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In the Czech Republic, 13.3 annual salaries are needed to buy a new apartment, the most in Europe

by AI | 08.Aug 2024 | Europe in brief AI

In the Czech Republic, the average price of new apartments increased by more than nine percent year-on-year to 4112 euros (104,000 CZK) per square meter.

Illustrative photo – houses, apartments. Photo: Rolf Vennenbernd/dpa

Prague – In the Czech Republic, an average of 13.3 gross annual salaries is needed to acquire a new apartment. This is the highest in all of Europe. Prague is also the second least affordable European metropolis in this indicator, after Amsterdam in the Netherlands. This is based on data from the Property Index of the technology and consulting company Deloitte, which is available to ČTK.

Prague remains the second least affordable metropolis, despite the fact that fewer gross annual salaries are needed for a new apartment there according to Deloitte than last year. While in 2023 it was 14.3 gross annual salaries, this year it is 13.5. In Amsterdam, the number of gross annual salaries required for housing has also decreased, now one needs to save an average of 15.1 annual salaries. Last year it was 15.8.

In the Czech Republic, the average price of new apartments increased year-on-year by more than nine percent to 4112 euros (104,000 CZK) per square meter. The most expensive new apartments among the measured states are in Israel, where a square meter costs an average of 5439 euros (137,600 CZK) and in Austria. At the other end of the price scale is Bosnia and Herzegovina, which recorded the lowest average price of new apartments at 1315 euros (33,300 CZK) per square meter. It is followed by Greece and Romania.

Mortgages in the Czech Republic are the fifth highest in Europe according to Deloitte. Poland has the highest mortgage rates, and Bulgaria the lowest. In the number of completed new apartments, the Czech Republic ranks tenth out of 20 monitored countries. The most are built in Ireland, and the least in Bosnia and Herzegovina.

In rental housing, Prague ranks 24th out of nearly 60 monitored large European cities. The average monthly rent for a new apartment in the capital of the Czech Republic increased year-on-year from 14.4 euros (364 CZK) to 15.9 euros (402 CZK) per square meter, according to Deloitte data. (August 6)