Prague City Councillors approved the indexation of rents and lease rentals of non-residential premises, buildings and land owned by Prague for this year. The rents will be indexed by 10.7 percent, which corresponds to the inflation rate for last year announced by the Czech Statistical Office.

"Regular rent indexation is important, among other things, because it is the only way to increase rents for historic contracts concluded for decades. It also makes sense because of the large number of open-ended contracts. As inflation rises, the city's costs of keeping the properties in good condition also increase," explains Adam Zábranský, Councillor for Property, Legislation and Transparency.

Last year, rents were indexed at 7.55 per cent, only half the annual rate of inflation. The aim was to avoid a potentially devastating spike in increases after the three crisis years of the covid-19 pandemic. The resolution applies to all contractual relationships that contain provisions for the indexation of rents or lease payments.