Prague builds 50,000 apartments in 10 years, but housing shortage persists

More than 50,000 new apartments have been completed in Prague between 2014 and the end of 2024, with Prague 9 leading in terms of development activity. Despite this construction, the pace of housing delivery has not kept up with population growth, and demand continues to outstrip supply.

During the past ten years, Prague 9 accounted for nearly one-quarter of all new apartments built, followed by Prague 4, 5, and 10, each contributing around 16 percent. Together, these four districts made up almost three-quarters of all new housing in the capital. Their prominence in development is due largely to the availability of large brownfield and redevelopment sites, which offer opportunities for the creation of new residential areas.

Central Group, the Czech Republic’s largest residential developer, completed nearly 8,000 of the 50,000 apartments delivered over the last decade, meaning one in every six new units in Prague was built by the company. Since its founding, Central Group has constructed over 20,000 apartments. Currently, the company has around 3,000 apartments under construction, valued at CZK 25 billion, and is preparing a further 35,000 units intended to accommodate approximately 70,000 people.

However, despite these figures, the capital’s housing supply remains inadequate. Prague’s population has grown by around 150,000 people in the same ten-year period, excluding a daily influx of approximately 300,000 commuters and the arrival of tens of thousands of Ukrainian refugees. At the same time, many existing buildings require renovation, adding pressure to the city’s housing stock. The current level of new development does not meet the needs of the city’s expanding population or compensate for historical housing shortages. Demand for new apartments remains high, and 2025 is expected to see record sales.

The key to expanding Prague’s housing supply lies in unlocking brownfield sites. Around two-thirds of the 150,000 apartments currently in planning across the city are located on former industrial or underused plots. Prague 9 is a prime example, where several new neighborhoods are emerging on such sites, contributing to a consistent supply of new homes and offering some of the city’s most affordable prices.

Central Group Executive Director Michaela Váňová emphasized the importance of prioritizing brownfield redevelopment. “Where else should we build if not on brownfields? These sites already have existing infrastructure, they are located in desirable areas, and their redevelopment can bring new life to previously underused parts of the city. But zoning changes often take years to approve, delaying much-needed construction and pushing up housing prices,” she said. “We need more responsive and flexible urban planning to unlock this potential and meet the city’s growing housing needs.”