České Budějovice will build a residential complex for 1.6 billion CZK, three hundred apartments will be created

České Budějovice - České Budějovice will build a residential complex in the Čtyři Dvory district. More than 300 new apartments will be created. The estimated costs are around 1.6 billion crowns. This is a pilot and at the same time the largest affordable housing project that the government presented last week. City officials told journalists today.

The residential complex will be built on the site of the former barracks. The city will obtain a loan of 900 million crowns from the National Development Bank on favorable terms for the project. The interest rate is expected to stay two percent below the market rate, but will never fall outside the range of one to 3.5 percent. "The state is offering a subsidized mortgage for the city in this form, which will then be repaid from the rent of the apartments by people and will not burden the city's budget," said the city councilor and South Bohemian governor Martin Kuba (ODS).

He added that no city in the Czech Republic is capable of investing a one-time amount of 1.5 billion crowns to build a similar residential complex in a short period. This would significantly burden its own budget. The project that České Budějovice are preparing will be financed by the municipality with approximately 700 million crowns, which will be recouped from rent over the course of several years. "When we divide that amount over the individual years, it will be approximately 200 million crowns per year until the project is completed. It is a high amount, but the city budget can handle it," said Kuba.

Last week, the government introduced an affordable housing program and specific parameters for supporting the construction of affordable rental housing in the Czech Republic. In the first phase, the state will offer support in the amount of eight billion crowns in the form of subsidized loans for the construction of apartments with rents lower than the market average. České Budějovice expect that the rent for apartments in Čtyři Dvory will be between 200 to 300 CZK per square meter per month.

The complex will cover an area of almost 2.5 hectares and interested parties could obtain the first apartments in 2028. "These will not be social apartments. We want to offer housing mainly for young families and young people in this way," said Kuba. The complex will feature apartments ranging from 1+kk to 3+kk.