Prague has been dragging its feet on municipal housing construction for years. The city’s stock has remained at roughly 30,000 units, with new developments advancing only at a snail’s pace. With population growth on the horizon, however, the pressure is mounting to deliver a far greater supply of affordable homes – and soon.
The number of municipal flats in Prague has been at a standstill for years. Although the wave of privatisation during the 2010s has largely halted, preventing further declines in stock, the city is also making little headway in building new homes. According to a recent analysis by the Institute for Planning and Development from July 2025, Prague currently has just under 30,000 council flats — representing a mere 4.1% of the city’s total housing stock. On average, only about 60 new units are added each year.
Deputy Mayor for Urban Development, Petr Hlaváček, points to several projects led by the city’s development company. Around 450 flats are currently going through the approval process, including a development on Peroutkova Street comprising 60 units, for which planning permission is expected before the end of this year. Construction could begin in 2026.
Deputy Mayor for Social Affairs and Housing, Alexandra Udženija, also highlights these plans but identifies lengthy approval procedures as the biggest obstacle. To accelerate the creation of housing, the city is also purchasing properties that can be swiftly renovated. Many of these homes will be allocated to those in urgent need of accommodation.
Demand on the housing market is forecast to rise sharply in the years ahead. Projections suggest that up to 300,000 people may move to the capital over the coming decades. Deputy Mayor for Transport, Zdeněk Hřib, has called for a comprehensive housing initiative, including the construction of 200,000 new homes nationwide, lower housing costs for families, and a modernisation of the building and approval systems.
Current projects include the Skloněná complex with 152 flats, the conversion of the former Opatov hotel into 272 flats, the newly completed Sandra residential development with 174 flats, as well as smaller schemes on Moskevská and Korunovační Streets.
About half of all municipal housing is reserved for the most vulnerable groups — seniors, people with disabilities, and so-called key workers such as firefighters, police officers, teachers and healthcare staff. Rents average 157 Czech crowns per square metre, significantly below market rates.
Despite some progress, the situation remains tense. “The lack of availability and absence of new municipal housing worsen the housing crisis. This leaves the city without vital tools to protect people in precarious situations from homelessness or social exclusion,” warns Zdeňka Havlová from the Institute for Planning and Development.
