The country is divided into eight administrative regions, with Prague, the capital, the most important, one. The Czech Republic has become an associate member of the EC with Poland and Hungary, with the objective of joining fully by 2000 and developing closer links with the European free trade area. Residential Market Demand, particularly for good accommodations, continues to be strong, supporting high levels of rent. Parts of the market are subject to state control of rents, however, which could restrict development in some areas. Larger accommodations are in such short supply that development continues despite restrictions.
Rents depend upon whether a residence is furnished and whether it is a flat or a house.
Foreign citizens are often given preferential treatment as tenants. Fees for agents or negotiators for finding accommodations are approximately equal to a one month rent, depending on the size of the unit. In Prague, the main retail district is concentrated in the core area, Prague 1, along several streets including Vaclavske namesti, Na Prikope, Narodni, Namesti Republiky and Staromestske namesti. The retail area as a whole extends between the Wenceslas Square and the Clock Tower and over the Charles Bridge to Malostranske Namesti. Automobiles are prohibited in most of this area.