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According to the real-estate market association, rents in Prague fell 50 percent between 1998 and 2004...
Prague's "Wild East" days, when multinationals were setting up offices in an underdeveloped housing market and paying a premium for hard-to-get high-end properties.
But the luxury market is stable today, with monthly rents of 251 to 500 crowns per square meter, the trade group reported. And it sees nothing on the horizon to shake up the market, although two trends could jiggle it a bit.
The first is the planned phase-out of rent control by 2012, which could throw more city center apartments onto the market. These will likely be renovated into high-end apartments, but given the continuing demand, the industry group foresees only a slight drop in prices, if any.
The second is the possibility that mortgage rates, which are around 4.2 percent, will rise. Higher rates, combined with the country's aging population, could mean fewer young people seeking small, starter apartments.
"The interest will shift toward larger flats of a family nature," the industry report predicts.
In short, no earthquakes threaten and no get-rich-quick schemes beckon.
Instead, Prague as an investment has become an affordable alternative to Western Europe and a safer place than much of Eastern Europe.
Source: Press Release
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