Prague Named Europe's Most Unaffordable City for Housing

Housing prices in major European cities continue to rise steeply, with Prague residents facing the toughest challenges. Residents of the Czech capital working in the city and aiming to buy a 75-square-meter flat would need to spend 25.3 annual salaries to afford such property. This is the highest indicator among European capitals, as reported by The Mayor.

According to analysis conducted by Czech housing associations, housing prices in Prague have increased by 50% over the past few years. When considering the period since 2010, property values in the Czech capital have risen by 120%. Additionally, rental rates for housing have increased by 30% over the past decade and a half.

All of this renders' property in Prague unattainable for many city residents, as salaries have not risen fast enough to keep pace with the escalating property costs. In fact, the average salary in the Czech Republic has only increased by 21% over the same period.

Furthermore, this year's housing affordability situation is likely to worsen. Although mortgage rates have been decreasing in the Czech Republic since late 2023, analysts believe this will stimulate interest in property purchases, thus further driving up prices by approximately 5%.

Among other factors influencing housing costs in Prague, the study highlighted a consistently high demand for property, typical of major cities and capitals, as well as an energy crisis.

Czech property associations propose some solutions to address this situation. They note that the primary task for local policymakers is to prioritize expanding Prague's public housing stock, which currently accounts for only 5% of the city's housing stock.

Another recommendation is to implement progressive taxation for large property owners to curb price increases driven by speculation.

It's worth noting that The Gaze previously reported that the Czech Republic had exposed a network of Russian influence spreading pro-Russian propaganda in Europe and attempting to influence elections. Among them was the website "Voice of Europe," which disseminated pro-Russian narratives for a long time. Additionally, it was found that this site received funding directly from Russia.

The "Voice of Europe" portal was used to spread information aimed at persuading the European Union not to provide assistance to Ukraine in its confrontation against Russian aggression, which began in February 2022. On March 27, the Czech government included it in the sanctions list.