Tuesday, 11 November 2025
Market value of Prague’s municipal development land reaches CZK 9.4 billion
The Prague Development Company (Pražská developerská společnost – PDS), the municipal organisation responsible for managing selected city-owned development sites, reports that the market value of its real estate portfolio has risen to CZK 9.409 billion as of 1 June 2025.
The valuation was conducted by Knight Frank and covers 757,000 sqm of land entrusted to PDS by the City of Prague, with most locations earmarked for future residential construction, including planned municipal rental housing. The updated valuation forms part of regular annual assessments, which are intended to support strategic decisions on asset management and financing structures for upcoming projects.
PDS has commissioned annual market valuations since 2021, when the portfolio was first assessed at CZK 2.939 billion. Subsequent valuations show continuous increases:
2022: CZK 4.298 billion
2023: CZK 7.123 billion
August 2024: CZK 8.843 billion
June 2025: CZK 9.409 billion
The increase is attributed both to active development preparation by PDS and to planning decisions made by the Prague City Council, particularly zoning changes approved in mid-2024 for the Nové Dvory and Palmovka areas, which expanded development potential on several sites.
One segment of the portfolio — ten locations included in the first valuation in 2021 — increased in value from CZK 2.993 billion to CZK 6.994 billion by 2024, representing a gain of more than CZK 4 billion.
Deputy Mayor for Spatial Development, Petr Hlaváček, stated that the city’s upcoming Metropolitan Plan aims to further strengthen the value and development possibilities of Prague’s municipal land. According to him, PDS is currently preparing projects that could deliver around 8,000 municipal apartments, while the new zoning plan identifies potential for roughly 50,000 apartments on municipal land in the longer term.
PDS director Petr Urbánek said that regular market valuations are a tool for transparent asset management and help the city select suitable financing models for planned projects. He noted that the increased valuation reflects proactive preparation of development sites, particularly in the Palmovka and Nové Dvory areas.
Prague’s Councillor for Property, Adam Zábranský, emphasised that the city’s current policy focuses on retaining ownership of municipal land rather than selling it to address budgetary pressures. Retaining ownership, he said, allows the city to control future development and use the land for municipal housing and other public-interest projects.
PDS was established in June 2020 as a contributory organisation of the City of Prague. It manages selected municipal land intended primarily for residential development, including rental housing for key worker groups and single parents. The organisation estimates that 6,000 to 8,000 new apartments could be developed on the entrusted land over the next 10–12 years.
