Interest in rental housing has seen a significant rise in recent months, in
response to the central bank tightening mortgage rules, the ctk news agency
reported citing real estate companies.
The interest in rental housing has driven rents higher, by an average 3 percent in Prague (to 340 crowns per square metre) but as much as 11 percent in the most lucrative areas.
The monthly rent for a medium-sized two-room flat in Prague is now between 15 to 19 thousand crowns, depending on its proximity to the city centre.
Around 9.6 percent of Czechs were threatened by poverty last year,
according to data released by the Czech Statistics Office on Thursday. The
number has grown by 0.6 percent on the previous year.
The poverty line is set at 11,963 crowns per individual and 25,122 per family with two children. The Czech Republic continues to rank among the EU countries with the lowest share of people under the poverty level.
The average monthly wage in the Czech Republic currently stands at 33,840 crowns.
The parties of the ruling minority coalition, ANO and the Social Democrats,
on Monday agreed to raise old age pensions by 900 crowns a month as of
This is perceived as a victory of the Social Democrats who vehemently opposed the 750 crown hike proposed by Finance Minister Alena Schillerová from ANO. Nevertheless the finance minister has stressed that the extra money spent on pensions will have to be saved elsewhere.
The two parties also agreed to raise the children’s allowance from 220,000 to 300,000 crowns. Altogether the hikes should increase state expenditures by 11 billion crowns next year.
The Czech Republic has the highest number of vacancies in the European
Union, according to Eurostat data.
In the fourth quarter of 2018 the ratio of vacancies to the overall number of jobs in the EU rose from 2.2 to 2.3 percent.
In the Czech Republic it rose by 0.1 percentage point to six percent, the highest figure in the EU. Second in line was Belgium and Germany with 3.4 percent, followed by Austria with 3.1 percent.
A new study by the Prague Institute of Planning and Development suggests
the Czech capital could face a sizable housing crisis in the future.
According to the report, which was quoted by news site iDnes.cz, the
city’s population will grow by 160,000 by 2030. To satisfy projected
housing demand, 8,000 new apartments would need to be built annually, a
representative of the institute said.
However, last year fewer than 5,300 flats were completed and developers say a log-jam relating to zoning and planning permits means the number will only decline further in the next few years.
Czech energy giant ČEZ has begun the construction of a pipeline running
from the Temelín nuclear power plant to the South Bohemian city of České
Budějovice. The CZK 1.4 billion project is expected to cover 30 percent of
the city’s heating needs once it is finished in 2021. The Czech
engineering and construction company Tenza has been put in charge of the
project, which aims to build two 26km long underground pipelines connecting
the power plant with the city.
It is hoped that thanks to the pipeline the local heating plant will be able to decrease the amount of coal it burns annually by 80,000 tons, lowering the amount of carbon dioxide released into the atmosphere.
Czech household debt reached 2.32 trillion crowns in the last quarter of
2018, according to data released by the Banking and Non-banking Credit
Register on Thursday.
Year-on-year, the debt burden increased by 177 billion crowns, or 8.3 percent. To the contrary, high-risk debt, where clients failed to pay off at least three instalments in a row, dropped by 4.5 billion crowns to 34.6 billion crowns.
One of the main factors behind the increasing overall debt burden is attributed to rising house prices.
Despite the Czech government having no target date for adoption of the common European currency, an increasing number of Czech companies are using the Euro among themselves. According to data released by the Czech Chamber of Commerce, more than a fifth of all payments to domestic suppliers are now carried out in euros.
The unemployment rate fell to 3.2 percent in February, after two straight
months of incremental growth, according to Czech Labour Office. A year ago,
the unemployment rate stood at 3.7 percent.
Some 241,417 people were out of work in February, the lowest number for the month since 1997. The number of advertised vacancies increased to 333,111.
Citing seasonal factors, the head of the Labour Office said unemployment should continue to drop slightly in the coming months, with positions opening especially in the construction, gastronomy, agriculture, forestry and tourism sectors.
The lowest unemployment rate remains in Prague, where 1.9 percent of people were out of work. The highest is in the Moravian-Silesian region, at 4.8 percent.
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