Prague City Plans 50,000 New Flats in Letňany to Tackle Crisis

A major new residential district is set to rise in Letňany, Prague, with the potential to deliver up to 50,000 apartments.

The project, announced on Tuesday by Deputy Mayor Alexandra Udženija (ODS), is positioned as a key part of the city’s strategy to address its growing housing crisis. City officials insist that the city—not private developers—must take charge of the development.

Prague faces a severe housing shortage, and according to Udženija, at least 9,000 new apartments should be constructed annually to meet demand.

Yet progress remains slow, hampered by bureaucratic delays and a city administration still dependent on national government approval for housing initiatives.

“We are trying to act as quickly as possible,” said Adam Zábranský (Pirates), the city’s housing councilor. He indicated that ongoing talks with the state could result in a conditional land transfer, with the expectation that a portion of the housing stock would be reserved for affordable and social rentals.

Most of the land in Letňany targeted for this development is state-owned, but key private stakeholders, including major landholders like PPF and Kaprain, also control substantial plots. A deal between the city and the state is therefore critical to move the project forward.

Deputy Mayor for Strategic and Territorial Development Petr Hlaváček, who also founded the Prague Development Company (PDS), said the Letňany site could become a model for sustainable urban development, citing Denmark as an inspiration. He proposed using materials such as wood or silicate and emphasized the need for efficient production processes, avoiding the return to prefabricated construction.

The Prague Development Company is already preparing smaller-scale projects, aiming to build 6,000 to 8,000 apartments across 60 sites over the next ten years. These developments will include kindergartens, schools, and healthcare facilities.

In 2024, the company applied for building permits for 450 units, with plans to apply for another 1,400 apartments between 2025 and 2026.

While Prague can fund smaller developments from its municipal budget, large-scale projects like Letňany will require long-term financing strategies and external partnerships. Hlaváček mentioned cooperation with institutions such as the European Investment Bank as one possible route.

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