Czech Republic Launches New Fund for Affordable Rental Housing: CZK 1.9 Billion Investment
A new tool to tackle rising rents
The Czech Republic is preparing to launch a new investment fund dedicated to affordable social housing, with the aim of expanding the supply of reasonably priced homes and responding to growing housing pressure. The fund will be established in the first quarter of 2026 and represents one of the most significant recent initiatives in the field of social housing. The announcement was made by Česká spořitelna, which will participate alongside the State in a public-private co-investment model designed to ensure financial stability and social impact over the medium to long term.
Structure and funding of the fund
The new investment vehicle will have a total capacity of CZK 1.9 billion. Its financial structure is based on an equal split of resources: half of the capital will be provided by the State through the National Development Bank, while the other half will come from the private investor Česká spořitelna. Over the next three years, the fund aims to support the construction of around 400 affordable rental apartments, expected to house approximately 1,000 people. Investments will be evenly distributed between Prague and other regions of the country, avoiding excessive concentration in the capital and promoting more balanced territorial development.
Governance and project selection
Following a public tender, the management of the fund will be entrusted to REICO, an investment company within the Erste Asset Management group. The decision is based on REICO’s extensive experience in the Czech real estate market, considered essential to ensure efficient use of resources and professional asset management. The selection and preparation of individual projects will be coordinated by the Affordable Housing Company of Česká spořitelna (DBČS), which is already involved in similar initiatives. DBČS is currently working on several developments aimed at delivering housing for employees and families in socially and economically important areas.
Access to European financing
In addition to public and private capital, the new fund will also be able to access a loan from the European Investment Bank, further strengthening its financial capacity. Access to European resources will make it possible to broaden the scope of interventions and support projects with longer time horizons, while maintaining controlled rent levels. According to the fund’s promoters, the combination of public capital, private investment and European financial instruments offers a structural solution to housing affordability challenges, moving beyond one-off or short-term measures.
The Italian model as inspiration
The Czech fund is inspired by a model already successfully implemented in Italy. The initiative draws on the experience of Cassa Depositi e Prestiti, which established the National Housing Fund, the first European fund dedicated exclusively to social and affordable housing. This approach, based on cooperation between the public sector and the banking system, has shown how substantial investment can be mobilised to increase the supply of sustainable housing. For the Czech promoters, the Italian example provides a concrete reference for developing a system capable of combining financial returns with social impact, contributing structurally to a more affordable rental market across the Czech Republic.
