A frequently overlooked fact in the housing market is that there are 125,000 university students in Prague and 65,000 in Brno. In Olomouc, for example, university students account for 23% of all residents. These students have a significant impact on the rental housing market in university cities. If the state wants to take a more active role on the supply side of the real estate market, constructing university dormitories presents a suitable opportunity. Although public-private partnership (PPP) projects do not have a long tradition in the Czech Republic, this type of project appears to be an ideal candidate. The following text outlines a specific model of possible cooperation.

Key takeaways:

• The state should undertake the construction of new dormitories through PPP projects, which would influence the supply side of the real estate market and ultimately slow the growth of rental prices.
• PPP projects are advantageous for the state because they allow for precise definition of requirements for the private sector, better cash flow management, and they do not count towards national debt.
• The private sector, in turn, has the necessary expertise to construct and operate dormitories for the duration of the project.

Analysis –Martin Zeman

The analysis is in PDF under the link below.