The Prague residential market has been growing both in size and value. Improvements in the mortgage market have resulted in a dynamic real estate market, with a high number of potential buyers and an increasing supply of newly built apartments. But an investor will obviously have different criteria from those of a young family.

Some people say the best time to invest was in 2002 and 2003, as we witnessed a rapid growth in prices before the Czech Republic joined the European Union. But I disagree. In some locations in Prague, the growth reached a 20 percent increase within 12 months. Even though at this moment the growth isn't as rapid as in pre-accession years, in many neighborhoods we still see double-digit figures. Currently, prices are growing by 8 to 15 percent a year, depending on the exact location. A positive thing is that the market hasn't overheated. Demand is not driven by unrealistic expectations, but by increased buying power and a strong desire to improve existing standards of living.

For investors, the key word is revitalization. Smíchov and parts of Karlín are good examples of successful reconstruction of large areas, which has resulted in the regeneration of city life in those locations. Smíchov and Karlín will soon become integral parts of the city center, as both districts share a border with Prague 1.

Zižkov, Holešovice and Libeň will probably be the next hot spots to experience a similar rebirth. Many developers also have high hopes for Vysočany, formerly the largest industrial district in Prague. However, unlike Holešovice and Libeň, Vysočany does not have direct contact with the river. And compared to Zižkov, Vysočany is further away from the center.

Zižkov will offer an excellent opportunity for both investors as well as for families. On the edge of one of the green hills and just steps from a proposed underground station, the residential complex Central Park Praha will probably become a landmark of the Prague residential market. Walls and roofs covered by greenery and glass-and-steel towers are the main visual features of the project. A family-oriented sports center will become an integral part of the planned complex.

When it comes to families, Prague 6 and Prague 5 are prime locations. Thanks to several hills and valleys covered by greenery, these districts offer a lifestyle in a relatively unspoiled setting. A few years ago, the success of the Terasy Červený Vrch development showed that many buyers search for apartments in a more natural setting, but with convenient transportation to the city center. Nová Liboc, developed by ING Real Estate, or Metrostav's new project Krutec may soon experience similar success. Nová Liboc is situated near a lake, while apartments at Krutec will have views of extensive parkland.

Moving closer to the center and keeping in mind the high expectations of those clients who want to live in the busy city, Residence Nový Anděl could be the right answer. In September, we will start marketing 28 apartments there that have been purchased by Queensway Apartments and upgraded to a totally different level. Apartments now include master bathrooms with under-floor heating, hardwood floors and custom-made doors. These new apartments will be offered for sale or rent.