The demand for state and municipal apartments significantly overshadows the supply in the Czech Republic. There are approximately 144,000 such apartments currently rented. This situation is confirmed by experiences from regional cities that would like to expand their housing stock by purchasing or building new units. This indicates a shift from the trend in recent years, where municipalities often disposed of properties.
“Approximately 70% of municipalities consider their housing stock insufficient and are interested in construction. The demand is, therefore, enormous,” says Petr Waleczko, the Ministry of Local Development spokesperson. How the number of municipal apartments will evolve in the coming years largely depends on the municipalities themselves. The Ministry of Local Development will gradually offer tools within the Housing for Life reform to help municipalities actively solve their housing situation.
For example, Brno had over 10,000 applicants for municipal apartments in October. The South Moravian metropolis has about 28,000 apartments, most of which are filled. On the other hand, Plzen recorded 2,500 applicants as of October 1st, with the city managing 2,350 flats, which are typically occupied.
Rents in municipal apartments are typically much lower than in private apartments. For example, in Plzen, tenants pay CZK 92 per square meter for a standard municipal apartment, while the average, according to available real estate statistics, is about CZK 252 per square meter.
The city of Prague is also planning to mobilize construction.” “We have already identified locations where the city itself will build apartments. The largest project will be in Nové Dvory, where we want to build 2,500 apartments where up to 6,000 Prague residents could find a home. In total, we are preparing 11 projects in the capital city, handled by the Prague Development Compan”,” informed spokesperson Vít Hofman.