Abstract
This paper describes the situation on the current residential real estate market in the Czech Republic, which is driven by Prague residential market. We are facing continuous price increase over the past few years. Recently banks came with a new regulation scheme for mortgages, which limits maximum amount could be lent in percentage of the apartment purchase price. This paper analyses if the residential market in Prague is facing new bubble on the market and if this step taken by banks in mortgage lending is caused by defensive strategy or if the market is not facing any big troubles and the change in LTV is just the regulatory step.
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