The Czech Republic is facing a significant disparity between the demand for state and municipal apartments and the available supply, with approximately 144,000 such units currently rented. This shift represents a departure from recent years, where municipalities often divested properties. Experiences from regional cities echo the overwhelming demand, prompting interest in expanding housing stocks through new constructions or acquisitions.

Petr Waleczko, spokesperson for the Ministry of Local Development, highlights that about 70% of municipalities perceive their housing stock as inadequate and express interest in construction initiatives. The demand is substantial, signaling a departure from previous trends. The Ministry of Local Development aims to provide tools, gradually introducing them through the Housing for Life reform, to assist municipalities in actively addressing their housing challenges.

Cities such as Brno and Plzen underscore the intensified demand for municipal apartments. Brno, with over 10,000 applicants in October, grapples with a shortage despite its 28,000 apartments. Plzen recorded 2,500 applicants by October 1st, managing 2,350 flats that are typically occupied.

Municipal apartments offer a more affordable housing option compared to private units. For instance, in Plzen, tenants pay CZK 92 per square meter for a standard municipal apartment, significantly lower than the average of CZK 252 per square meter in private rentals, according to available real estate statistics.

The city of Prague is also gearing up for increased construction efforts to address the housing demand. Vít Hofman, spokesperson for the city, revealed plans to build apartments at identified locations, with the largest project in Nové Dvory aiming for 2,500 units, providing homes for up to 6,000 Prague residents. In total, 11 projects are in preparation under the management of the Prague Development Company.

Article by Prague Forum