Prague wants to build 500 city apartments annually by 2030

Prague – The Prague City Hall aims to achieve the construction of at least 500 new municipal apartments annually in the metropolis by 2030. In total, at least 9,000 apartments should be added each year in the metropolis by the same year. This is evident from the housing strategy approved by the city councilors today. The councilors will discuss the strategy again next week, and if approved, they will follow up with more specific action plans for particular areas. Prague has been struggling with a housing crisis and continually rising housing prices in recent years.

"While the previous concept from 2004 emphasized the necessity of privatizing the housing stock, this strategy clearly states that we want to end privatization and, on the contrary, we want to construct municipal apartments to a greater extent," said councilor Adam Zábranský (Pirates), who is responsible for the municipal housing stock. Including the apartments from the city hall and city districts, there were about 31,500 apartments in 2019, and according to the strategy, there should be at least 35,000 by 2030. New municipal apartments have practically not been built in the last decade.

The city plans to strengthen its own construction and also collaborate with private entities, whether they are development companies, building cooperatives, or smaller civic associations, known in Germany as baugruppe. Deputy Mayor Petr Hlaváček (for TOP 09) stated that the city has established its Prague Development Company for these purposes, which is responsible for preparing city land for residential construction.

He also emphasized the necessity of cooperation with the private sector. "We are not afraid to address even conflictual matters and we are looking for some results," he said. The chairman of the housing committee Pavel Zelenka (Prague For Themselves) added that all housing plans must be long-term and should be worked on systematically.

According to the strategy, by 2030, socially excluded areas should completely disappear from the metropolis, and the number of children living long-term in shelters and boarding houses should drop to zero. The number of around 3,250 homeless people in 2019 is expected to decrease by a quarter, and from an estimated 9,800 households in acute housing distress in 2018, the city aims to reduce that number to a maximum of 5,000. The number of apartments for people in need, seniors, people with disabilities, or members of public service professions should also increase.

According to a 2018 analysis by KPMG, since 1991, 194,000 apartments have transitioned into the ownership of Prague, and the city stock has since decreased to less than one-fifth of that number due to privatizations. The lack of apartments and rising housing prices is one of the most discussed problems currently facing the metropolis.