The latest installment of the "Ideological Breakfast" series, focusing on the development of investments in cities and municipalities, this time addressed the issue of affordable rental housing and the state's planned subsidy program. The event, organized by CEEC Research at the Center for Architecture and Urban Planning in Prague, attracted experts from various sectors, including representatives of local governments, economists, architects, developers, and technology providers.

Michal Vacek, Director of CEEC Research, described affordable housing as one of the most pressing issues, a sentiment echoed by the strong interest from the professional community and the quality of the discussions at the event. “Today's meeting brought together representatives from cities, investors, and suppliers, but most importantly, it fostered a valuable discussion about how to ensure affordable housing,” Vacek said.

Daniel Ryšávka, Director of the State Investment Support Fund, outlined the key parameters of a new program aimed at the construction of affordable apartments. This program is intended to finance both new construction and renovations, as well as the acquisition of housing units. Ryšávka emphasized that the state plans to involve developers and investors in the program.

Dušan Kunovský, Chairman of the Board of Central Group, pointed out that the construction of new apartments is crucial for ensuring affordable housing. “In the Czech Republic, we need to build 25,000 rental apartments per year. To achieve this, we need effective legislation that does not slow down construction processes, and efficient financial tools,” Kunovský said. He works closely with the Ministry of Regional Development and the State Investment Support Fund in preparing specific programs.

Dušan Kunovský, Chairman of the Board of Central Group

Member of Parliament Milan Wenzl from the Subcommittee on Housing Policy and Construction expressed skepticism about the subsidy programs. He would prefer cooperative housing, which has proven successful in other countries. “As a former mayor of a city district, I have a lot of experience and I don't believe that the current subsidy programs will achieve the desired results. Instead, we should revive the system of cooperative construction,” Wenzl said.

Some municipalities are already considering how to utilize the new program. For example, Prague 8, in collaboration with an investor, is planning to build a multi-functional building with apartments where prices would be 10% lower than market rates. This project also includes the construction of a fire station, a multi-functional playground, and other spaces for public use.

Economist Štěpán Křeček from BH Securities praised the initiative of Prague 8, but cautioned that the 7 billion crown program will not completely solve the housing problem. “It is a positive step, but to truly address the issue, we need to change land-use planning and speed up building permits,” Křeček said.

During the discussion, it was repeatedly emphasized that while the state invests hundreds of billions in transportation infrastructure, it should also devote the same attention to affordable housing. For example, better connections via high-speed trains could alleviate the housing situation in Prague and other major cities.

Architect Jan Holna and Dušan Kunovský agreed that high-quality design does not have to be sacrificed for the sake of standardization. Standardized buildings can be aesthetically pleasing while also being cost-effective. According to Kamil Jeřábek from Wienerberger, the path to faster construction lies in standardization, which can reduce costs by as much as half.

David Šiller from Wood system highlighted the potential of wooden buildings, but noted that they face legislative limitations. The first projects for wooden rental housing are already underway, for example, in Žďár nad Sázavou, where a building with 12 apartments is being constructed.

Despite differing opinions on the best model for building affordable housing, the participants agreed that it is necessary to explore alternative solutions beyond subsidies.

(Source: CEEC Research / gnews.cz_07)