Real Estate in Prague - NYTimes.com This penthouse is in a six-story building that includes shops and offices but has apartments on its top two floors. Sections of the building date to the 16th century, but the structure was expanded and refurbished in 1998. The contemporary design is by the prominent Czech architect Eva Jiricna. An elevator ascends from the basement parking garage to a hallway on the fifth floor, which this unit shares with the other two apartments in the building. Off the foyer in addition to a half bath and a coat closet, the rectangular living and dining area has a sloped double-height ceiling and a floor of polished gray limestone tiles warmed by an under-floor heating system. A low glass shelf for displaying artwork runs the length of the back wall, opposite four pairs of French doors that open onto the balcony. Off the living area, the kitchen is hidden behind a stainless steel door inlaid with a ship's porthole. Equipped with a glass-topped breakfast bar in the shape of a candy cane and a gas cooktop set into an island, the room has a sleek design. Appliances, including the washer and dryer, the dishwasher, and the oven, are concealed behind stainless steel cupboard doors. The upper cabinets, also stainless steel, are set with frosted glass. A limestone staircase in the foyer leads to a glass-and-steel bridge that runs the length of the second floor. All three bedrooms are off one side of the bridge, which has glass safety railing overlooking the living area. The master bedroom has abundant natural light from a glass wall and a panoramic view of the city. White lacquered cabinets line two of its walls. The windowed master bath has a round glass sink, two wall-mounted mirrors and a limestone tiled floor. The shower stall is lined with stainless steel, as are the walls and cabinets. In sloped ceiling of the guest bedroom, dormer windows provide views of the Vltava River and the Prague Castle. The third bedroom, which is larger than the other two, functions as a den and home office. The apartment comes with a parking space in the basement, a rare amenity in Old Town Prague. It's possible to buy an espresso or a meal within a few blocks. The building faces the Vltava and the flowering fruit trees in Petrin Park. Swans from the river sometimes fly past the windows, and the National Theater is close enough that the current owner can come home during intermission. The nearest subway stop is a two-minute walk, and the airport is a 30-minute drive from the apartment. The market in the Czech Republic boomed from the late 1990s through 2007, said Ondrej Novotny, head of research for the Prague office of Jones Lang LaSalle. "The crisis hit us in late 2008 and 2009," he said. Prices dropped 20 to 30 percent, depending on location. Now there are strong signs of recovery. High inflation rates have pushed up the demand for real estate investments. "People buy properties to secure their money against inflation," said Prokop Svoboda, a partner in the luxury real estate company Svoboda & Williams. Low interest rates are helping stimulate the market, said Marketa Mikova, the head of public relations for Jones Lang LaSalle's Prague office. She added that 80 to 90 percent of Czech buyers use mortgages, so interest rates have a big impact. Interest rates are around 4 percent at the moment, although most banks require a higher loan-to-value ratio than they did during the boom years. In the Old Town, housing development is a challenge because of limited space and restrictions on demolition. In the New Town area, however, new or recently refurbished properties area cost about 100,000 koruna per square meter ($491 per square foot, at 19 koruna to the dollar). In the Old Town, prices are higher - around 130,000 koruna per square meter, Mr. Novotny said. The property profiled here is priced at 158,000 koruna per square meter, higher than the average because it was designed by a highly regarded architect and has river views, according to the listing agent. Before the market peaked in late 2007, foreigners made up about half of Svoboda & Williams's buyers. "These days it's 20 percent," Mr. Svoboda said. Of that number, he estimated that 10 percent are Russians, the remaining 10 percent from other countries. Most of the Russians are investors, while the other foreign buyers are generally expatriates living in Prague. "Any foreign subject can buy properties in the Czech Republic," said Linda Martynkova, senior property consultant for Svoboda & Williams and the listing agent for this property. In the Czech Republic, the seller pays all transaction costs, Ms. Martynkova said. These include a 3 percent property transfer tax, a real estate agent commission of about 3 percent plus a 20 percent value-added tax, and any capital gains taxes resulting from the sale. The buyer pays no transaction costs other than the sale price of the property. It is common for buyers and sellers to use the same real estate agency. "The ideal case is we act on both sides and play the role of the mediator," Ms. Martynkova said. Svoboda & Williams has in-house lawyers who help with the transactions. Some buyers choose to hire their own lawyers and pay separately for their services, but this expense is not required, she said. Czech Republic Expatriate site: expats.cz Prague Post (English language newspaper): praguepost.com Official Czech tourism site: czechtourism.com Czech; Czech koruna (1 koruna = $0.05) Building management fees are around $265 a month, according to the owner. The property taxes come to $115 a year. Linda Martynkova, Svoboda & Williams, 011420-257-328-281; svoboda-williams.com