The Czech Republic

Think of the Czech Republic, and you will immediately think of Prague. This was one of the first cities in the region to be discovered by the backpackers and the long weekend crowd, and then by property investors. For this reason, this is a market which can properly be considered as “emerged” rather than emerging. Even though property prices in the most exclusive parts of Prague are on a par with some Western European capitals, there is still money to be made, however, provided you choose carefully. As elsewhere, prices rose in the run-up to EU membership in May 2004, but drifted back down thereafter. The market is rising again, though, and looks likely to continue to do so, thanks both to growing incomes (real wages are going up roughly 6% a year) and to the greater availability of mortgages. Brno, the second city, is also worth considering, although there may not be much of a rental market. Unusually, foreign buyers are not curently permitted to buy property directly, but must do so by forming a company. Under EU rules, this restriction is due to end by 2009 at the latest and it does not prevent you from obtaining a mortgage from a Czech bank.

If you want to know more, you’ve got to buy the book…