Deloitte Property Index 2026
Europe is finding stability. Affordable housing however remains a challenge.
The European residential market is entering a period of greater stability after several years marked by high inflation, rising interest rates and pronounced fluctuations in the housing market. Although economic conditions and the situation on real estate markets differ from country to country, this year's survey results show gradual stabilisation and a more predictable development across Europe. Yet a problem persists that links the vast majority of European markets: the supply of new flats is not keeping pace with demand.
The fifteenth edition of Deloitte Property Index, which charts the development of residential markets in 25 European countries, confirms that limited construction and a shortage of flats will continue to shape the nature of housing in Europe.
Deloitte Property Index 2026
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When even higher incomes are not enough. Prague is the second worst, Košice the fourth.
The affordability of owning a home continues to deteriorate in Europe. The number of cities where more than ten annual salaries are needed to buy a new flat increased year-on-year from 11 to 19. In many locations, property prices are rising faster than wages, pushing home ownership beyond the reach of an ever greater share of households.
This year, the worst performer is the Albanian city of Vlora, where more than 21 annual salaries are needed to purchase a new flat. Right behind it is Prague, where the average resident needs almost 17 gross annual wages. Third place was taken by Athens, and further down the ranking comes Košice, with Brno in fifth place.
Moreover, compared with last year, Prague has deteriorated and confirmed its position as one of the least affordable markets in Europe. Residents of Košice need to save more to afford a new home. While last year's Property Index showed that purchasing a new apartment required the equivalent of 170 monthly salaries, this year's edition indicates that they now need as many as 180.
“The Slovak residential market is currently characterised by a combination of three factors: strong housing demand, limited new construction and rapid price growth. Although Slovakia is not among the countries with the most expensive real estate in Europe, housing is becoming increasingly unaffordable for many households, as prices are rising faster than purchasing power. Increasing the supply of new housing remains the key challenge going forward,“
says Dagmar Yoder, Partner and Attorney, Deloitte Legal.
The most affordable cities
Among the cities monitored, the most affordable housing is offered by the Italian city of Turin, where on average 4.7 gross annual salaries are needed to purchase a new flat of 70 m². Next come the Norwegian city of Bergen and the Danish city of Odense, where a 4.9-fold annual wage is required. Other comparatively affordable cities include Trondheim, Manchester and Aarhus.
Affordability of new housing is not only a problem for Prague. In the European comparison, Košice, Brno, Ostrava and Banská Bystrica also rank among the less affordable cities. It is becoming clear that the pressure of high prices and insufficient supply is gradually spilling over also into regional centres. For young households and people interested in their first housing, entry into the market is thus increasingly difficult,
warns Petr Hána, Director, Real Estate and Construction at Deloitte Czech Republic.
How are the individual countries doing?
The most expensive country for purchasing new housing remains Luxembourg, where the average price reached 9,160 EUR per m². The next positions were occupied by the Czech Republic (5,412 EUR/m²), Germany (5,200 EUR/m²), Austria and the Netherlands. By contrast, Turkey and Serbia are in the best position.
From a European perspective today, the biggest problem is not the price level itself, but its mismatch with household incomes. The prices of new housing in the Czech Republic have reached the level of the most expensive Western European countries, but the incomes of domestic households are far from corresponding to them. The combination of strong demand, slow construction and still relatively expensive financing is therefore further worsening the affordability of owner-occupied housing. Without a more significant expansion of supply, no fundamental change can be expected,
summarizes Miroslav Linhart, Partner in Charge for Advisory at Deloitte Czech Republic and CE Real Estate Leader for Deloitte Central Europe.
Mortgage markets in Europe
The highest rates continue to be recorded in Hungary (9.08%), followed by Poland (6.91%), Romania (5.86%) and Norway (5.44%). The Czech Republic, with an average rate of 4.58%, is slightly above the European average.
By contrast, the lowest mortgage rates are in Bulgaria and Finland (2.77%), followed by Turkey (2.84%), Croatia (2.90%) and Spain (2.94%).
Past publications of the Real Estate Index
