Is the Czech property market like the UK back in 2003

The Czech property market has performed very well over the last couple of years.

There have been reports recently that this growth period is coming to an end.

My view is that yes property price growth is slowing after the heady growth of 2007, but that property price growth in the Czech Republic will still remain healthy over the next couple of years.

It reminds me a lot of the UK property market back in 2003, after a period of good growth every one said that it could not continue much longer and then was the time to get out.

What followed was a sustained period of excellent property price growth for around the next 3-4 years all over the country, making many people very rich in the process. Those who sold sold in 2003 missed out indeed.

The parrallels are similar today in the Czech Republic.

Price growth has been good and has slowed a little (relatively), but I believe there are still good fundamentals to the market.

Unemployment is still low, the economy continues to expand well (unlike in western Europe), prices are still affordable for many and interest rates on mortgages have come down again in the last 2 weeks, 100% LTV (and more) is still available around 5-5.5% interest rate.

Many Czech banks have reported that after the summer period demand for mortgages has increased yet again, and i see this trend continue over the coming years as household debt is still extremely small compared with western European levels.

Overall I still believe strongly in the fundamentals of the Czech property market (similarly in Poland too) and that the next few years will still provide investors with a liquid investment market with good solid growth, good rents and good mortgage finance.

I ponder the question a lot whether I should cash in my gains from the last few years in the Czech Republic, but I fear this would be foolish and I will continue to buy properties in the Czech Republic when I find ones at the right price in the right location.