The Czech rental housing market is undergoing fundamental change, with apartment downsizing becoming a key trend. While this is often viewed negatively as a sign of housing affordability crisis, institutional rental housing tells a different story.

The structure of real estate investments in the Czech Republic is changing, with Q1 2026 data confirming the growing importance of rental housing and hotel properties, according to a Knight Frank report.

AFI has begun the main construction phase of its rental housing project AFI Home Straśnice in Prague 10. 

AFI Group has announced a new investment in the Nová Elektra residential complex in Prague 9 - Hloubětín. The project, currently being developed by Finep, will be acquired by AFI after completion planned for December 2026 and added to its rental housing portfolio under the AFI Home brand.

European investors are shifting capital from traditional commercial real estate to operational sectors, with purpose-built student accommodation (PBSA) emerging as the most sought-after segment for the first time, according to Savills' investor sentiment survey.

Falling interest rates, soaring housing prices, and growing demand for flexibility are creating fertile ground for the rapid growth of Poland’s institutional rental sector. In this interview, Elżbieta Chmiel, Member of the Management Board at PFR Nieruchomości, highlights who the main tenants of PRS are, how well-designed projects can meet both residents’ and investors’ needs, and why prefabrication and public–private partnerships are key to delivering modern, affordable housing across the country.

Savills has been appointed as technical partner for Reico Nemovitostní fund's rental housing projects in Prague. The fund acquired two developments last year: Nový Opatov G1 and Stodůlky – Britská čtvrť A, B1, B2. Savills provides technical due diligence and construction monitoring for both projects.

Trei Real Estate has completed the first construction stage of its UP2U rental housing development in Poznan, Poland. The project delivered 330 apartments, with the first tenants moving in October 2025. By 2026, the development will comprise 460 furnished rental apartments totaling 19,300 sqm of residential space, requiring an investment of €51 million.

Zeitgeist Asset Management has completed the sale of six apartment buildings in Prague to the investment company BHM Group. The international advising company Charles Irvine has brokered the transaction.

Penta Real Estate and Bureš & partners have established a joint venture called Flet, with an aspiration to change the standard for rental housing in the Czech Republic.