The second city district of Prague has unveiled a groundbreaking approach to rental housing by offering apartments for modification through auctions. This innovative initiative aims to streamline the process of circulating municipal flats while saving time and money for both the city and interested parties.

The pilot project will begin with an auction for the first five units requiring repairs in Nové Město and Nusle. The public electronic auction, scheduled for June 19, will be a single-round competition, with a starting price of 158 Czech crowns per square meter set for all units.

Jitka Urbánková, Prague 2 councilor for housing issues, explained the rationale behind the project, stating, “At this time, we are releasing the first five apartments to auction as part of a pilot project. Interested parties will be able to modify their future apartment on their own. I expect that such tenants will live in our apartments for a long time, so they will also be interested in caring for and maintaining the house with others.”

The apartments offered in the auction will be in a condition that requires no intervention in the engineering networks. The electrical pipelines, domestic water, and waste pipelines will already be prepared. A list of necessary modifications will be provided before the auction, along with the expected amount of additional investment. The tenant will then have the opportunity to negotiate the specific specifications of the apartment modifications with the apartment manager before signing the lease agreement.

The success of the initial auction and the satisfaction of tenants and the city will determine whether more vacant apartment units will be made available through this system. Additionally, the city district expects to save both time and money that would have otherwise been invested in apartment repairs.

Apartment auctions have gained popularity in Prague’s Na Dvojce area, where the city hall has been offering vacant apartments through this method for several years. The bidding system allows interested parties to directly influence the final rent price. Thanks to electronic auctions, interested parties can participate without being physically present, as the platform provides a pleasant presentation of the properties through photos and virtual 3D tours.

Prague 2 is renowned as one of the most desirable residential areas in the city. Responding to the overwhelming demand from tenants, the city hall plans to increase the frequency of auctions to cater to this demand more effectively.

Article byPrague Forum