News Article Czech Republic Dostupné bydlení Geosan Prague rental residential
by Property Forum | Residential

The Prague 14 municipal district has managed to start construction on a 30-year neglected area near the Černý Most metro station. It was only possible when the municipality took over the area affected and was able to improve it. This finally began to happen in mid-September this year, when the construction of a new modern multifunctional building started on the site. What is new is that the Prague 14 councillors at their December meeting approved the conclusion of a contract for the construction and financing of the building with the company Dostupné bydlení České spořitelny (Affordable Housing Česká spořitelna, DBČS). The latter will invest CZK 200 million (€8.156 million) in the project. The total cost of the project is estimated at €25.7 million.

In addition to 65 residential units of various sizes, the residential building will also house a café, a modern branch of the Prague City Library and a contact point for the office. Among other things, this means that people will no longer have to go to the town hall or post office to visit Czech Point, for example. The construction will be provided by Geosan Group. "The flats will then be offered primarily to people in the so-called preferred professions - for example, police officers, firefighters, doctors, paramedics or teachers. I am glad that we have managed to find a strong partner for this project at a time of rapid housing price growth. We believe that the new project at Černý Most will send a positive signal to the whole of Prague in this respect," said Jiří Zajac, Mayor of Prague 14.

The municipality is establishing cooperation with Dostupné bydlení ČS based on its success in the open concession procedure. The company will become a half-owner of the residential area in the building. The amount of rent and the actual occupation of the flats by tenants will remain in the hands of the municipal district. In addition to the external partner, the City Hall will also help finance the project. Prague. The subsidy from it currently amounts to CZK 130 million (€5.3 million), but the municipal district expects further negotiations regarding a possible increase in financial support. The total estimated cost of the project is CZK 630 million (€25.7 million). The house should be ready in two years.

Mayor Zajac believes that the dismal surroundings of the metro station will be uplifted by the modern construction. "The building is being constructed in a "design and build" mode, which means that the house is being designed and built by a single contractor resulting from an open tender. This system has several advantages. Just the fact that the contractor is not building something that someone else has prepared for him - he knows the project very well, and the risk of mistakes is reduced," said Mayor Zajac.

In its May report, the European Commission set out the introduction of housing affordability reform as one of the priorities for the Czech Republic. There are currently 36 applicants per one offer of rental housing. The average price for rental housing in the Czech Republic is currently 293 CZK/m2 (€11. 95/sqm), in Prague, it will rise to 407 CZK/m2 (€16. 6/sqm) in October 2023.

"It is not often that a municipality itself realizes the construction of affordable housing as we will witness in Prague 14. We are glad that we can help the municipality with the construction of this interesting project. It can become an example for other municipalities how to solve the increasingly pressing problem of affordable housing, which has already become one of the priority political topics," emphasizes Marek Blaha, Chairman of the Board of Directors of Dostupné bydlení ČS.