The hotel investment market in Eastern Europe – including the Czech Republic – is boosting due to increasing demand. The average room rate in Prague is estimated to be about € 101.40. As a result, hotel rooms supply in Prague, city that characterized by well-developed tourist industry, has increased by 33% since 2000. Prague ranks third in Europe for the hotel occupancy level (75.3% occupancy), after Amsterdam (78.5% occupancy) and Edinburgh (76.4% occupancy). The average room yield in Prague is about € 76.36.

Central banks in Czech Republic, Slovakia and Hungary are expected to raise interest rates this year to lower inflation. The average inflation rates in these countries are about 2.9 percent, compared with average 2.5 percent in the EU. According to various estimations of Bloomberg economists, the Czech Republic’s two-week repurchase rate is expected to rise from 2% to 2.25%-2.5% by the end of 2006.

According to the Local Development Ministry, the rents on price-regulated flats are about to grow by 19.2 percent a year on average between 2007 and 2010, especially in the more popular areas. For instance, the rent for a first category 70-mr2 apartment in Prague 1 is supposed to rise from CZK 2,600 this year to CZK 3,380 next year (about 30% grow). In some cities, such as Karlovy Vary, rents are supposed to grow by more than 30 percent. On the other hand, in some regions, such as the Ustecky region in northern Bohemia the rise is supposed to be slower, about 4% a year. As for purchase prices, the average price for large three-bedroom apartment in the suburbs of Prague is about CZK 2.2 million, compared with the CZK 1.9 - 2 million - the value at the of these apartments at the end of 2005.

DTZ, the international consultancy company for real estates, claims that the following emerging markets: Bulgaria, Romania, Poland, Czech Republic and Hungary became the most attractive real estate hotspots. The forecast is, that Russia and Ukraine will join in the near future to the attractive hotspots European list

The total value of all real-estate sales processed in Prague in the last several years is estimated to be CZK 800-850 million a year. The total value of the all real estate property in Prague is estimated to be CZK 700-billion and it continues to gain pace.