This growth is driven by a strong economy, international companies expanding their offices in Prague, and the city’s reputation for safety, culture, and high quality of life. The influx of foreigners puts additional pressure on the market, increasing competition for apartments in all districts.
Impact of the Ukrainian refugee wave
Since early 2022, Prague has welcomed approximately 350,000 Ukrainian refugees. Many have chosen to live in the capital and surrounding areas, and importantly, they are not limited to the budget segment. Families and professionals often rent in mid-range and high-end categories, adding to the competition across all levels of the market.
An excess of interested renters and landlord preferences
Landlords often report receiving 100 or more inquiries for a single apartment listing within just a few days. This level of demand gives owners the freedom to be highly selective when choosing their tenants.
In this landlord-driven market, selection criteria play a significant role. Many owners make decisions based on nationality, with Czech tenants often preferred for lower-budget properties, while in other level apartments landlords may lean toward European Union citizens over non-EU foreigners. Marital status also influences decisions, as couples or single tenants are often considered more suitable than families. Pet ownership can be another deciding factor, with applicants who have pets frequently placed lower on the list of preferred candidates for apartments. Landlords also value insight into where tenants work, as stable employment provides reassurance and makes an application more appealing.
Why Prague attracts foreigners
Prague is a very desirable city in Europe for relocation. The combination of a strong economy, excellent job opportunities, an efficient public transportation system, a safe environment, and a rich cultural life continues to attract foreigners. As a result, apartments are rented quickly, creating a highly competitive environment for anyone conducting an expat rental search or trying to find the best areas to live in Prague.
Eres Relocation can make the process easier
Navigating the Prague rental market can feel exhausting, but it does not have to be. At Eres Relocation, we help you find suitable options, organize and attend viewings, support you during negotiations, and guide you through the paperwork. By managing every step of your home search, we ensure you are well-prepared and positioned to secure your ideal home in this challenging market.
For practical advice on how to rent more successfully and what you need to know when you search, read our next article: “Five Tips to Make It Work and Find a Home in Prague.”
📩 Are you planning a move to Prague and struggling with the housing market? Contact our team at Eres Relocation Czech Republic today to learn how we can support your home search and relocation needs.
