A new apartment in Prague requires 17 annual salaries, 9 are enough in Warsaw and Vienna!
Housing costs have been growing significantly faster than earnings in the long run. Since the beginning of 2015, apartment prices have jumped by 136 percent, wages “only” by 41 percent. The apartment in Prague itself thus becomes an unattainable luxury for many people, and it is no wonder that the Czechia has risen to the top of the EU countries where housing is the least affordable.
“The growth rate now only copies Bratislava, where 14.8 average gross wages are needed. In contrast, in Berlin, Vienna or Warsaw, people will reach a new apartment the fastest, in about nine years. Compared to Prague, in almost half the time, “ said CG Executive Director Michaela Tomášková.
There may be blaze in Prague, but it is also the most expensive. This is evidenced not only by the data of the international Numbeo database, which monitors the situation in almost 11,000 cities around the world, but also by the current Czech Prosperity Index. Česká spořitelna participates in it and the analytical portal Evropa in the data and has currently awarded the unflattering 21st place in the housing category within the entire EU.
“Real estate prices in the Czech Republic rose from the latest Eurostat data in the fourth quarter of last year by almost 26 percent, which is the largest increase in the EU. Along with the rise in interest rates, the acquisition of one’s own housing has thus become more distant again, “ said Tereza Hrtúsová, an analyst at Česká spořitelna.
Residence Erbenova also relies on a good address and facilities of a quiet Prague district.
According to the CG Housing Availability Index, they have been earning more than 17 years for a new apartment in Prague with an area of 70 square meters. At the same time, I expect an average gross monthly wage in the metropolis of CZK 50,363 and the price of a new apartment by CZK 10.4 million.
It requires 17.3 annual salaries, five years ago it was 12.7.
There is also little construction in the Czech Republic, which according to experts leads to more expensive apartments. According to the head of CG Kunovský, 134,000 new flats are being prepared in Prague, but only about three thousand are completed annually.
Fragment, a project of the Trigema group, is growing in Karlín, Prague. Offers rental housing in 140 apartments.
“Due to the deficit from previous years, Prague needs to build at least 10,000 to 15,000 flats a year,“He said.
Prices (not only) in Prague are driven by a long administrative approval process. while in the north of Europe it is a matter of months, in the Czech Republic there is no exception and a period of ten years, which places us alongside countries such as Côte d’Ivoire.