The Czechs rank second to last across Europe in the availability of their own housing. After Slovakia, housing is the most expensive in relation to wages. For a 70 m2 flat, Czechs need the equivalent of 13.3 average gross annual salaries. The Czech Republic has long been one of the European countries with the least affordable housing.
Who is in a similar position and where is the housing most affordable?
The Deloitte Property Index 2023 compares new home prices, rents and other trends in residential markets in 27 European countries, including the Czech Republic. Key findings? Apart from Slovakia and the Czech Republic, the least affordable owner-occupied housing is in Serbia or Estonia. In contrast, the most affordable owner-occupied housing across Europe in 2022 was recorded in Belgium and Norway, where residents need the equivalent of less than five gross annual salaries to buy a standard new home. They are followed by Denmark and Slovenia.
Amsterdam (15.8 average salaries) is again among the top three metropolises where it is most expensive to own a home, followed by Bratislava (14.5), which has swapped places with Prague (14.2), now in third place compared to the previous year.
Between 2021 and 2022, new housing prices rose in 22 out of 25 countries, including the Czech Republic
Israel topped the list of countries with the most expensive new properties, where residents spent an average of EUR 5,701 per square metre for a new building. The second place was defended by Austria (EUR 4,925 per sqm), followed by Germany (EUR 4,800 per sqm), France (EUR 4,639 per sqm) and Norway (EUR 4,204 per sqm). On the other hand, the cheapest new apartments are in Bosnia and Herzegovina (EUR 1,237/m2), Greece (EUR 1,330/m2) and Romania (EUR 1,417/m2).
The most intense price growth was seen in Lithuania, where the average transaction value of apartments jumped by 31.9%. Bosnia and Herzegovina came in second place with 27%, followed by Croatia with its 20% growth. The average price also rose in the Czech Republic, where it jumped by more than twelve percent, specifically from €3,342 in 2021 to the current €3,753 per square meter. In contrast, the average price of new apartments fell in only three countries. In England (-18.8%), Denmark (-9.7%) and partly in France (-0.2%).
Read more here: Deloitte Property Index 2023 | Deloitte Czech Republic