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For people living in Prague, buying a new apartment in Czechia’s capital has become harder than ever. A recent analysis by developer Central Group reveals that it now takes 15.5 years’ worth of gross salary to afford a standard 70 square meter (m²) apartment in the Czech capital. That’s up from 14.5 salaries just six months ago—and a big jump from 10.5 salaries in 2015.
This makes Prague the least affordable city for housing in Central Europe. For comparison, you’d need 14.8 salaries in Bratislava, 11 in Munich, 8.5 in Warsaw, and fewer than eight in Berlin or Vienna.
Central Group’s index is calculated by dividing the average price of a new 70 m² apartment by the total annual net income of an average earner in Prague, assuming they save 100 percent of their salary, resulting in the number of years required to afford the apartment.
What are the costs now?
The average price per square meter for a new apartment in Prague hit CZK 168,000 in early 2025—a 10 percent jump from last year. That puts the total cost of a typical 70 m² flat at nearly CZK 11.76 million at the time of writing.
At the same time, the average gross monthly wage in Prague is around CZK 63,000, meaning even well-paid professionals are being priced out.
Why are prices rising?
So, what’s driving this affordability crisis? The main reason for apartments’ price rise is simple: there just aren’t enough of them. The demand for housing is strong, but the supply of new apartments hasn’t kept up.
One big issue is how slow and complicated it is to get building permits approved.
Because of this, construction takes longer and costs more. Experts say that if the approval process were faster, apartments could be at least 15 percent cheaper. Yet delays continue, making it harder and more expensive to build new homes.
Despite a 60 percent surge in apartment sales in early 2025—the best first quarter in 15 years—the number of available units is actually shrinking. Developers say red tape and slow permitting are major hurdles. Over 150,000 apartments are currently stuck in the planning phase, with hotspots in Prague 5 and Prague 9.
The bottom line? Unless policies change, home ownership in Prague will remain out of reach for many—especially first-time buyers.
