Yesterday Czech Parliament passed the law that will lead to increase in regulated rents and need to be signed by the president. Rents will rise during period of 2007 – 2010 in average by 14.2% annually. The highest rent increase will be in big cities like Prague and Brno. However, landlords are still not satisfied as rent hike won’t still cover their maintenance costs. We see this news as positive for Orco as it will at least partially wipe out discrepancies at real estate market and thus reiterate our Buy recommendation.