Apr 15, 2024

City Plans 8,000 Affordable Apartments to Fight Housing Crisis

Prague faces a significant challenge: skyrocketing apartment prices. The cost of living is impacting even the middle class. Apartment prices have jumped over 50% in just five years.

Additionally, a third of Prague residents rely on rentals, which have also seen a 30% increase. This, coupled with a slowdown in construction due to recession, has created a critical situation.

To address this, the Prague Development Company (PDS), a contributory organization of the capital city, plans to build up to 8,000 new apartments within the next 10 years.

“Prague’s housing prices are comparable to Western Europe, but salaries here are much lower,” emphasizes Petr Hlaváček, deputy mayor for territorial development. “This creates tension within our society.” He adds, “We have the space for up to 80,000 new apartments. We can achieve this by revising spatial planning regulations.”

The PDS currently has 50 projects in the pipeline, encompassing over 8,000 apartments spread across more than 800,000 square meters of land. These projects are expected to be completed within the next decade.

“Many projects have already received approval, particularly those covering around 200,000 square meters designated for further investment preparation,” says Petr Urbánek, director of the Prague Development Company. “Others are still under design, and we anticipate some will have building permits by next year.” The initial construction projects are located in Krč, Zlíchov, and Libně.

The first project slated for completion in 2026 is the Jalový Dvůr housing complex in Krč, offering 40 apartments. “The first stage of the garden city project in Dolní Počernice will create 300 apartments. We expect the building permit within a year and a half,” explains Petr Urbánek.

Another initiative involves transforming the Opatov Hotel into roughly 300 new apartments. “Every apartment counts,” says Alexandra Udženija, deputy mayor for social affairs and housing. “I’m thrilled to see unused spaces being repurposed into new housing.”

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A new neighborhood for 5,000 residents is planned for a 15-hectare site near the future Nové Dvory metro station D. Construction is expected to begin in 2029, subject to permitting. “We’re currently preparing the area. The project became more affordable after acquiring the post office and revising the documentation,” explains Petr Hlaváček.

Despite rising construction costs, recent data (February 2024) shows an increase in Prague’s apartment construction. Over 200 apartments entered the construction phase, primarily in Prague 8, 15, and 18. Statistics also reveal over 6,000 apartments were completed in these areas.

The new 2023 Property Index analysis reveals that Prague ranks alongside Amsterdam and Bratislava as European capitals requiring the highest number of annual salaries to purchase an apartment. This initiative by the PDS offers a glimmer of hope for Prague residents struggling with the housing crisis.

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