Prague approves construction of new affordable-housing apartments in Smíchov

A total of 266 new middle-income apartments are set to be constructed on Radlická street in Smíchov as Prague City Council members have approved a public contract under the city's Affordable Cooperative Housing project.

According to the project's website, these flats will cost up to thirty percent less than a comparably-sized Prague apartment thanks to lower development costs and use of city-owned land.

In an example quoted by the Affordable Cooperative Housing project, while the average cost of a Prague apartment is around 105,561 crowns per square meter, these new flats will cost approximately 73,893 crowns per square meter.

"Yesterday, we at the council approved the construction of flats on Radlická street as part of the Affordable Cooperative Housing project," Hana Kordová Marvanová, Prague councilor for housing legislation and support, states in a press release.

"I am glad that after several years of hard work in negotiations and preparations, the project is finally entering the implementation phase. A partner will be chosen in the coming months and I believe that nothing will stand in the way of the construction of flats for Praguers," adds Councilor Kordová Marvanová.

"This much-needed alternative for the middle class will be the first to be implemented in cooperation with the capital city of Prague and the city district of Prague 5. Some other city districts are already ready to join the project as well.”

The new apartments are intended for long-term residents of the city and especially middle-income families. Criteria for joining the project includes long-term residence in Prague, and the absence of other housing.

A certain percentage of applicants will be selected by the city on an individual basis, with some groups (police, firefighters, teachers, disadvantaged families) given preference.

The new project aims to help alleviate Prague's housing crisis by providing accommodation opportunities for long-term residents, and especially families, as opposed to real estate for speculative investors.

"Affordable and quality housing is one of the basic conditions for starting and running a family," says Prague 5 Mayor Renáta Zajíčková.

"Prague 5 has prepared an area that will be equipped with the necessary infrastructure, facilities for preschoolers and schoolchildren, and other services. I believe that together we will set a certain standard for other similar projects in the metropolis."

The block of flats on Radlická street in Prague 5 will be the first in Prague to go up under the city's Affordable Cooperative Housing project, but hopefully not the last. Czech banks are also eager to get involved with the concept.

"We believe that the concept of affordable cooperative housing will provide housing opportunities for a significantly wider range of people who would not otherwise obtain a mortgage and for whom it would not be easy to finance rental housing," says Pavel Hroch, ČSOB's Regional Director of Corporate Banking.

"We believe that this is one of the important tools for solving the housing crisis. Affordable cooperative housing with the support of the city is something that we consider to be promising from the bank's point of view and desirable for the market."

More information about Prague's Affordable Cooperative Housing project can be found through the city's official website.