In the lead up to the Czech Republic joining the EU in May 2004 much of the property investment activity in Prague was concentrated in the city centre.

Prague's two central districts, Prague 1 and Prague 2, are the most architecturally beautiful and where the business and financial hub of the city is traditionally located. Many of the old buildings were bought up and renovated and any spare patch of land was quickly gobbled up and built upon.

This wave of concentrated investment lead to sharp rises in prices in Prague 1 and 2, forcing many investors to look in more outlying district for the 'next' opportunity.

Up until the Czech Republic joined the EU the property market was one of the strongest in Eastern Europe. However, since May 2004 the Czech property market has been very quiet indeed with growth rates struggling to average 10% per annum, despite all the economic figures showing a stellar performance.

Greedy Developers