The capital city of Prague and the town hall of individual city districts are selling 2,400 flats this year, last year it was 400 less. Most city flats are owned by Prague 2, 14, 17 and 19, but most are offered for sale in Vinohrady, Žižkov and Prague 9. This follows from an analysis provided by KPMG ČR. Prague and the city district own a total of 5.7 percent of the Prague housing stock.
The Prague management has been continuing the privatization of hundreds of flats in prefabricated houses for several years. He sells whole houses, so-called functional units, to tenants. City spokesman Vít Hofman he told today’s Hospodářské noviny (HN)that Prague has so far sold 34 out of a total of 61 units, ie 1,812 flats. The final earnings from privatization are to bring about four billion crowns to the city treasury. The money goes to a special fund, which is intended for the construction of new apartments and for social purposes.
“We have two billion crowns in this fund. We plan to build apartments for a family in Černý Most. Borrow for 500 million crowns. A home for the elderly with two hundred beds for 300 million crowns will be built in Prague 13, “Radek Lacko (YES), councilor for health care, said today at a meeting with journalists.
At the end of the privatization, 7,000 flats will remain in Prague, mainly for social purposes, where tenants pay about 40 percent of the market rent. “The passportization of the housing stock showed that it is necessary to fill the gaps in investments. To increase the comfort of living, we want to invest 300 to 400 million crowns in apartment repairs in the following years, “said the councilor.
According to KPMG, 194,000 flats became the property of Prague after 1991. As a result of privatization, the city had 100,000 flats left in 2003. As of 31 May 2016, according to KPMG Prague, it owned a total of 35,000 city flats, ie approximately 18 percent of the original fund, of which 26,000 flats were entrusted to city districts and nine thousand flats were managed by the municipality.