EIB and Česká spořitelna Launch Affordable Housing Project in Prague

In a landmark move to address Prague’s deepening housing crisis, the European Investment Bank (EIB) has joined forces with leading Czech bank Česká spořitelna to roll out the country’s first major public-private affordable housing initiative. The ambitious plan, centered in the Czech capital, aims to construct over 700 environmentally sustainable rental apartments specifically earmarked for essential public-sector workers such as teachers, nurses, police officers, and municipal employees.

€60 Million EIB Loan Powers Public Sector Housing Push

At the heart of the project lies a significant financial commitment from the EIB, which is providing up to €60 million—accounting for nearly one-third of the total €187.5 million project cost. The remaining capital will be financed by DBČS (Dostupné bydlení České spořitelny), a subsidiary of Česká spořitelna dedicated to affordable housing initiatives. DBČS will also oversee the execution of the housing developments, ensuring quality standards and affordability benchmarks are met.

This project is set to transform four locations across Prague with state-of-the-art residential buildings, with apartment handovers expected throughout 2025 and into early 2026. It is the first of its kind in the Czech Republic and is positioned as a pilot for broader national and regional affordable housing frameworks.

Housing for the Backbone of Public Services

The initiative targets a vital yet often overlooked demographic—public-sector workers who form the backbone of municipal services but frequently face challenges affording accommodation in Prague's inflated housing market. As housing costs continue to outpace wages, particularly for frontline service professionals, the availability of rent-controlled, energy-efficient homes could offer a lifeline to hundreds of families and individuals.

EIB Vice-President Kyriacos Kakouris emphasized the broader vision behind the project: “We are excited to pioneer this affordable-housing project in the Czech Republic, which will significantly benefit Prague's public-services infrastructure. This initiative will contribute to social inclusion and urban regeneration in the country.”

Echoing this sentiment, Česká spořitelna CEO Tomáš Salomon said, “Housing affordability is a pressing issue in Prague and across the Czech Republic. Access to affordable housing is one of the fundamental pillars of a prosperous society that Česká spořitelna has supported for over 200 years.”

A European Model for Urban Inclusion

The project builds on a similar, successful initiative that the EIB supported in Austria, suggesting a replicable model for Central Europe. According to EIB Vice-President Ioannis Tsakiris, “The project in Prague reflects our commitment to ensuring that essential workers have access to quality homes they can afford. By working together with national partners, we are turning shared ideas into tangible solutions for Europe’s housing challenges."

The project not only meets a critical social need but is also expected to deliver substantial economic benefits. It will generate construction jobs in the short term and stimulate demand in local supply chains, while providing long-term stability and affordability for residents.

Czech Government Backs Holistic Housing Strategy

Czech Prime Minister Petr Fiala praised the initiative as part of a broader national effort to tackle housing challenges. “The Amadeus Residence is proof that we have created a functioning tool for expanding affordable housing through the cooperation of the state, municipalities, the private sector, and European institutions,” he said. He highlighted that the Czech Republic is among the first EU countries to tap into European funds to support rental housing, with programs worth CZK 11 billion launched to support construction, renovation, and acquisition of affordable homes.

This marks a turning point in how housing policy is approached in the Czech Republic, signaling a shift toward integrated public-private partnerships supported by EU institutions.

Sustainability at the Core

In addition to affordability, the project is notable for its commitment to environmental sustainability. All housing units will meet top energy efficiency standards, with buildings achieving PENB A and B ratings. These homes will feature cutting-edge green technologies, including energy-efficient heating systems, green rooftops, and advanced water management infrastructure, reducing both the carbon footprint and utility costs for tenants.

The environmental resilience of the buildings aligns with Prague’s broader climate adaptation strategy and underscores the EIB’s mission to promote sustainable development across Europe.

Toward a National Affordable Housing Framework

Supported by the EIB’s InvestEU Advisory Hub, this Prague initiative serves as a pilot for establishing a national affordable housing framework in the Czech Republic. It demonstrates a viable path forward in which public sector goals can be achieved through innovative financing mechanisms and coordinated collaboration between European and national stakeholders.

As the apartments begin to rise across Prague, this initiative may well become a template for similar efforts across the continent—merging economic logic with social responsibility, and addressing one of Europe’s most pressing urban challenges: access to affordable, dignified housing.