Prague Unveils Ambitious Plan for 50,000 New Apartments in Letňany to Combat Housing Crisis!
A significant new residential neighborhood is poised to develop in Letňany, Prague, with the capability to provide up to 50,000 housing units.
The initiative, announced on Tuesday by Deputy Mayor Alexandra Udženija (ODS), is a crucial element of the city’s plan to tackle its escalating housing crisis. City authorities assert that the responsibility for this development should lie with the city—not private developers.
Prague is currently experiencing a critical shortage of housing, and Udženija emphasizes that at least 9,000 new apartments must be built each year to satisfy the increasing demand.
However, advancement has been sluggish, hindered by administrative bottlenecks and a city government that still relies on national approval for housing projects.
“We are working to expedite the process as much as we can,” stated Adam Zábranský (Pirates), the city’s housing councilor. He mentioned that ongoing discussions with the state might lead to a conditional transfer of land, with the plan to ensure that some of the housing units are allocated for affordable and social rental purposes.
A significant portion of the land in Letňany earmarked for this project is owned by the state, but influential private entities, including major landowners such as PPF and Kaprain, also possess considerable pieces of land. Consequently, an agreement between the city and the state is essential to advance the project.
Deputy Mayor for Strategic and Territorial Development Petr Hlaváček, who is also the founder of the Prague Development Company (PDS), noted that the Letňany location has the potential to serve as a template for sustainable urban development, drawing inspiration from Denmark. He suggested utilizing materials like wood or silicate and highlighted the importance of efficient production methods, steering clear of a return to prefabrication.
The Prague Development Company is already working on smaller development initiatives, with a goal to construct 6,000 to 8,000 new apartments across approximately 60 sites in the next decade. These projects will also incorporate facilities such as kindergartens, schools, and healthcare centers.
In 2024, the company submitted an application for building permits for 450 housing units, and there are plans to seek approval for an additional 1,400 apartments between 2025 and 2026.
While Prague can finance smaller developments using its municipal budget, larger projects like the Letňany initiative will necessitate long-term funding solutions and collaborations with external partners. Hlaváček indicated that cooperation with organizations such as the European Investment Bank could be one of the feasible options.
