Three quarters of Prague residents do not plan to purchase real estate in the near future.

Buying property in the capital is becoming increasingly unaffordable, which is why three quarters of Prague residents do not plan to invest in their own housing in the city in the near future. The main reason for this is the high prices.

This emerges from a May survey conducted by the STEM/MARK agency among 505 respondents for the Prague Chamber of Commerce (HKP). The survey confirmed the Czechs’ desire to live in their own home, which 83.8 percent of respondents long for.

“The situation is not black and white, and it cannot be said that there is a clear crisis in Prague,” commented Petr Michal, Chairman of the HKP Board, on the survey results, which showed that 9.1 percent of people are definitely satisfied with the housing situation in the capital, 31.8 percent rather satisfied, 28.7 percent rather dissatisfied, and 22.5 percent definitely dissatisfied (with the highest dissatisfaction among residents of Prague 3).

The main reasons for dissatisfaction cited in the survey were the high purchase prices of apartments (76.4 percent) and high rents (65.7 percent). A quarter of respondents are bothered by the lack of apartments in their preferred areas in Prague.

Own housing was preferred by 83.8 percent of respondents, with most stating that owning a home provides them with greater security and freedom compared to renting. “It’s a social status, Czechs like to live in their own homes,” added Michal. Only 16.2 percent of respondents said they do not prefer owning their home, but more than half of them (56.1 percent) added that due to financial reasons they have no other choice.

The survey also showed that nearly half of respondents (47.2 percent) live in their own apartment, 34.2 percent rent, and 7.7 percent live with their parents. Six-point-seven percent live in cooperative housing.

However, the situation is likely to change. High property prices and rising mortgages affect people’s options. Therefore, in the near future, 75.6 percent do not plan to buy real estate. The issue of rental housing is becoming increasingly relevant, and there is talk about so-called affordable housing.

Affordable housing is supposed to have rents about 25 percent below market prices and be accessible to essential professions (such as teachers, nurses, caregivers, police officers). Projects like these are being launched, for example, by Česká spořitelna (ČS), which, following its parent Erste Bank, established ČS Affordable Housing and could offer the first apartments within two to three years. “It should be acceptable housing, not significantly worse than commercial. But cities won’t solve it on their own,” said Pavel Kelner, member of the ČS Affordable Housing board.

According to Luděk Sekyra, owner of the development company Sekyra Group, it is necessary to define what affordable and social housing mean. “Finding a systemic solution is important, and I have not seen any so far,” Sekyra noted. “Here, we are unable to sit down at one table to cooperate on a large project and realize that it is a common interest how Prague should look.”

The article was published on the website SeznamZpravy.cz on June 16, 2022.