Czech Republic's Hot Property Market Is Becoming A Problem
Published October 16th, 2017
PRAGUE (AP) — The Czech Republic's capital has the hottest residential property market in Europe, and it's becoming a problem.
A 22 percent spike in prices over the past year is freezing out many locals from buying a home and the risk of a boom and bust in the market has forced the Czech Central Bank to step in to try to cool off demand.
While many countries in Europe have seen strong gains in real estate values recently, the Czech capital stands out, thanks to a combination of factors: a lack of new apartments, strong demand amid a growing economy and low borrowing rates, and a boom in investment buying to set up Airbnb businesses.