News Article Česká spořitelna Czech Republic Erste FINEP Prague rent rental residential
by Vera Tumova | Residential

Česká spořitelna has started to build affordable apartments with low rents for employees that cities lack. The first such apartment buildings with 254 flats are already taking shape in Prague 9, built by a subsidiary of the bank DBČS with the developer Finep for CZK 1 billion (€42.7 million). The bank plans to build a total of 1,000 flats by 2026. The bank also wants to cooperate with the Czech government to finance more flats through EU funds and loans from the European Investment Bank, DBČS subsidiary CEO Marek Blaha told the press.

Affordable Housing of Česká spořitelna (DBČS), a subsidiary of Česká spořitelna, wants to help solve the systemic problem of lack of housing at affordable rents in the Czech Republic. This company will primarily act as an investor in land and the construction of apartment buildings. However, the tenants for the flats will be selected by city and town councils or hospitals. The flats should be for employees from the most needed professions such as health workers, teachers or police officers.

The first DBČS project Prosek Park with small starter rental flats is already under construction in Prague 9. It includes a total of 254 flats with a size of 1 or 2 bedrooms (1KK or 2KK) and a total area of 12,324 sqm. The six-storey buildings are being built by the developer Finep, from which Česká spořitelna has already bought the project. The first tenants of the DBČS project will be medical staff from the Motol University Hospital. According to Marek Blaha, the bank will not be responsible for the development and management activities and the housing operation, as this will be handled by external companies. According to Blaha, the first flats of the project in Prague 9 should be completed in 2024, while the next flats will be built in Prague 11 and in the Vysočina region.

Marek Blaha

Marek Blaha

Dostupné bydlení České Spořitelny

Marek Blaha became CEO of the new subsidiary of Česká spořitelna - Affordable Housing ČS in January 2022. The aim of the new company is to create a housing stock of thousands of units with rent-stable and affordable housing, following the example of the Vienna-based Erste concept. Marek has held a top management position at Česká spořitelna since 2016, when he became head of retail distribution. He was responsible for the areas of private banking, retail, mortgage centers, call centres, small corporate clients, and external partner relationships. He was responsible for five thousand people and CZK 26bn in revenue. More »

"Recently, it has started to happen that police officers or health workers prefer to head to Moravia, where, with the same table salary, they have a much lower living cost than in Prague," said Prague 9 Mayor Tomáš Portlík. This is exactly what Portlík believes the new project that DBČS is launching on the affordable rental housing market could help to solve.

DBČS will be able to offer 20 percent lower rents for five-year contracts thanks to large-scale purchases, high occupancy rates and a long-term investment horizon of 40 years. In addition, DBČS intends to save future tenants on energy and water costs, as it is also cooperating on the project with the University Centre for Energy Efficient Buildings of the CTU (UCEEB CTU). In the project, we will address energy efficiency and rainwater management, which will save future tenants money on energy and water bills," says Antonín Lupíšek, Director of Science and Research at UCEEB CTU. Česká spořitelna was inspired by its parent company Erste Bank, which has been providing affordable housing in 14,000 apartments since 1957 and is now building another 21,000 apartments in this way.