Typical new Prague flat costs nearly 15 years’ average salary, says developer

It currently takes the equivalent of 14.7 years’ average salary to buy a new 70-metre flat in Prague, which is five times more than a decade ago, according to data published by property developers the Central Group on Wednesday. While the situation has slightly improved due to wage growth outpacing price increases, housing in the Czech capital remains the least affordable in Central Europe.

Investors are planning to build over 146,000 new flats in Prague, which is 3,000 more than last year. However, experts, including the Prague Institute of Planning and Development, say at least 10,000 new flats are needed annually to fulfil the demand. In the first three quarters of 2023, 5,350 flats were sold, double last year’s sales, with a total of 7,000 expected by the end of the year.

Prices for new flats rose 7% year-on-year, with the average price per square meter for a new flat in Prague reaching CZK 160,720, compared to CZK 132,604 for older apartments.