Czechs save for a new apartment in 7 years, Danes in 2 years

Prague - Czechs would save for a new apartment of 70 m² for about seven years if they set aside their entire gross salary. To acquire such an apartment, it would be necessary to have 7.2 times the average annual gross salary. This is according to a study by Deloitte titled Property Index, which analyzed the development of property prices in 14 countries in Europe, Russia, and Israel. According to this study, the prices of new apartments in the Czech Republic average around 32,556 crowns per square meter, which is the highest in the region.
    "The availability of homeownership varies significantly among the monitored countries. While in Denmark, it takes 2.1 times the average annual gross income to acquire new residential housing, in the Czech Republic it is already 7.2 times, similar to Poland and Hungary with 7.4 times. To acquire a new apartment in Israel, one would even need to account for 12 annual salaries," stated Petr Hána, manager of Deloitte's real estate and construction sector.
    The company chose to compare gross salaries because work taxation varies in each country, which would distort the statistics.
    The average housing stock in the European Union slightly increased last year to nearly 476 apartments per 1,000 inhabitants. Spain has the largest housing stock among the compared countries (18% above the EU average), while Poland has the smallest (25% below the average).
    The most new apartments were built last year in Russia, where 6.5 apartments were completed per 1,000 inhabitants. The least new apartments were built last year in Hungary and Spain, where the real estate crisis is still lingering.
    "In terms of housing stock size indicators and housing construction intensity, the Czech Republic reaches values close to the European average. In 2013, it was 96%. From this perspective, there are not many reasons for a significant increase in the housing stock. Rather, a gradual renewal can be expected," added Pavel Novák, senior consultant at Deloitte for real estate and construction.