Strong property market - The residential market has been booming over the last number of years and in contrast with a lot of Eastern European property markets, the boom in Prague Property is fuelled entirely by domestic demand and not foreigners. As you can see from the growth in the average monthly wage above, Czechs are easily able to afford the low mortgage payments on offer with the local banks. The growth in the market is expected to continue at approximately 10-15% per annum for the foreseeable future.
In a recent survey entitled "Emerging Trends in Real Estate® Europe 2005" conducted by PricewaterhouseCoopers and the Urban Land Institute, Property in Prague came top of the list in the Office Property & Industrial/Distribution buy recommendations. Prague also came second for Retail Property buy recommendations. For residential investments, PricewaterhouseCoopers categorised Czech Republic in its "Best Bets" section citing "an expected VAT increase in the Czech Republic is accelerating demand for development land and is increasing land and construction costs". The Czech Republic was the only Eastern European country in the residential "Best Bets" section.