EU approves EUR 90 million to boost affordable housing in Czechia

The European Commission has approved a USD 90 million program to support affordable rental housing in the Czech Republic, funded through the Recovery and Resilience Facility (RRF). The funds could help create or renovate at least 800 apartments. This initiative follows the State Investment Support Fund’s existing affordable housing program, which has CZK 7 billion allocated through 2026.

The program aims to address housing shortages by providing affordable rent for households with low incomes or young families. It will offer preferential loans for projects costing more than CZK 250 million, with up to 80 percent of the costs covered, and an interest rate of 1-2 percent per year. The National Development Bank has expressed interest in financing around 20 projects worth about CZK 10 billion.

Minister for Regional Development Petr Kulhánek emphasized the importance of long-term investments in affordable housing, noting, “The notification process is demanding, but we have succeeded in doing it for the second time in the last year. Our goal is to start a regular and long-term predictable flow of investments in affordable housing.”

In November, the Ministry of Housing and Urban Affairs announced an agreement for the construction of over 3,500 affordable apartments by 2026, funded by EU recovery funds. The Czech government plans to gradually increase investments in affordable housing, aiming to reach CZK 10 billion annually.

Last year, the availability and quality of housing in the Czech Republic ranked among the worst in the EU, with rising housing costs and insufficient construction contributing to the country’s 23rd-place ranking in last year's Prosperity and Financial Health Index. The government hopes this new funding will improve the situation.