Czech Republic Needs 13.3 Salaries to Buy New Apartment

Prague, Czech Republic – The cost of acquiring a new apartment in the Czech Republic has reached an average of 13.3 gross annual salaries, making it the highest in Europe. Despite a slight decrease from last year's 14.3 salaries, Prague remains the second least affordable city in Europe, trailing only Amsterdam, where the requirement has also dropped to 15.1 salaries from 15.8. This trend highlights ongoing challenges in the housing market, as affordability continues to be a pressing issue for residents. The average price of new apartments in the Czech Republic has surged by over nine percent year-on-year, now standing at 4,112 euros (104,000 CZK) per square meter. This increase places the Czech Republic among the higher-priced markets in Europe, with Israel and Austria recording even steeper prices. In contrast, Bosnia and Herzegovina offers the lowest average price at 1,315 euros (33,300 CZK) per square meter, followed by Greece and Romania. Additionally, the Czech Republic ranks fifth in Europe for the highest mortgage rates, further complicating the housing situation for potential buyers. In terms of new apartment completions, the country holds the tenth position out of 20 monitored nations, indicating a moderate level of new housing development. Rental prices in Prague have also seen an uptick, with the average monthly rent for new apartments rising from 14.4 euros (364 CZK) to 15.9 euros (402 CZK) per square meter. This increase reflects the broader trend of escalating housing costs in the capital, underscoring the ongoing affordability crisis faced by many residents.