Rents in Prague to Grow by Approx 20% Annually

According to the Local Development Ministry, the rents on price-regulated flats are about to grow by 19.2 percent a year on average between 2007 and 2010, especially in the more popular areas. For instance, the rent for a first category 70-mr2 apartment in Prague 1 is supposed to rise from CZK 2,600 this year to CZK 3,380 next year (about 30% grow). In some cities, such as Karlovy Vary, rents are supposed to grow by more than 30 percent. On the other hand, in some regions, such as the Ustecky region in northern Bohemia the rise is supposed to be slower, about 4% a year. As for purchase prices, the average price for large three-bedroom apartment in the suburbs of Prague is about CZK 2.2 million, compared with the CZK 1.9 - 2 million - the value at the of these apartments at the end of 2005.