The CEE is still one of the cheapest regions in terms of property prices in Europe, according to the Deloitte Property Index 2013. Of the 15 European countries indexed, Hungary, Poland and the Czech Republic presented an overall decline in property prices, to match its either stable or decreasing number of initiated projects per 1,000 citizens in the residential market.
However, affordability of own housing also dropped in the three countries, despite decreases in residential property prices (-0.2 per cent) across the board. That left all three countries in the lower third for values in of the 15 countries, even after Western Europe experienced its biggest drops since 2012.
The three CEE also countries recorded significantly lower housing costs than that of the EU average –almost half for the Czech Republic, followed by 0.43 in Poland and by Hungary ranking third-last, before Israel and Russia, overall. There’s also been an increase in discounted prices in Poland and the Czech Republic, particularly in older dwellings, with Hungary’s being as much as 49 per cent cheaper.
Warsaw and Budapest were found to be the cheapest capitals, with the latter recording a significant price decrease below the EU average for new dwellings, while Prague reached more than 200 per cent of the Czech national average.