Tuesday, 24 March 2026
Prague’s municipal developer is continuing preparations for a series of affordable rental housing projects, with plans to submit permit applications for a further 1,500 apartments in 2026. The pipeline forms part of a broader programme that could result in building permits for around 3,000 apartments by 2028, subject to approvals.
The Prague Development Company (PDS) has been preparing projects for nearly six years. It is currently progressing the permitting process for an initial batch of 450 apartments, for which applications were submitted in June 2024 and remain under review. The company states that its activities to date have increased the value of municipal real estate assets under its management by CZK 4 billion.
Across its broader pipeline, PDS has received land from the City of Prague for the potential development of more than 8,000 apartments over the next 10 to 15 years. Of these, around 3,600 units have been approved by its investment committee, with approximately 3,000 endorsed by the Prague City Council. In parallel, the developer is preparing projects that include around 80,000 sqm of commercial space and associated civic infrastructure, including schools.
Petr Hlaváček, Deputy Mayor of Prague for Urban Development, said: “I am very pleased that PDS has succeeded in launching the preparation of affordable municipal housing and that another 1,500 units are set to be added this year to the first batch of 450 municipal apartments for which PDS has already applied for building permits. Together with the large-scale projects in Nové Dvory, if everything goes according to plan, the capital city could have permits for up to 3,000 new apartments by the end of 2028. Thanks to this, after 30 years, Prague will be able to begin rebuilding its housing stock in the form of new apartments intended for so-called priority professions (teachers, healthcare workers, and other municipal service employees) and for vulnerable groups (such as single parents and seniors living alone). In the next election term, the actual construction, long-term management, and other practical steps—such as specific criteria and the method of apartment allocation—will be addressed.”
Alexandra Udženija, Deputy Mayor of Prague for Social Affairs, Housing, and Health, added: “Housing affordability is one of the most pressing issues today, and we don’t just want to talk about it—we want to deliver concrete solutions. That is why, as early as this year, Prague will submit applications through PDS for permits for an additional 1,500 municipal apartments. However, the projects the city is preparing are not just about the apartments themselves—they are about creating fully-fledged urban neighborhoods. We want young families, seniors, people with disabilities, and professionals that Prague needs to find a home there. The projects will therefore also include schools and services—including social and health services. And, of course, parks and other public spaces where people can spend their free time. Our goal is to create places where people won’t just sleep, but where they can live well.”
The timeline for delivery remains dependent on the permitting process and regulatory environment. In Prague, the preparation and delivery of residential projects typically take between seven and ten years, with construction accounting for only a portion of that period. As a public entity, PDS operates under procurement rules that can extend preparation timelines compared to private developers. Ongoing changes to building legislation between 2024 and 2026 have also contributed to delays in project approvals.
PDS expects that the first building permits for the initial 450 apartments could be issued later this year. This would allow contractor selection to begin in 2026, with construction potentially starting in 2026 or 2027.
Petr Urbánek said: “Through PDS’s activities to date alone, the city’s real estate assets under its management have appreciated by 4 billion crowns. Their value will increase further with the start of the permitting process for 1,500 apartments this year and another 1,000 apartments in 2027–2028. The new political leadership following the fall municipal elections will be tasked with ensuring the construction and commissioning of nearly 3,000 apartments, for which PDS will secure building permits for the City of Prague over the next three years.”
