Cost of Living in Prague is Currently the Highest in Central and Eastern Europe

Cost of Living in Prague

Who wouldn’t like to live in the Czech capital? Well not everyone can.

Current data from the statistical portal shows that Praguers have the highest cost of living of all 50 major cities in Central and Eastern Europe.

They are mainly troubled by high housing costs and the highest food prices. By contrast, they can enjoy the largest purchasing power in the entire region.

The third most expensive city in the region is Brno and the fourth Olomouc. Only the Slovak capital Bratislava came in second.

The main problem of people looking for housing in Prague is the rising rents. According to the Numbeo portal, which has been monitoring and comparing statistical data in 237 European cities for a long time, renting a three-room apartment in the centre of Prague averages CZK 31,655 per month, while outside the centre tenants pay an average of CZK 23,091.

This is 13.4 % more than in Bratislava city centre and 11.4 % more outside. The inhabitants of Prague will also pay for energy in the apartment which are 10% more than in the Slovak capital.

However, it can rely on the highest average salary in the region, which according to Numbeo after-tax reaches almost 36,350 crowns.

The prices of new and old flats on the Prague market have been rising steadily for several years, and according to our statistics, prices of new flats have almost doubled in five years.

Rents, which are also growing significantly, are reacting to these prices increases but with a slight delay. The rise in rents was temporarily slowed down only by the re-launch of hundreds of flats on the rental market, which used to be used for short-term rentals, but lost tourists from abroad due to coronavirus-paralyzed tourism.

However, Prague is not the only city in the Czech Republic that faces high living costs. This is evidenced by the location of Brno and Olomouc at the top of the Central and Eastern European rankings.

Consumer prices, including rent, are 9.32% lower in the largest Moravian city than in Prague, where, in contrast, they have 8.83% higher purchasing power.

In Olomouc, consumer prices, including rent, are 17.85% lower than in the capital, but the people of Olomouc have 14.77% lower purchasing power than them.

It can be expected that Czech cities will continue to face high costs of living for a long time to come. Rising energy, record high inflation and the generally poor availability of new and old flats on the real estate market leading to rising prices will burden family budgets more and more.

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