The city of Brno is among the urban centres where renters face high living costs in Europe. Alamy
The city of Brno is among the urban centres where renters face high living costs in Europe. Alamy
The city of Brno is among the urban centres where renters face high living costs in Europe. Alamy
The city of Brno is among the urban centres where renters face high living costs in Europe. Alamy

Czech city rents out historic buildings to tackle housing crisis


Tim Stickings
  • English
  • Arabic

The Czech city of Brno is tackling a housing crisis by renting out historic buildings in the city centre and allowing tenants to renovate them.

The millennium-old city, a former capital of Moravia and home to a medieval castle and cathedral, hopes to reduce pressure on the housing market and save money on upkeep that will be partly paid for by residents.

It comes as soaring housing costs across Europe leave many people, especially young renters, priced out of city centres.

A report by the Organisation for Economic Co-operation and Development found last year that Czech cities suffered from a chronic housing shortage, with Brno the second most expensive city for renters after Prague.

Jan Mandat, a district council member in Brno, said the project was in a pilot phase with 10 apartments available but would be expanded if there was a demand for it.

“If there is enough interest from the citizens, we will allow the whole project to continue during 2022 and the following years,” he was quoted as saying by cities network Eurocities.

Tenants can have the interior of historic buildings repainted, bathrooms refitted and floors remodelled, but it must be done to professional standards. Some of the repair costs will be deducted from their rent.

At least some of the apartments are in the heart of the city’s pedestrian zone. Some of the buildings were put up in the early 20th century or after the Second World War, while others are older.

“This opens up the possibility of nice living for those who are not wealthy enough to be able to buy their own housing,” said the mayor of Brno’s central district, Vojtech Mencl, when the project was launched last month.

“I assume that such tenants will live in our apartments for a long time, so they will also be interested in taking care of the house together with others and keeping it in order.”

Last year’s OECD report put Brno on a similar level to Hamburg, Vienna and Berlin for rental prices — not particularly expensive by European standards but high compared with other Czech cities.

House prices in the country have risen by almost half since 2013, almost twice as fast as the OECD average, analysts found.

Paris, London, Oslo and Dublin were ranked among the continent’s most expensive rental markets. In the UK, rising inflation has led to fears that fewer people will be able to afford to buy homes.

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Winner: Golden Goal, Pat Dobbs, Doug Watson.

The years Ramadan fell in May

1987

1954

1921

1888

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
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What are the regulations?
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

10 tips for entry-level job seekers
  • Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
  • Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
  • Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
  • For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
  • Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
  • Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
  • Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
  • Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
  • Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
  • Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.

Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz

Updated: February 17, 2022, 2:52 PM