There are about 350,000 foreigners living in Prague as of 2025. By 2050, some estimates suggest that number can climb to up to 900,000. And in order to meet this demand, the city has announced a number of housing projects.

For example, the construction of a new district in Prague's Smichov district is expected to add three thousand flats in a few years. There is already strong demand for them among foreigners. Then there’s what some are calling the largest zoning change in Prague’s history: the Žižkov Freight Station (NNŽ) project, which would add around 20,000 units to the city. But as Dr. Zdeňka Havlová told me, Prague is still not building enough units despite these projects:

“Some estimates say that we need to build at least 10,000 apartments [annually]. The main goal should be to develop affordable housing. One example is the Prague Development Company, which was founded in 2020 by the city itself. Its task is to prepare housing projects specifically on city-owned property, including affordable rental housing. They are expecting to build around 6,000 to 8,000 apartments by 2035. Projects to look at include Peroutková, Nový Zlíchov, Dolní Počernice, and Bohnice.”

According to existing data, foreigners mainly buy smaller units for investment and rental purposes. There has been an increase in similar purchases in other Czech metropolitan areas, such as Brno. But as Dr. Havlová explains, we do not have exact estimates of how many properties foreigners own in Prague. We do know, however, how much property is being rented short-term: “Airbnb apartments make up about 1% of Prague’s total housing stock. But in certain central neighborhoods, that figure can reach 10%.”

One problem for the city is that it is difficult to pass policies across Prague’s 57 municipal districts, since each has some degree of autonomy. But the city can take other proactive measures, explains Dr. Havlová: “There are things the city can do now. Authorities can currently check whether apartments are legally intended for commercial accommodation and short-term rentals, or not, and enforce those rules. There’s also an ongoing national-level discussion in the Czech Parliament about giving cities the power to regulate this.”

In addition to the problem of inadequate housing, experts also raise concerns about congested traffic. For Dr. Havlová, one possibility would be to build residential areas in the form of 15-minute cities: “When we anticipate more people, the initial thought is: more cars, more roads, more parking. But experience, both from abroad and here, shows that building more road space actually invites more cars. So, that’s not a real solution.“

We sometimes say that traffic is like a river: where you allow it to go, it will go. The 15-minute city concept is one possible solution. The idea is to promote the development of neighborhoods where you can access essential services, such as schools, shops, parks, and healthcare, within 15 minutes by walking, biking, or public transport.

Prepared by the team from the foreign office CzechTrade Egypt.
Source: Radio Prague Internationals, https://english.radio.cz/25-residents-prague-are-foreigners-city-building-fast-enough-8856641
Author: Jakub Ferenčík