Homepage New articles

Due to the ongoing pandemic situation, the number of vacant flats is growing rapidly on the market. In most cases, these flats have been used for short-term rentals via the Airbnb service. The owners cannot rely on the promise of a brighter future and started to offer these apartments for long term rentals as well. During the first pandemic wave, after a long time, the supply exceeded the demand. With that, real estate prices have started to drop, and this trend goes on. Living in the city center has thus became more affordable for many Czech people.

Big losses and entering stock market

According to AirDNA analytics, (accommodation price comparing tool) Airbnb sales in US urban locations such as New York, San Francisco and Seattle, dropped by more than a half. In the third quarter of this year, the company generated revenue of $1.34 billion with a profit of approx. $220 million. For the first 3 quarters of this year, the company’s net loss was of $697 million with revenue of $2.52 billion.

Despite the loss, the company is about to enter the NASDAQ stock exchange. The shares will be traded as ABNB. The company can raise $2.6 billion in capital, up to 51.9 million shares should be available to purchase on the stock exchange.

Airbnb has laid off 25% of their staff

In May this year, Airbnb’s CEO announced that the company had to lay off 25% of their staff. Following the redundancies, the company had to let go of several new projects, including transport and entertainment investments, in order to focus on the company’s driving force - accommodation.

Tři zakladatelé firmy Airbnb.
Tři zakladatelé firmy Airbnb. • Source: News.airbnb.com

"People do want to travel, they just don’t want to get on planes. They don’t want to stay in big cities as often as they used to. They don’t want to stay in crowded hotel areas. They want to get out of the house. So we think that the demand will grow. In fact, I am very optimistic about the future of our industry,“

stated Brian Chesky, Airbnb founder.

Safety measures against covid-19

Airbnb hosts around the world must follow the updated Covid-19 safety and hygiene measures to provide their guests a peace of mind when travelling. These are the new safety standards (face mask wearing, social distancing, better cleaning procedures, disinfection) and all hosts have been asked to commit to these new standards by November 20, 2020.

Muž s rouškou při úklidu.
Muž s rouškou při úklidu. • Source: News.airbnb.com

Tourism at the point zero

In Czech Republic, some short-term landlords kept their apartments after the first wave of the pandemic, hoping that the situation would improve eventually. But their hopes were crushed during the summer, as the big cities remained empty. Tourism fell to the point zero, landlords gave up at last and were forced to offer their apartments for the long-term renting. The pandemic also significantly affected the thinking of potential buyers.

Prázdný Karlův most
Prázdný Karlův most • Source: Pixabay.com/ivabalk

No interest in Airbnb apartments

It may seem that the situation would help those looking for a new housing. However, tenants are not interested in Airbnb rentals so much because of their concern of what would happen when it became possible to travel abroad freely and tourists started coming back once again. It is therefore necessary to negotiate the contract with the landlord thoroughly, in order to avoid such situations.

We asked real estate experts about the current real estate market situation

"The pandemic is changing the new housing requirements. People now want a really good product for their money, the emphasis on quality is now even bigger than before. On top of that, after the quarantine experience, there is a growing interest in larger flats with balconies, houses with gardens or apartments with front gardens,"

explains Crestyl sales director Viktor Peška for LP-Life.

Viktor Peška - obchodní a marketingový ředitel Crestyl
Viktor Peška - obchodní a marketingový ředitel Crestyl • Source: Crestyl

Elena Jakubovič, the founder of Y&T Luxury Property, talks about the decline of interest in Airbnb accommodation:

"I don’t believe there is any resurrection for the Airbnb apartment market soon. Covid-19 is not the only reason, there are also the city districts and the Owners Association which are strongly against short-term rentals. Nevertheless, the decline in demand from tourists has its bright side, too – it’s quiet in the city center. With rents having fallen to where they were in 2016, many Czechs can now afford to rent an apartment right in the center of Prague. A 1-bedroom apartment in Prague 1 district will cost approx 20.000 CZK, a 2-bedroom approx. 30.000 CZK. It is clear that the Airbnb owners are still waiting for the market to change, offering to rent their apartments for a period of 1 year, as is obvious at Prague 1. The number of the apartment sale ads increased by 30% compared to March 2020 whilst the number of rental apartments has doubled to 1,499 apartments. 70% of them are mostly studios to 2-bedroom flats,"

adds Jakubovič.

