Czech Republic: EIB backs Prague’s first affordable-housing project for public service employees

• EIB and Česká spořitelna partner on First Affordable Housing Project in the Czech Republic backing construction of more than 700 apartments in four areas of Prague
• Public-sector employees to benefit from new housing units that will adhere to high energy efficiency standards ensuring sustainability and reduced energy costs for tenants.
• Pioneering initiative in Czech Republic to ease housing crunch and bolster urban regeneration.

The European Investment Bank (EIB) is teaming up with Czech bank Česká spořitelna to increase the number of affordable homes in the capital Prague, marking a first-of-its-kind housing initiative in the country. The EIB will finance part of the project, which aims to build more than 700 apartments in Prague for public-sector workers.

The EIB is providing Česká spořitelna with a loan of up to €60 million – almost a third of the total project cost of €187.5 million. The EIB credit and the remaining sum, which will come from a Česká spořitelna subsidiary called DBČS, to fund the housing construction. 

Over 700 new apartments are set to be built across four locations in Prague, with delivery to public service employees scheduled throughout 2025 and early 2026.

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

The Prague metropolitan area is home to approximately 1.35 million people, representing about 13% of the Czech Republic’s population. Like cities across Europe, Prague faces a housing crunch.The EIB-backed project in the city is designed specifically for key public-sector employees including nurses, teachers, police officers and administrators.

Such workers are vital to the functioning of public services and often struggle to afford market-rate rents or home ownership.

DBČS, which stands for Dostupné bydlení České spořitelny (Česká spořitelna Affordable Housing), will manage the project. In addition to being more affordable, the new homes will be environmentally sustainable with top energy-efficiency standards that reduce energy consumption and long-term costs for residents. 

“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. That’s why we are committed to helping address this nationwide challenge,” said Česká spořitelna Chief Executive Officer Tomáš Salomon. "We believe that meaningful progress can be achieved through effective partnerships between the public sector and private capital."

The project builds on a successful EIB-backed initiative in Austria and represents a promising approach to the development of affordable housing in central Europe as a whole.

“The project in Prague reflects our commitment to ensuring that essential workers have access to quality homes they can afford,” said EIB Vice-President Ioannis Tsakiris. “By working together with national partners, we are turning shared ideas into tangible solutions for Europe’s housing challenges."

Beyond its social benefits, the development is expected to boost the local economy, generating employment during the construction phase and offering long-term housing solutions for essential workers. It directly addresses affordability challenges while reinforcing the delivery of public services.

“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. The Czech Republic is among the first four EU countries that have successfully secured the use of European funds to support rental housing. In total, we have launched programs worth 11 billion CZK to support the renovation, purchasing, and construction of new apartments. Together with other affordable housing projects and approved legislative measures, we are helping to accelerate the construction of new homes,” said Czech Prime Minister Petr Fiala.

From an environmental perspective, the scheme incorporates climate adaptation features such as green roofs, advanced water management systems, and energy-efficient technologies. These elements will enhance the resilience of the buildings and contribute to Prague’s broader sustainability goals. All residential buildings will comply with stringent energy efficiency criteria, achieving PENB A and PENB B ratings. This ensures that the new housing units are not only affordable but also environmentally sustainable, reducing energy consumption and long-term costs for residents.

The initiative is a pilot project that contributes to the development of a national framework for affordable housing in the Czech Republic, supported by the EIB through the InvestEU Advisory Hub. It reflects the EIB’s broader mission to support sustainable and inclusive development across Europe.

Background information

About the European Investment Bank

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives by bolstering digitalisation and technological innovation, security and defence, agriculture and the bioeconomy, social infrastructure, high-impact investments outside the EU and the Capital Markets Union. The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 projects in 2024. These commitments are expected to mobilise around €350 billion in investments, supporting 400,000 companies and 5.8 million jobs. In the Czech Republic, the EIB Group signed operations worth a total of €2.47 billion last year.

All projects financed by the EIB Group are in line with the Paris Climate Accord and exclude funding of investments in fossil fuels. The EIB Group is on track to deliver on a commitment to support €1 trillion in climate and environmental sustainability investments in the decade to 2030 as pledged in the organisation’s Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation and a healthier environment.

Approximately half of the EIB's financing within the EU is directed towards cohesion regions, where per-capita income is lower. This underscores the EIB's commitment to fostering inclusive growth and the convergence of living standards.

For more information, please visit the EIB website.

About InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

About Česká spořitelna

Česká spořitelna is a bank with the longest tradition in the Czech market. Its history is dating back to 1825, and in 2025, the Bank proudly celebrates 200 years of serving the market. Today, Česká spořitelna is a modern bank focusing on retail customers, small and medium size enterprises, towns and municipalities. The bank plays an indispensable role in financing large corporations and in providing services in the area of financial markets. Since 2000, Česká spořitelna has been a member of European banking group Erste Group. Its market position enables the bank to set trends in the fields of banking services and also in technology innovations.