If it seems to you that owning a home in Slovakia has become a luxury that’s almost impossible for the average person to afford, the latest data from an international survey of European real estate markets fully confirms this. Market analysis shows that buying square meters here is significantly more difficult than in many Western metropolises. An analytical review by Denník N provides more details on the market situation.
How Slovak regions compare on the European map
Deloitte’s international comparative Property Index assesses the affordability of new housing based on the number of average annual pre-tax salaries required to purchase an apartment. Based on this metric, several Slovak cities have ended up on the list of Europe’s most expensive locations.
The situation in the regions is as follows:
- Košice: 14.2 times the annual salary. The city ranks fourth on the European “worst” list, ahead of many Western capitals.
- Brno: 14.0 annual salaries (for comparison with the neighboring region).
- Banská Bystrica: 12.8 times the annual salary.
- Bratislava: 12.3 times the annual salary.
By comparison, in Inner London, this figure is 10.8 times the annual salary, and in Rotterdam, it is 10.1. This means that, statistically speaking, it is much harder for a local resident to buy a home in Košice or Banská Bystrica than it is for a resident of the British capital.
Why has housing become so unaffordable?
The main reason for this gap is that the rate of growth in real estate prices in the country significantly outpaces wage growth. Demand for new houses and apartments remains high, while the construction of new residential projects is being held back by high mortgage interest rates, expensive building materials, and bureaucratic hurdles.
If you’re planning to find a place to live in the country, it’s also helpful to check out the “Housing” section, which offers basic advice on renting and buying real estate.
Who Tops the European “Worst-Ranked” List
Among the European cities analyzed, the most challenging situation for buying a new home is in Amsterdam, where buyers will have to pay the equivalent of 15.4 times the average annual salary. Athens ranks second with a figure of 15.3, followed by Prague (15.0).
At the opposite end of the scale are Europe’s most affordable cities. For example, in Odense, Denmark, or Turin, Italy, saving about 4.9 times the annual salary is enough to buy a standard apartment.
Source: e.dennikn.sk
