Property prices in the Czech Republic are nearing their peak. This year will set a new record, but 2017 will see a substantial slowdown as result of key legislative changes, including a new law on loans and a new tax for property buyers. Interventions by the Czech National Bank will also limit access to mortgages. Analysts foresee a drop in property investment that will lead to stagnation or even to drop in property prices, writes the economic daily Hospodářské noviny, pointing to the index of company expectations conducted by ČSOB. The Czech central bank recommended in October that banks not give 100-percent mortgages. As of April 2017, financial institutions will only be allowed to give mortgages for up to 90 percent of the property value. Mortgages worth 80 to 90 percent of the total purchase price may amount to 15 percent of the bank’s portfolio of loans at most. Hospodářské noviny writes that property prices are the highest they’ve been since 2007.
