Prague

1. Prague has a unique attraction known as the "John Lennon Wall," which started as a simple graffiti wall in the 1980s, symbolizing peace and freedom. It has since transformed into a vibrant canvas for artists and activists, continually changing with new artwork and messages. 2. The city is home to the world’s largest castle complex, Prague Castle, which dates back to the 9th century. It not only serves as the official residence of the President of the Czech Republic but also houses the stunning St. Vitus Cathedral and the Old Royal Palace. 3. Beneath the streets of Prague lies an extensive network of tunnels and cellars, some dating back to the medieval period. These underground structures were historically used for storage, shelter, and even as hiding places during times of conflict, adding an intriguing layer to the city’s rich history.

Prague’s housing market in 2025 is characterized by strong price growth, a chronic shortage of housing, and very low rental vacancy. Over 75% of Prague’s residents are homeowners or live in cooperative housing, while approximately 22–23% rent – reflecting the high ownership rate typical of Central Europe. Publicly owned housing (municipal or "public housing") accounts for less than 8% of Prague’s housing stock, while "social housing" is a smaller and more restricted subcategory aimed at those in acute need, such as the low-income or vulnerable; these terms are not synonymous in Prague. The median price to buy an apartment in Prague is about 131,000–139,900 CZK/sqm for existing flats and up to 163,000–164,000 CZK/sqm for new builds, equivalent to roughly 5,370–6,690 EUR/sqm (exchange rate: 1 EUR ≈ 24.2 CZK). Typical rental prices have risen sharply, now averaging 412 CZK/sqm/month (about 17 EUR/sqm/month). Central districts and neighborhoods like Žižkov command even higher rates. Affordable public housing remains scarce, and new initiatives to expand it, mainly for key public service employees, are underway but have limited current market impact. Public housing is managed locally and loosely regulated; many units go to non-vulnerable groups and are not reserved by strict social criteria. Social housing, on the other hand, targets specific vulnerable populations and is much smaller in scale. In both segments, unmet demand far exceeds supply.

Prague’s housing crisis in 2025 is marked by a persistent shortfall of nearly 90,000 units, having failed to meet the annual construction need of at least 10,000 flats since 2006. Despite a record 8,191 new flats approved in 2024, the supply lags well behind intensifying demand. Over the past decade, prices for new homes have soared by more than 160%. In the past year alone, prices rose between 7–16%, with new apartments now averaging around 5,400–6,900 euros per square meter. Rents follow a similar trend: average monthly rents in Prague hit 22,100 CZK, or about 912 euros, with central and desirable districts much higher and nearly zero vacancy for affordable rentals. This chronic shortage makes housing increasingly unaffordable, impacting not only low-income and vulnerable groups, but also the middle class and younger residents, such as recent graduates, public sector workers, and migrants—both domestic movers and international arrivals. Many middle-income households now struggle to find rental or purchase options that match their budgets, with the housing burden rising much faster than wages. Students and newcomers often end up in cramped, substandard, or distant accommodations. The lack of accessible and affordable housing is reshaping social patterns in Prague, pushing some to consider leaving the city or deferring life plans such as starting families or changing jobs.

Prague’s current city administration addresses affordable and sustainable housing with a multifaceted strategy focused on increasing supply, municipal ownership, and sustainability standards. The main targets communicated include constructing 9,000 new apartments annually and growing the city’s municipal housing stock to 35,000 apartments by 2030, with at least 5,000 reserved for social housing. Another recently announced goal is the development of 12,000 city apartments in major transit-connected areas such as Letňany, Nové Dvory, and Palmovka. Key programmes and activities include establishing the municipal developer company Pražská developerská společnost (PDS), which oversees over 800,000 sqm of city land and more than 50 projects, aiming to deliver 6,000–8,000 apartments over the coming decade. Affordable rental and cooperative housing, especially for essential workers like teachers and healthcare staff, are prioritized. Prague also promotes cooperative housing by supplying land and equity participation, which can reduce the entry cost by up to a third compared to market prices. Specific sustainability measures are integrated into new public projects, with energy efficiency and climate-resilient urban design as minimum standards. A prominent example is the €187.5 million partnership—co-financed by the European Investment Bank—to build over 700 energy-efficient rental apartments for low- and moderate-income public sector employees, scheduled for delivery by 2026. Regulation of short-term rentals and urban brownfield regeneration also accompany these initiatives to help stabilize housing costs and expand inclusive, sustainable living options.

Housing cooperatives play a traditional but relatively small role in Prague's housing landscape. Housing cooperatives and cooperative apartments account for a modest 3–5% of transactions in the Prague real estate market; most cooperative housing stock arose before 1990, and only about 3,500 new cooperative apartments have been built in Prague since 2010. The majority of Prague residents live in owner-occupied dwellings or traditional rental apartments, while cooperative housing remains a minor but stable segment. Recent years have seen growing interest in cooperative models as a response to high mortgage rates and soaring housing prices. Legislative changes are underway to allow tax deductions for interest paid on cooperative housing loans, aiming to equalize conditions with traditional mortgages and boost the appeal of cooperatives—especially for young families. Future reforms should also enable cooperative members to deduct their share of interest on the cooperative’s mortgage, further improving access. The city of Prague promotes cooperative housing within its broader affordability strategy by making city land and seed investment available to cooperative projects, potentially reducing entry costs by up to a third. Nevertheless, the city’s dominant tool remains municipal construction via its development company, with cooperative housing considered a complementary measure. Cooperative housing continues to face challenges in accessing credit, but ongoing policy innovations are intended to stimulate its growth and modernization.