The rental market in Prague in 2025 remains one of the most dynamic in Central Europe. Demand exceeds supply, especially in the central districts of the city — Prague 1, Prague 2, and Prague 3, which traditionally attract both locals and foreigners, according to analysts at Relocation.com.ua, citing data from Global Property Guide and the Czech Statistical Office.
The average asking rent for a one-bedroom apartment in Prague in 2025 is around CZK 26,500 (≈ €1,050) per month. This is 8-10% higher than in 2024, when the average was around CZK 24,000.
Two-bedroom apartments in central areas (Prague 1, 2, 5) cost between €1,300 and €1,900 per month, while in residential areas such as Prague 9 or Prague 10, rents for similar accommodation range from €850 to €1,200.
According to the Sreality.cz portal, during the first half of 2025, the average rent in the capital rose by 5.7%, and compared to 2023, by more than 15%. The main drivers are the rising cost of new construction, high mortgage interest rates (which keep people in the rental market), and a steady influx of foreign workers.
The share of renters in Prague continues to grow and already exceeds 25% of households, which is the highest figure in the Czech Republic. Young professionals under the age of 35 account for more than half of all renters, while among foreigners, the most active groups are Ukrainians, Slovaks, Indians, and EU citizens.
The profitability of renting in Prague remains attractive to investors: according to Global Property Guide estimates, the average gross yield ranges from 4.8% to 5.4%, depending on the area and type of property.
Among the trends for 2025 is increased discussion around the regulation of short-term rentals (Airbnb): the municipality is considering options for limiting the duration of apartment rentals in tourist areas in order to balance the interests of local residents and the tourism business.
Experts predict that the housing shortage and growth in rental demand will keep the market buoyant until at least mid-2026. New construction in the center remains limited, with most growth in supply expected on the outskirts of the city, particularly in Prague 9, 10, and 13.
Source: http://relocation.com.ua/prague-rental-housing-market-analysis-by-relocation/
The Austrian government has adopted a number of tough measures to regulate the rental housing market. Legislative innovations concern limiting rent growth and extending the minimum length of contracts, which caused a wave of discussion among tenants, property owners and analysts.
If inflation exceeds 3% per annum, landlords will not be able to fully pass on price increases to tenants. Their rent increase can only be half of the excess over the threshold. Example: if inflation is 4.2%, rent can only be increased by 3.6%.
The minimum lease term is increased from three to five years, making it more difficult to replace tenants to eliminate losses through new contracts.
An exception is made for family homes: one- and two-family properties are not affected by the new rules.
For buildings built before 1945, the rules are even tougher:
– In 2025, rents for such houses/apartments cannot be raised at all;
– in 2026, a maximum of 1%;
– in 2027 by a maximum of 2%.
In Vienna, for example, for such buildings there are already legislated maximum rents of around €6.67/m², with a number of surcharges and discounts, but often the final rent barely exceeds €10/m². Economists warn: such measures may curb rental growth, but at the same time reduce the incentive for owners to rent, potentially leading to a shortage of supply (compare with the experience of Berlin).
According to Statistics Austria and other reliable sources, as of January 1, 2025, there are about 1,855,419 people with foreign citizenship living in Austria.
The largest groups of foreign nationals are: Germany (~239,500), Romania (~155,700), Turkey (~124,000), Serbia (~123,000), Ukraine (~100,000). In 2024, the share of people with a migration background is 27.8 % of the Austrian population. This includes those born abroad and their descendants.
The Spanish authorities are tightening control over the short-term rental market in popular resorts such as Mallorca, Menorca, and Ibiza.
The essence of the new rules
The maximum fine for illegal rentals will increase to €500,000, which is 25% more than the previous limit. At the same time, fines will be differentiated: minor violations, such as lack of registration, may result in a warning or a fine of €5,000, while systematic violations, including rentals in protected natural areas or repeat offenses, will be punishable by fines of up to €50,000–500,000.
At the same time, a freeze on new tourist rental licenses is being introduced to stop the uncontrolled growth of supply. The authorities are also offering violators an alternative: if the owner agrees to transfer the apartment or house to the state for five years for use as social housing, the fine can be reduced by 80%.
Why these measures are necessary
The Balearic Islands have been dealing with the effects of mass tourism for a few years now. Because of illegal rentals, housing prices have skyrocketed, and locals are finding it harder and harder to rent apartments in their own towns. In places such as Palma de Mallorca, Ibiza Town, and Ciutadella, residential areas are gradually being transformed into tourist zones, causing protests among the population.
In addition, the uncontrolled flow of vacationers puts a strain on transportation, utilities, and the environment. In response to these problems, the Balearic Islands government is not only tightening penalties but also expanding the powers of inspection authorities. Now, not only municipal services but also the national police, the Guardia Civil, will be involved in enforcement.
Consequences for tourists and property owners
For tourists, the new rules may mean fewer rental options, especially on platforms such as Airbnb and Booking.com, where unlicensed listings are actively removed. It is now extremely important for property owners to check the legal status of their rentals to avoid huge fines.
Will similar measures be introduced in other regions
The experience of the Balearic Islands could set a precedent for other European tourist destinations such as Barcelona, Amsterdam, and Venice, which are also experiencing tourist oversaturation and an affordable housing crisis. If strict rental controls prove effective, other countries and cities may adopt this regulatory model.
Uzhhorod is now the most expensive city in Ukraine in terms of rental housing costs, followed by Lviv and Kyiv, according to the LUN real estate portal.
“In the first two years of the war, Lviv was considered the most expensive city for renting apartments, but now the situation has changed. In July, Uzhhorod became the most expensive city – a one-bedroom apartment here costs an average of UAH 17.7 thousand per month. This is more expensive than in the capital or in Lviv,” the press release says.
According to LUN, the average cost of renting a 1-room apartment in Lviv as of July is 16.5 thousand UAH/month, in Kyiv – 15 thousand UAH/month.
Next in the ranking are Chernivtsi – 12.3 thousand UAH/month on average for renting a one-bedroom apartment, Ivano-Frankivsk, Kropyvnytskyi, Poltava, Rivne – 12 thousand UAH/month, Cherkasy – 10 thousand UAH/month, Khmelnytskyi – 9.5 thousand UAH/month, Ternopil – 9.4 thousand UAH/month.
“LUN” notes that Odesa, which was previously expensive for renting housing, now ranks 14th with 7 thousand UAH/month. The lowest prices are generally recorded in cities that are close to the frontline and suffer from military operations: Chernihiv (5.8 thousand UAH/month), Zaporizhzhia, Sumy (5.5 thousand UAH/month), Mykolaiv (5 thousand UAH/month), Kharkiv and Kherson (4 thousand UAH/month).
