Gross rental yields in Prague, the capital of the Czech Republic, were at 3.8% in May 2009.  These yields are very low, and suggest that in future there will be downward pressure on the price of Czech residential property.

Square metre prices are at an average of €4,358, which is arguably rather high for a country at the income level of the Czech Republic (last year €3,860).

We do not believe that this situation is sustainable