In recent years, Prague has become one of the most popular destinations for travelers using the Airbnb accommodation model.
However, the colocation market has been hit hard by the Covid-19 pandemic.
While in 2019 tourists in Prague could choose from almost 13,000 such apartments, the supply has currently fallen to around 1,000. Despite the current easing of restrictions, most landlords continue to favor rentals long-term.
A small studio on Štěpánská Street, just off Wenceslas Square, is one of the few apartments left on the market during the pandemic, although it has been empty most of the time.
Matěj Koutný of the company Blahobyty, which manages this and other apartments in the Czech capital, says demand has started to pick up, albeit very slowly.
“We are far from pre-Covid levels, even in terms of price, but finally something is happening in the tourist market. I would say that we are currently at 25%”.
Despite the drop in the number of short-term rentals via shared accommodation platforms, the Prague City Hall is still trying to pass stricter regulation of these services.
A new regulation requiring companies like Airbnb and Booking.com to provide data on rented apartments, their owners and their intermediaries, which was approved in 2020, has not proven to be very effective, admits Hana Marvanová, city councilor of the United forces for Prague.
“There is a problem with both delivery and execution. That’s why we’ve joined other European cities in calling on the European Commission and the European Parliament to make the obligation enforceable across the European Union.
A new amendment proposed by the city authorities could have a major influence on the shape of the colocation market. It gives municipalities the power to directly regulate short-term housing.
However, the legislation is unlikely to be approved before the parliamentary elections, says Ms Marvanová.
Matěj Koutný, who is also president of the Czech Association of Private Landlords and Residents, disagrees with the proposal, arguing that it could further restrict the supply of accommodation available to tourists.
Mr Koutný says that rather than giving city authorities more powers in regulating shared accommodation services, it would be more effective to focus on enforcing existing rules.
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