Prague housing affordability hits record lows in Europe

Housing affordability in the Czech Republic is reaching critical levels. According to the Deloitte Property Index 2026, Prague has become the second least affordable capital in Europe, trailing only Vlora, Albania. A household now requires nearly 17 gross annual salaries to purchase a standard 70-square-meter apartment in Prague, an increase from 15 salaries last year.

The crisis is extending beyond the capital into regional centers; Brno and Ostrava have also entered the top ten least affordable cities in Europe. Experts attribute this trend to a widening gap between rising property prices and slower wage growth, compounded by high financing costs and a lack of new construction.

In response to the shortage, large-scale residential projects are being planned. In southern Prague, the investment group RSJ and Na Jelenách are developing a new district for approximately 16,000 residents. This 50-billion-koruna project aims to provide 5,500 rental apartments, focusing on long-term residential stability rather than temporary housing.

In Slovakia, the situation is also tightening. Average prices for new apartments reached 3,656 euros per square meter, a 12.5% year-on-year increase, with Bratislava seeing even sharper rises. Analysts cite high development costs and lengthy permitting processes as primary drivers of the price pressure.