Housing Standards 2004/2005
Financing Housing and Refurbishing Housing Estates

6. The Refurbishment of Prefabricated Housing Estates in the Czech Republic

6.1 Introduction

At the time of the last population census in 2001 there were altogether 79 537 prefabricated buildings with 1 215 243 flats in the country. That is almost one-third of all the permanently occupied flats in the Czech Republic, 57% of all flats in tenant buildings. Part of the problems that the Czech prefabricated housing estates suffer from are very similar to the problems that housing estates are facing in other European countries - the anonymity that characterises such massive residential complexes, their peripheral location in relation to urban centres, the multi-functional design of the housing estates, the lack of buildings with public facilities, the potential danger in the concentration of social problems in housing estates, or inadequate nice and heat insulation of the flats. A serious problem however appears at present to be the structural and technological conditions of the prefabricated buildings themselves, a problem that is largely specific to the post-communist countries.

When speaking about the refurbishment of prefabricated housing estates the question necessarily arises of whether it would not perhaps be more useful to let the housing estates "die out" and invest instead into the construction of new quality flats and family homes. It is well known that people living in the Czech Republic prefer owner-occupied housing to rental (about 80%) ^[3] and their goal is usually to acquire owner-occupied housing. But in some Czech towns, particularly where the prices of owner-occupied housing are too high, households with low and often even those with middle incomes cannot of course afford owner-occupied housing or market rent in the new, more expensive tenement buildings (especially in Prague). The future of flats in prefabricated housing estates, at least in a mid-term outlook, may lie in their functional use as affordable rental housing (whether as communal or private rental flats). Even in the sector of owner-occupied housing prefabricated flats have their place - in the Czech Republic there is a great need for cheaper "start-up" flats (e.g. for young people or households of divorcees). However, the success of this strategy depends on future price developments of flats in prefabricated housing estates and also on the image that prefabricated housing estates acquire and maintain. For the buyer owner-occupied housing is also a specific form of investment, and if the prices of prefabricated flats were to fall continually in the long term, the demand for those flats, even if they were financially more affordable, would also be considerably reduced. For the successful future of prefabricated flats in the sector of owner-occupied and rental housing there is essentially one imperative - the most complex, targeted, and efficient refurbishment of the housing estates.

A large portion of the housing fund in prefabricated buildings in the Czech Republic is owned by building cooperatives (approx. 34%). Flats owned by cooperatives are generally in better physical condition than current communal (former state) flats, especially owing to the higher standard of maintenance, repairs, and the more responsible approach of members of cooperatives. Municipalities represent the second largest owner of the housing stock in prefabricated flats (approx. 27%). A significant proportion of flats in prefabricated buildings are also owned by owner associations (over 13%) or are in buildings where there is combined ownership (more than 23%).