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Warsaw ranks among least affordable cities for housing in the EU

24.10.2024 13:30
Warsaw has emerged as one of the most inaccessible cities in the European Union when it comes to housing affordability, according to the Gazeta Wyborcza daily.
Illustrative photo.
Illustrative photo.Martyn Jandula/Shutterstock

The newspaper highlighted the staggering prices of small apartments, often under 50 square meters, that sell for over a million Polish złotys (EUR 230,390), and noted that these are not luxury properties but standard units in residential blocks.

The data comes from a report titled "A Home for Everyone: Access to Affordable and High-Quality Housing," prepared by the European Spatial Planning Observation Network (ESPON). The study analyzed housing purchase and rental prices relative to average incomes across several countries.

Soaring prices and stretched budgets

In Warsaw, the average price per square meter has reached nearly PLN 18,000 (EUR 4,147). Listings from areas such as Miasteczko Wilanów, Mokotów, and the city center often feature regular apartments priced above a million Polish złotys for less than 50 square meters. "Buying a reasonably located apartment, which isn't a cramped space, has become out of reach even for those earning decent wages," the article stated.

Citing the ESPON report, Gazeta Wyborcza noted that, on average, residents in Warsaw would need to save 40% of their annual income for 20 to 35 years to afford a 100-square-meter apartment, the benchmark used in the study.

Housing affordability across Europe

In comparison, housing appears more attainable in several other European cities. Residents of Benelux countries, Madrid, Oslo, and Copenhagen, for example, would need to save for 15 to 25 years, while those in Dublin, Stockholm, and Helsinki might need 10 to 15 years. The report also noted that the situation is similarly difficult, if not worse, in cities like Vilnius, Budapest, and Riga.

Rental market equally challenging

The situation is not much better for renters. Spending 40% of an average annual income would allow Warsaw residents to rent an apartment ranging between 30 and 80 square meters. This places Warsaw on par with cities like Paris, Lisbon, Madrid, and Berlin, where rent is equally high. On the other hand, renting is more affordable in cities such as Bratislava, Prague, Vienna, Oslo, Stockholm, Copenhagen, Helsinki, and Rome.

(jh)

Source: Gazeta Wyborcza, PAP