Elena Jakubovič zakladatelka Y&T Luxury Proprerty
Elena Jakubovič zakladatelka Y&T Luxury Proprerty • Source: Y&T Luxury Property

Radek Polák, Trigema spokesperson, can confirm:

"The monthly rent of apartments originally used for short-term rentals is often lower than the market average price. According to the information we hold, contracts with these tenants are usually closed for a period of one year. Once the year has passed, if the situation returns to normal at least to some extent, and tourists start coming back here, there is a risk that a portion of these apartments will go back to the segment of short-term rentals again,"

Radek Polák states.

Byt na prodej v historickém paláci - Praha 1
Byt na prodej v historickém paláci - Praha 1, Praha 1

Prague became more expensive to make up for losses

At the end of June, the average daily rates were lower by 14% compared to the year before, but this changed in August. The owners felt a chance to make up for their losses and properties became significantly more expensive. But the situation did not last long and everything is beginning to return to the very spot where it was in spring. The prices are dropping significantly, which has also affected the average rent price in the entire Prague – they dropped by 15-20%.

For a studio in Kampa or near Wenceslas Square, which would normally cost around 18,000 CZK a month, you can pay around 10,000 CZK now. The biggest drop was seen in less attractive locations, such as Malá Chuchle, Lipence or Benice. On the other hand, the most expensive ones are still Lesser Town, New Town or Vinohrady.

There are a lot of people who do not agree with the short-term rental practices. They criticize the provision of services that turned into nothing but mere hotel rooms.

“Regardless, it is terribly silly that you pay taxes, and some virus suddenly helps you solve a problem, instead of the government,”

said Petr Městecký, the Chairman of the association Snesitelné bydlení (Tolerable Housing).

Mortgages for more than 150 billion

According to the Fincetrum Hypoindex, banks provided mortgages for more than 150.3 billion CZK in the first half of the year. Low interest rates contributed to the high demand. Another trend during the pandemic was cottage rentals. To disappear from the city and enjoy peace and quiet in the countryside… There were almost twice as many cottages sold this year than in 2019. Their prices have risen due to the high interest.

Luxury Prague Life

Share / become a fan

Photo gallery (0)

View photo gallery

About the author

Kateřina Ostrejšová
Luxury Real Estates
Penthouse Troja 309m
Praha 7

Penthouse Troja 309m

5 + KK 309 m², ter. 52 m²
price upon request
Show property
Luxusní vila na prodej v Šáreckém údolí
Praha 6

Luxusní vila na prodej v Šáreckém údolí

7 + 2 440 m², bal. 5 m²
price upon request
Show property
Luxusní vila na prodej Praha východ -1406m
Okolí Prahy

Luxusní vila na prodej Praha východ -1406m

5 + KK 298 m², ter. 31 m²
price upon request
Show property
Luxusní byt s terasou - Praha 1 - Nové Město
Praha 1

Luxusní byt s terasou - Praha 1 - Nové Město

6 + KK 445 m², ter. 144 m²
57 475 000 CZK
Show property
Luxusní vila na prodej - Praha - západ - 632m
Okolí Prahy

Luxusní vila na prodej - Praha - západ - 632m

6 + KK 632 m²
price upon request
Show property
Luxusní vila na prodej - Praha - Západ - 750m
Okolí Prahy

Luxusní vila na prodej - Praha - Západ - 750m

7 + 1 750 m²
price upon request
Show property
Luxusní byt na prodej - Praha 6 - 426m
Praha 6

Luxusní byt na prodej - Praha 6 - 426m

5 + KK 426 m², ter. 250 m²
price upon request
Show property
Luxusní byt na prodej Praha - 320m
Praha 5

Luxusní byt na prodej Praha - 320m

5 + KK 320 m², bal. 4 m², ter. 38 m²
price upon request
Show property
Luxusní vila na prodej 620 m2 - Praha
Praha 6

Luxusní vila na prodej 620 m2 - Praha

Atypický 620 m²
price upon request
Show property
Byt na prodej Smetanovo nábřeží 235m
Praha 1

Byt na prodej Smetanovo nábřeží 235m

5 + KK 235 m²
79 000 000 CZK
Show property
Luxusní byt se zahradou na Praze 8 - 346m
Praha 8

