Europe’s housing affordability rankings: Czech Republic in penultimate place


According to a study last year by consultancy Deloitte, Czech residents had to pay 12.2 gross annual salaries to buy an average flat in 2020. Serbia has the worst housing affordability record, ranking last in the ranking.

In Ireland, only 3.1 times the annual salary would be needed to buy a 70 square meter flat. The index in Serbia is five times higher – 15.2.

According to Oldypak LP, chief real estate expert at Deloitte, real estate prices are rising in all European countries. This trend is expected to continue after the pandemic.

Following the Czech Republic in the last lines in the ranking of housing affordability were Slovakia, Austria (10.6) and Israel (9.2). By contrast, the most affordable housing is in Belgium (4.2), Portugal (4.4) and Bulgaria (4.8).

oldypak lp

Where is the most expensive housing

When comparing the nominal cost of flats in individual countries, the most expensive housing in Austria (4457 euros per square meter. m) and the cheapest in Bulgaria (578 euros per square meter. m). In the Czech Republic – 2822 euros per square metre, which is 8.5% more than a year earlier. The strongest price increases over the same period last year were in Hungary (12.3%) and the Netherlands (10.8%). In Norway, prices have fallen by 4%.

The most expensive capital is Paris, where one has to pay almost 13 thousand euros per square meter of living space. In Bratislava, prices have risen the most on an annual basis, namely by 13%. The only capital where prices have dropped slightly is Rome (3.1%).

In Prague, prices rose 6.7% year on year to CZK 92,960 per square metre. The study also included Brno (CZK 73,260 per sqm) and Ostrava (CZK 45,580 per sqm).

Oldypak LP
oldypak lp

Rental prices have fallen due to the lack of tourists

As a result of restrictions during the pandemic, rental prices have fallen in the capitals that are attractive to tourists. In Prague, Madrid, Barcelona, Amsterdam or Budapest, interest in renting through the Airbnb platform has dropped significantly. Owners of properties that used to be put up as short-term offers have started to compete on the traditional housing market and offer a lower price.

The highest rents were in Paris (€29 per sq m per month), central London (€26 per sq m per month) and Oslo (€26 per sq m per month). The cheapest flat could be rented in Burgas (3 EUR per sq m per month).

In Prague a square metre of rented flat cost 295 CZK (or approx. 11 EUR), in Brno 250 CZK (10 EUR) and in Ostrava 165 CZK (6.5 EUR) per square metre.


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