CEE housing markets face rising prices and affordability pressures, Deloitte report finds

Central and Eastern Europe’s residential property markets are experiencing sharp price growth and affordability challenges, according to Deloitte’s Property Index 2025. While the region remains more affordable than much of Western Europe, housing costs in major CEE cities are climbing at some of the fastest rates across the continent.

In Warsaw, average prices now reach up to €3,600 per square metre, with Kraków and Poznań ranging between €2,500 and €3,500. Prague remains the most expensive CEE capital, with new flats averaging €5,900 per square metre, followed by Brno (€5,100) and Ostrava (€3,600) . Bratislava averages €4,150, though central districts like Bratislava I exceed €5,900. In Budapest, prices average €4,300, with prime locations reaching €8,000, while secondary cities like Győr and Debrecen remain below €3,500. Romania shows greater disparity: Cluj-Napoca leads with €2,500–3,000, while Bucharest and Brașov remain more affordable at €1,500–2,000.

Affordability has become a pressing concern. Prague ranks among the least affordable cities in Europe, with buyers needing the equivalent of 15 average gross annual salaries to purchase a 70 sqm apartment. Other CEE cities are also stretched: Brno requires 14 annual salaries, Košice 14.2, and Bratislava 12.3. By contrast, Katowice is more accessible at 7.1 salaries, close to Western European regional cities such as Manchester (5.3) or Aarhus (5.8) .

Construction activity highlights the imbalance between supply and demand. Poland stood out in 2024 with 199,900 completed dwellings—the third highest in Europe after Turkey and Germany. Yet despite this strong pipeline, demand continues to outpace supply, keeping prices elevated. Other CEE markets lag behind: Hungary completed just 13,200 new dwellings, while Slovakia added 17,600, both among the lowest in Europe relative to population size .

Mortgage conditions remain a key factor shaping demand. The Czech National Bank has lowered its base rate to 3.5%, with inflation falling below 2%, while the European Central Bank cut its rate to 2.25%. These moves could improve affordability if passed through to mortgage lending, though banks remain cautious. Deloitte notes that stricter lending standards and high construction costs continue to constrain buyers .

The report underlines that while CEE property markets remain attractive to investors thanks to strong urbanisation, industrial expansion, and relative affordability, the affordability gap for local households is widening. Unless new housing supply and wage growth keep pace, access to homeownership in the region’s capitals will become increasingly difficult.