Tourism boom caused housing prices growth in Prague

Time to read
1 minute
Read so far 0%

Tourism boom caused housing prices growth in Prague

November 06, 2018 - 14:59
0 comments

Czech capital recently became number 5 tourist destination in Europe, which caused property prices to grow by 50% since 2013, Bloomberg reports. Local residents are not very happy about it, since besides price growth, they also have to face with annoying tourists renting apartment for short-term stays from such services as Airbnb.

Prague, Czech Republic | © Ian Kelsall, CC0 1.0

Czech capital recently became number 5 tourist destination in Europe, which caused property prices to grow by 50% since 2013, Bloomberg reports. Local residents are not very happy about it, since besides price growth, they also have to face with annoying tourists renting apartment for short-term stays from such services as Airbnb. As a result, they are asking politicians to tighten control over such services. Politicians in turn promise to increase taxes, tighten rules and limit periods, for which flats can be rented.

The similar problems exist in other European cities as well. Airbnb encountered difficulties with residents of Dublin and Paris. Amsterdam already limited short-term rents to 30 nights per year, while Berlin obliged to get special permit, if more than a half of apartment is rented.

In October European Commission offered to introduce rules making renting services to file rental income, submit data on renting frequency and gather charges similar to hotels.

Airbnb from its side is trying to persuade residents of Prague that its services are useful for the city. Special report showed that Airbnb and smaller rivals support tourist boom and provide $5 billion per year for the economy of Czech Republic. Last year guests of Airbnb spent $389 million on rooms, food and other services in Prague. Besides, company provides for additional jobs.

But it sounds very hollow for residents of Prague, as median cost of housing grew to 11 average annual wages in the country, which is the highest level in Europe.