Brno as the first big city in the Czech Republic has come up with a plan outlining how to start construction of apartments in a larger scale. In development locations, Brno plans to build roads and deploy gas or electricity distribution networks before developers begin with construction works on the site. In some cases, following the example of some metropolitan areas in the West, Brno could provide plots to developers. In this way, the city representatives want to halt the sharp rise in property prices, which makes housing in the city more and more unaffordable. Prague has been facing an even worse situation, and although trying to find inspiration abroad, unlike the Moravian metropolis, the capital city has not beem able to find a solution to the housing crisis. Brno is a leader, HN write.
"We have 1.5bn CZK allocated for investment in housing development. The goal is to secure that supply of apartments exceeds demand by 2030. As a result, price of purchase or rent should be more accessible to general public", Petr Hladík (KDU-CSL), Deputy Mayor of Brno responsible for housing told HN.
Another mode of partnership could look like this: the city would prepare the plots and the developers in return could set aside part of the flats for affordable housing. As a result, there could be at least 1,500 apartments per year available in the Moravian metropolis, of which 15 per cent would remain the property of the city. Brno has been the owner of 15% of the citiy's total housing stock and would like to maintain the share. Prague, on the other hand, owns 5% of the total housing stock and has to deal with a more complicated conditions.
13th November 2019
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