Prague
Prague

Prague

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Population (AI)

1,308,632

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Last edited
Oct 15, 2024 2:43 PM
Category
CapitalPrio-25Prio-10
Local programs

The city of Prague has set ambitious targets to address its critical housing affordability crisis. Key objectives include: 1. **Increasing Affordable Housing Supply**: The city aims to build 9,000 new apartments annually, with a goal of owning at least 35,000 apartments by 2030, including 5,000 for social housing. 2. **Sustainable Housing Development**: The focus is on constructing affordable and quality housing, primarily on unused brownfield sites and suitable municipal land, to ensure sustainable and inclusive urban development. 3. **Cooperative Housing Initiatives**: Prague is promoting cooperative housing projects, where the city provides land to cooperatives based on surface rights or leases. This approach aims to offer affordable housing options to those who cannot afford current market prices but do not qualify for social housing. 4. **Regulatory and Financial Measures**: The city is exploring rent control mechanisms, progressive taxation on large property owners and vacant apartments, and expanding municipal housing stock to address affordability issues. 5. **Integration with National Programs**: Local initiatives are complemented by national policies, such as direct and indirect policy instruments to shape a more sustainable and inclusive urban paradigm, as recommended by the OECD. These efforts aim to make housing more affordable and sustainable in Prague, addressing the needs of various population groups and fostering a more equitable urban environment.

Housing Market

**Summary of Prague's Housing Market:** - **Market Trends:** The housing market in Prague is experiencing a resurgence, with prices rising due to increased demand and lower mortgage rates. The average price per square meter for new apartments in Prague was CZK 152,644 in Q1 2024. The most expensive properties are in Prague 1 and 8, with prices averaging CZK 469,000 and 409,000 per square meter, respectively. - **Rental Market:** Rents in Prague have increased, with smaller apartments renting faster. The average rent for a 60-79 sqm apartment is CZK 23,214 per month. - **Ownership and Rental:** Specific figures on the total number of housing units, rental rates, and ownership percentages are not provided in the available sources. However, it is noted that owning a property is still more expensive than renting, but falling interest rates may make buying more attractive. - **Public, Social, and Cooperative Housing:** The sources do not provide detailed information on the roles and shares of public, social, and cooperative housing in Prague. However, it is mentioned that Prague has the least affordable housing in Europe, with the average price of an apartment being 15 annual salaries. - **Market Outlook:** Experts expect further moderate price growth due to stabilizing inflation and falling interest rates. The market is expected to continue to be influenced by interest rates and material prices.

Further Actors?

**Key Conversation Partners and Collaborators for Affordable and Sustainable Housing in Prague:** 1. **NGOs and Non-Profit Organizations:** - **Arnika**: Co-authored a study on Prague's housing affordability crisis, emphasizing the need for political intervention and proposing solutions like expanding municipal housing and rent regulation. - **Platform for Social Housing**: Highlighted the disproportionate impact of the housing crisis on vulnerable populations and advocated for affordable housing solutions. - **Tenants’ Union**: Participated in the study on housing affordability, emphasizing the need for rent control and progressive taxation on investment flats. 2. **Local Administration and Political Parties:** - **Prague City Council**: Developed a strategic plan to increase affordable housing, including the construction of 9,000 new flats annually and expanding municipal housing stock to 35,000 by 2030. - **Hana Kordová Marvanová**: City Councilwoman responsible for housing support, emphasizing the need for affordable cooperative housing projects. 3. **Real Estate Developers and Architecture Firms:** - **YIT Česká republika**: Focuses on healthy and sustainable housing, developing eco-friendly apartments and innovative construction projects. 4. **Housing Cooperatives:** - **Cooperative Housing Projects**: Supported by the city, aiming to provide affordable housing options, such as the project near Radlická Street in Prague 5. 5. **Impact Investors and Innovative Solutions:** - **Karmod**: Offers modular and prefab construction solutions for affordable social housing, emphasizing quality, sustainability, and community building. These entities represent a diverse range of stakeholders who could contribute to the mission of building more affordable and sustainable housing in Prague.

Cooperatives

In Prague, housing cooperatives play a significant role in addressing the city's housing crisis by providing affordable housing options for middle-income residents. These cooperatives involve collaborative ownership of houses, where members collectively develop, finance, maintain, and operate multi-apartment buildings. The city has a long tradition of housing cooperatives, dating back to the 19th century, and currently, there are hundreds of housing associations in the Czech Republic, making it one of the European countries with the largest number of cooperative apartments. Key aspects of Prague's cooperative housing include: - **Affordability**: Members pay a one-time entry fee and monthly contributions that cover apartment costs and utility bills. - **City Support**: Prague provides land to cooperatives on a building right or lease basis and retains about a third of the apartments for needy groups. - **Market Share**: Cooperative apartments formed a 40% stake in newly built prefabricated houses in the 1980s and 1990s. - **New Projects**: Recent initiatives include the MOBA Housing Network, a pioneering cooperative approach in Central-Eastern and South-Eastern Europe, and projects by FINEP, offering new cooperative flats in attractive locations. - **Lighthouse Projects**: The first cooperative housing project supported by the city is being realized near Radlická Street, in Prague 5, with 221 to 266 flats. - **Financial Support**: While there are no current special programs supporting cooperative housing from the State Investment Support Fund, the city promotes cooperative housing through land provision and strategic partnerships.