Prague's Airbnb Market Rebounds, Pressuring Local Housing

Airbnb listings in Prague are bouncing back as travel restrictions ease, approaching levels not seen since before the pandemic.

But the resurgence has brought a new shift: the rise of professional property managers, raising fresh concerns about the impact of short-term lets on the city’s already strained housing market.

According to new figures from Prague’s Institute for Planning and Development (IPR), the number of active Airbnb listings has increased more than fivefold since hitting a low in 2021. While the platform hasn’t yet returned to pre-Covid levels, growth is steady. As of summer 2024, around 9,000 apartments were listed across the city.

From Spare Rooms to Full-Time Business

IPR data shows that around 3,000 Airbnb hosts operate in Prague. Yet two-thirds of them – so-called “single hosts” – control just 20% of the listings.

The bulk of Airbnb properties are now in the hands of hosts with multiple listings. In fact, hosts managing five or more units now account for more than half of all short-term rentals in the city.

“Airbnb has become increasingly commercial, and in Prague the trend is especially stark,” says Jan Sýkora, a housing analyst at IPR. “Back in 2019, the average host managed two properties. By 2024, it’s risen to three. This shows growing concentration among professional operators.”

These properties, Sýkora notes, no longer function as real homes. “They’re not lived in year-round. They’re purely short-term rentals.”

That shift is reflected in the rise of specialist property management companies. Zuzana Benešová, founder of Seven Keys, oversees short-term rentals in about 80 flats across Prague.

More Profit, Less Housing

The financial incentive for landlords to go short-term is clear. “Depending on the area, the net income from short-term rentals can be 30% to 50% higher than renting long-term,” says Benešová. That difference is pushing more landlords to exit the traditional rental market altogether.

Matěj Koutný, chair of the Czech Association of Landlords and Private Accommodation Providers (ČAPUS), argues the shift to professional management could raise standards. “It’s a natural evolution,” he says. “It no longer makes sense to rent just one apartment. Larger operators are more likely to comply with regulations and provide quality service.”

But not everyone agrees it’s a positive trend.

Zdeňka Havlová, head of analysis at IPR, warns that the expansion of short-term rentals is worsening housing affordability and fuelling over-tourism in already crowded districts.

“This makes life more difficult for residents,” she says. “It pushes up prices and shrinks the stock of long-term rental housing.”

Housing costs in Prague are already among the highest in Europe relative to income. According to the 2024 Deloitte Property Index, Prague is the second least affordable city on the continent – behind only Amsterdam.

While Airbnb operates city-wide, it remains heavily concentrated in the historic centre. In 2019, 44% of all listings were in Prague 1 and 2. In 2024, that figure has jumped to 56%.

Despite growing public concern, regulation has proven elusive.

Today, there’s no specialised law governing short-term rentals in the Czech Republic. Under current rules, properties used for tourist accommodation must be registered as such under the Building Act – but enforcement is practically non-existent. Inspections are rare, and authorities lack access to the data needed to track Airbnb activity.

Would you like us to write about your business? Find out more