Luxusní byt se zahradou na Praze 8 - 346m

4 + KK 146 m², ter. 27 m²
price upon request
Show property
Byt na prodej v historickém paláci - Praha 1
Praha 1

Byt na prodej v historickém paláci - Praha 1

5 + 1 143 m²
price upon request
Show property
Luxusní penthaus na Praze 1 - 226m
Praha 1

Luxusní penthaus na Praze 1 - 226m

4 + 1 226 m², bal. 7 m², ter. 24 m²
price upon request
Show property
Luxusní kancelář na prodej Praha 1 - Staré
Praha 1

Luxusní kancelář na prodej Praha 1 - Staré

4 + KK 229 m²
50 000 000 CZK
Show property
Penthouse s výhledem na Hrad na prodej - 288m
Praha 1

Penthouse s výhledem na Hrad na prodej - 288m

5 + 1 288 m², ter. 42 m²
93 000 000 CZK
Show property
Byt na prodej Praha 1 - Josefov - 125m
Praha 1

Byt na prodej Praha 1 - Josefov - 125m

3 + KK 125 m²
price upon request
Show property
Luxusní rodinný dům Praha 6 - Ořechovka
Praha 6

Luxusní rodinný dům Praha 6 - Ořechovka

5 + 1 246 m²
46 900 000 CZK
Show property
Luxusní byt k prodeji - Praha 5 - 93m
Praha 5

Luxusní byt k prodeji - Praha 5 - 93m

3 + KK 93 m², ter. 11 m²
11 228 000 CZK
Show property
Kancelářské prostory k pronájmu, Praha 1 -
Praha 1

Kancelářské prostory k pronájmu, Praha 1 -

Atypický 28 m²
42 000 CZK
Show property
Obchodní prostory k pronájmu, Praha 8 - 280
Praha 8

Obchodní prostory k pronájmu, Praha 8 - 280

Atypický 280 m²
price upon request
Show property
Obchodní prostory k pronájmu, Praha 8 - 70
Praha 8

Obchodní prostory k pronájmu, Praha 8 - 70

Atypický 70 m²
price upon request
Show property
Restaurace k pronájmu, Praha 8 - 519
Praha 8

Restaurace k pronájmu, Praha 8 - 519

Atypický 721 m², ter. 202 m²
price upon request
Show property
Moderní kanceláře k pronájmu, Praha 8 - 446
Praha 8

Moderní kanceláře k pronájmu, Praha 8 - 446

Atypický 446 m²
price upon request
Show property
Moderní kanceláře k pronájmu, Praha 8 - 332
Praha 8

Moderní kanceláře k pronájmu, Praha 8 - 332

Atypický 332 m²
price upon request
Show property
Moderní kanceláře k pronájmu, Praha 8 - 361
Praha 8

Moderní kanceláře k pronájmu, Praha 8 - 361

Atypický 361 m²
price upon request
Show property
Luxusní kancelář na prodej Nové Město - 321m²
Praha 1

Luxusní kancelář na prodej Nové Město - 321m²

4 + KK 465 m², ter. 144 m²
40 251 000 CZK
Show property
Luxusní kancelář na prodej, Praha 1 - 42
Praha 1

Luxusní kancelář na prodej, Praha 1 - 42

2 + KK 42 m²
8 810 000 CZK
Show property
Luxusní kancelář na prodej Nové Město - 109 m²
Praha 1

Luxusní kancelář na prodej Nové Město - 109 m²

3 + KK 109 m²
18 184 000 CZK
Show property
Moderní kanceláře k pronájmu, Praha 8 - 483
Praha 8

Moderní kanceláře k pronájmu, Praha 8 - 483

Atypický 483 m²
price upon request
Show property
Moderní kanceláře k pronájmu, Praha 8 - 249
Praha 8

Moderní kanceláře k pronájmu, Praha 8 - 249

Atypický 249 m²
price upon request
Show property
Moderní kanceláře k pronájmu, Praha 8 - 490
Praha 8

Moderní kanceláře k pronájmu, Praha 8 - 490

Atypický 490 m²
price upon request
Show property
Pronájem obchodních prostor, Praha 8 - 108
Praha 8

