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European Investment Bank and ýîeskÈí spoÊÖitelna Partner on First Affordable Housing Project in the Czech Republic

Strategic Insights

— 2 min read

The European Investment Bank (EIB) has partnered with ýîeskÈí spoÊÖitelna to launch the first affordable housing project in the Czech Republic. The project aims to build over 700 apartments in four locations in Prague, specifically for public-sector workers, including nurses, teachers, police officers, and administrators. The EIB will finance a part of the project, providing ýîeskÈí spoÊÖitelna with a loan of up to €60 million, which is almost a third of the total project cost of €187.5 million.

Key Takeaways:

  • The EIB-backed project will provide over 700 new apartments for public-service employees in Prague, with delivery scheduled throughout 2025 and early 2026.
  • The project will be managed by DBýîS, a subsidiary of ýîeskÈí spoÊÖitelna, which stands for Dostupné bydlenÈ¡ ýîeské spoÊÖitelny (ýîeskÈí spoÊÖitelna Affordable Housing).
  • The new homes will adhere to high energy efficiency standards, reducing energy consumption and long-term costs for residents, and will be environmentally sustainable.
  • The project is designed to contribute to social inclusion and urban regeneration in the Czech Republic, and is expected to boost the local economy, generating employment during the construction phase and offering long-term housing solutions for essential workers.
  • The initiative is a pilot project that contributes to the development of a national framework for affordable housing in the Czech Republic, supported by the EIB through the InvestEU Advisory Hub.
  • The project builds on a successful EIB-backed initiative in Austria and represents a promising approach to the development of affordable housing in central Europe.

Statistics:

  • The project aims to build over 700 apartments in four areas of Prague.
  • The EIB will finance part of the project with a loan of up to €60 million.
  • The total project cost is €187.5 million.
  • The project is expected to deliver public-service employees with affordable housing options.
  • The Czech Republic's Prague metropolitan area has a population of approximately 1.35 million people, representing about 13% of the country's population.
  • The EIB Group signed operations worth a total of €2.47 billion in the Czech Republic last year.
  • The EIB Group is committed to supporting €1 trillion in climate and environmental sustainability investments in the decade to 2030.
  • Approximately 60% of the EIB Group's annual financing supports projects contributing to climate change mitigation, adaptation, and a healthier environment.

Sources:

  • European Investment Bank (EIB) press release
  • ýîeskÈí spoÊÖitelna press release
  • Czech Prime Minister Petr Fiala's statement
  • EIB Group's Climate Bank Roadmap
  • InvestEU programme information
  • ýîeskÈí spoÊÖitelna's website information

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