In Prague, purchasing a new apartment is increasingly out of reach for most residents. The capital’s housing market is the least affordable in Central Europe when considering wages, with only Bratislava, Slovakia, coming close in comparison.
If high demand persists into next year, securing an apartment could become even more difficult. An analysis by the development firm Central Group reveals that buying a typical 70-square-meter new apartment in Prague requires nearly 14.7 years’ worth of salary as of the third quarter. This calculation assumes no additional personal expenses, including food or energy bills.
“Prague has stopped worsening, but the number is still astronomical,” said Michaela Váňová, executive director of Central Group. Just a decade ago, residents needed five fewer years’ salary to purchase a new apartment. The analysis factored in the average price of such an apartment—over 11.2 million CZK—and the average wage figures from the Information System on Average Earnings (ISPV), managed by the Ministry of Labor and Social Affairs. The ISPV’s data on average wages tends to be slightly higher than figures from the Czech Statistical Office, which states the average monthly salary in Prague is just under 56,000 CZK. The ISPV reports it at nearly 64,000 CZK.
Despite being surpassed by Bratislava in affordability last year, Prague now holds the position of the most expensive city for new apartments in the region. Experts say the steep housing costs exacerbate ongoing challenges in the Czech Republic. The National Economic Council of the Government (NERV) highlights consequences such as reduced purchasing power, delayed family formation, and lower birth rates.
There are no signs that affordability will improve anytime soon. “Market forecasts suggest further growth,” said Martin Vašek, CEO and Chairman of the Board of ČSOB Mortgage Bank.
Real estate professionals share this outlook. Kateřina Poláková of Knight Frank, a real estate consulting firm, attributes the high prices to rising construction expenses and a persistent shortage in supply.
Estimates indicate that Prague needs to build between 10,000 and 15,000 new apartments each year to meet demand. However, even the lower end of this target has not been met consistently over time.
The highest number of apartment permits in the past decade was in 2021, when nearly 9,500 units were authorized. This figure was an anomaly due to delays from the early stages of the COVID-19 pandemic. On average, the city typically approves only 4,000 to 6,000 units annually.
