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Prague Remains the Most Lucrative Place for Living in the CE Region

"Prices of new residential properties in Prague exceed the prices in Warsaw by almost EUR 900/m2 and are very similar to prices in Berlin and Brussels."

- Diana Rádl Rogerová,
Partner in Deloitte and Real Estate Industry Leader for Central Europe

Prague, 24 June 2013 – Despite a moderate decrease in prices in 2012, Prague remains one of the most expensive Central European cities, with a price for a new dwelling amounting to approximately EUR 2,500/m2. In 2012, the price for new housing in Prague was similar to that of Berlin or Brussels, for instance. These are the results of the second Deloitte study entitled "Property Index", which analysed the factors influencing the development of residential property prices and residential markets in 13 European countries.

"Prices of new residential properties in Prague exceed the prices in Warsaw by almost EUR 900/m2 and are very similar to prices in Berlin and Brussels. At the same time, Prague is one of the few European cities where the prices of new residential properties continue to reach more than 200% of the national average. A similar situation can be observed in London, Berlin, Frankfurt, Hamburg and Paris," said Diana Rádl Rogerová, Partner in Deloitte and Real Estate Industry Leader for Central Europe.

In 2012, Central London was the most expensive city in Europe, with an average transaction price reaching almost EUR 10,000/m2. Price growth was also recorded in Outer London, reaching almost EUR 6,000/m2. In Paris, the average market prices of older apartments reached EUR 8,300/m2 and in the Paris region, EUR 5,500/m2. Munich, as the most expensive German city in terms of purchasing a residential property, reached an average price of EUR 5,000 /m2 in 2012. Furthermore, Munich and Moscow are two major cities where the prices exceed the national average the most (225%). Cities with average transaction prices of around EUR 4,000/ m2 include Moscow in Russia, Milan and Rome in Italy and Lyon and Marseilles in France.

On the other hand, the cheapest residential properties can be found in the CE region: in Budapest, with an average price of EUR 1,198/ m2 and in Warsaw, where an average price amounted to 1,656/ m2 in 2012.

In 2012, the highest year-on-year price growth was seen in Berlin (13%), London (12%) and Moscow (11%). On the other hand, Warsaw and Amsterdam experienced the greatest year-on-year price drop, amounting to 8% and 7%, respectively.

"The affordability of own housing in the monitored European countries differs significantly. While 2.2 average annual gross salaries are needed to purchase a new apartment in Denmark, 10.1 average annual gross salaries are required in Russia. A new dwelling in the Czech Republic can be purchased for approximately seven annual gross salaries; therefore, housing is more affordable here than in Hungary, Poland and Italy," said Diana Rádl Rogerová.

Development of Residential Markets in Selected European Countries

The indicator of housing development intensity on the residential market of the European Union decreased from 3.9 in 2011 to 3.3 completed apartments per 1,000 citizens in 2012. The largest number of completed apartments in the selected European countries in 2012 was seen in France and Austria.

"Housing development in the Czech Republic in 2012 amounted to almost 84% of the European Union average, which is a slight increase compared to previous years; however, this increase is mainly caused by the decline in residential construction in the EU. In absolute terms, residential construction in the Czech Republic reached 2.81 completed dwellings per 1,000 inhabitants in 2012," added Petr Hána, manager in the real estate industry line at Deloitte.

Housing development intensity in Italy, Poland, Belgium and the Netherlands in 2012 oscillated around the European average; in Denmark and in the UK, housing development in 2012 achieved almost similar values as in 2011. The lowest intensity of housing development in 2012 was found in Hungary (only 1.1 completed apartments per 1,000 citizens) and Germany (1.9 completed apartments per 1,000 citizens).

Housing Stock

In the comparison of the monitored countries, the lowest housing stock in 2012 was found in Poland (almost 25% below the European average). On the other hand, Spain reported the greatest housing stock re-calculated per 1,000 citizens in 2012 (more than 19% above the EU average), followed by France, which exceeds the European average by 12%. Of all compared countries, the highest proportion of privately-owned apartments could be found in Hungary and Spain. The highest proportion of rental housing was reported by Germany.

Housing Costs

The highest housing costs of the selected countries in 2012 were found in Denmark and the United Kingdom. The total housing costs in these countries exceeded the European Union average by 82% and 36%, respectively.

Compared to other EU member states, housing costs in the Czech Republic amounted to approximately 60% of the EU average, which ranks the Czech Republic among the countries with relatively-low housing costs.

As in 2011, the lowest housing costs of the selected countries were reported by Hungary and Poland. A comparison of average housing costs in Eastern and Western Europe shows that the average in Eastern Europe is considerably lower than in Western Europe. Nevertheless, a regular increase in housing costs in Eastern Europe can be expected in the future, predominantly due to the age of the housing stock.

For more information about the study entitled "Property Index", please visit


About Deloitte

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Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte's approximately 195,000 professionals are committed to becoming the standard of excellence.

© 2013 Deloitte Czech Republic

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Lukáš Kropík
Deloitte Czech Republic
Job Title:
PR Manager
+420 775 013 139


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