Pronájem obchodních prostor, Praha 8 - 108

108 m²
47 800 CZK
Show property
Pronájem obchodních prostor, Praha 8 - 55
Praha 8

Pronájem obchodních prostor, Praha 8 - 55

Atypický 55 m²
26 800 CZK
Show property
Pronájem obchodních prostor, Praha 8 - 41
Praha 8

Pronájem obchodních prostor, Praha 8 - 41

Atypický 48 m²
20 000 CZK
Show property
Moderní kanceláře k pronájmu, Praha 8 - 408
Praha 8

Moderní kanceláře k pronájmu, Praha 8 - 408

Atypický 408 m²
194 000 CZK
Show property
Obchodní prostor k pronájmu, Praha 8 - 204
Praha 8

Obchodní prostor k pronájmu, Praha 8 - 204

Atypický 204 m²
85 500 CZK
Show property
Kancelářské prostory k pronájmu, Praha 1
Praha 1

Kancelářské prostory k pronájmu, Praha 1

222 m²
price upon request
Show property
Luxusní kancelář na prodej Nové Město - 117m
Praha 2

Luxusní kancelář na prodej Nové Město - 117m

3 + 1 119 m², bal. 2 m²
price upon request
Show property
Luxusní kancelář na pronájem Nové Město - 117m
Praha 2

Luxusní kancelář na pronájem Nové Město - 117m

3 + 1 119 m², bal. 2 m²
price upon request
Show property
Moderní kanceláře k pronájmu, Praha 1 - 100m
Praha 1

Moderní kanceláře k pronájmu, Praha 1 - 100m

Atypický 100 m²
39 300 CZK
Show property
Kancelář k pronájmu Praha 1 - 30
Praha 1

Kancelář k pronájmu Praha 1 - 30

Atypický 30 m²
12 000 CZK
Show property
Kancelář k pronájmu Praha 1 - 100
Praha 1

Kancelář k pronájmu Praha 1 - 100

Atypický 100 m²
40 000 CZK
Show property
Kancelář k pronájmu Praha 1 - 50
Praha 1

Kancelář k pronájmu Praha 1 - 50

Atypický 50 m²
20 000 CZK
Show property
Kancelář k pronájmu Praha 1 - 37
Praha 1

Kancelář k pronájmu Praha 1 - 37

Atypický 37 m²
22 930 CZK
Show property
Kancelář k pronájmu Praha 1 - 324
Praha 1

Kancelář k pronájmu Praha 1 - 324

Atypický 324 m²
129 600 CZK
Show property
Obchodní prostor k pronájmu, Praha 1 - 132m2
Praha 1

Obchodní prostor k pronájmu, Praha 1 - 132m2

132 m²
86 460 CZK
Show property
Luxusní kancelář na prodej - Praha
Praha 1

Luxusní kancelář na prodej - Praha

1 + KK 33 m²
price upon request
Show property
Byt na pronájem-Praha 3
Praha 3

Byt na pronájem-Praha 3

3 + 1 114 m²
49 000 CZK
Show property
Byt na pronájem-Praha 3
Praha 3

Byt na pronájem-Praha 3

3 + 1 116 m²
57 000 CZK
Show property
Byt na pronájem-Praha 3
Praha 3

Byt na pronájem-Praha 3

4 + 1 181 m²
80 000 CZK
Show property
Kancelářské prostory k pronájmu, Praha 1
Praha 1

Kancelářské prostory k pronájmu, Praha 1

1500 m²
price upon request
Show property
Kancelářské prostory k pronájmu, Praha 1
Praha 1

Kancelářské prostory k pronájmu, Praha 1

500 m²
103 000 CZK
Show property
Prodej luxusní administrativní budovy v Praze
Praha 6

Prodej luxusní administrativní budovy v Praze

966 m²
42 000 000 CZK
Show property
Prodej luxusní kancelářské budovy - Praha
Praha 6

Prodej luxusní kancelářské budovy - Praha

364 m²
39 900 000 CZK
Show property
Kancelářské prostory k pronájmu, Nové Město
Praha 1

Kancelářské prostory k pronájmu, Nové Město

494 m²
200 000 CZK
Show property
Kancelář na pronájem Praha 1 - 130m
Praha 1

Kancelář na pronájem Praha 1 - 130m

130 m²
price upon request
Show property
Supermakléřky - real estate comics