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Prague real estate looks to be in the middle of a recovery from the lows during the economic crisis. Prague is the most stable residential markets within Central and Eastern Europe and also noted relatively stable price levels. The housing market of Prague is still off from the great period of 2006-2007. The annual level of dwelling starts fell to a ten year low. On the other hand, the number of apartments in the market offer is still high and yet the unsold units overall within the market offer might be a reason for concern. More-over, the proposed VAT increase from a reduced rate of 10%, relevant for the majority of apartments, to 20% is upsetting the market.