Experts: Increasing apartment construction by 20,000 is ambitious, not unattainable

Prague - An increase in the construction of new apartments by 20,000 annually within five years, as anticipated by the government's economic strategy, is considered ambitious by experts but not an unattainable goal. However, it will depend on whether the state can increase working capacities, of which there is currently a shortage in the construction sector. The government must actively seek to accelerate construction and simplify conditions for builders. Without a significant acceleration of construction, it will not be possible to meet these ambitions. This is evident from the statements of experts available to ČTK.

In the Czech Republic, according to the economic strategy of the ANO government, SPD, and Motorists, 50,000 new apartments should be built annually within five years. This would be about 20,000 apartments more than currently. Of the total number, approximately 10,000 new apartments should be public, cooperative, or under the so-called affordable housing regime. According to data from the Czech Statistical Office, 33,742 apartments were completed in the Czech Republic in 2025, which is an increase of about 3,500 apartments year-on-year.

According to Michal Vacek, director of the analytical company CEEC Research, it will not be possible to accelerate the pace of construction of new apartments without fundamental preparations throughout the Czech construction industry. "Construction companies are currently facing a long-standing shortage of skilled workers. Personnel capacities are one of the main limits to further growth. If the sector is to increase the volume of construction by tens of percent over the next few years, not only must legislation and permitting processes adapt, but also the labor market," Vacek said.

The demand for builders will also be further increased according to Capitalinked analyst Radim Dohnal by larger infrastructure construction, which is also accounted for in the economic strategy. Therefore, according to him, the plans will not be easy to realize, partly because, in addition to the shortage of employees, the sand pits also lack sufficient capacities. According to Dohnal, the current shortage of housing is not only due to inadequate land for construction and a lack of housing but also the atomization of households. He believes that pensions should be valorized more slowly so that generations of families come back together. At the same time, according to Dohnal, former railway buildings should be used more effectively, and converting non-residential spaces into apartments should be made easier.

The effort to accelerate construction and increase the availability of housing in the Czech Republic is considered by XTB investment platform analyst Pavel Peterka to be the best point of the economic policy presented by the ANO government, SPD, and Motorists. However, he is also skeptical about the pace of new construction. "I am afraid that it will not be easy, and the effect will come only after many years. However, every step towards solving the housing crisis is desirable. Even just a seriously intended plan and taking the first steps to get construction moving would act as pressure to slow down the growth of residential property prices due to the expected increase in supply in the future," Peterka added.