Investing in Real Estate in the Czech Republic and Analyzing the Dependence of Profitability and Technical and Socio-Economic Factors

Eduard Hromada and Tomáš Krulický
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Eduard Hromada: Faculty of Civil Engineering, Czech Technical University in Prague, Thakurova 7, 166 29 Prague, Czech Republic
Tomáš Krulický: School of Expertness and Valuation, Institute of Technology and Business in České Budějovice, Okružní 517/10, 370 01 České Budějovice, Czech Republic

Sustainability, 2021, vol. 13, issue 18, 1-12

Abstract: This article deals with the study of the dependence between selected technical and socioeconomic factors in the real estate market that affects the return on investment. These factors include the average annual rental yield, sale/rental price for an apartment, the number of ads related to the sale/rental of apartments per 1000 inhabitants, the number of new apartment ads per 1000 inhabitants, and the share of persons facing distraint. Data from the EVAL software were used for calculation. EVAL software was developed by one of the authors of this article and allows the collecting of advertisements promoting real estate for sale and rental in the Czech Republic. This article uses data for individual districts in the Czech Republic. The article uses the methods of descriptive and mathematical statistics. The dependencies between technical and economic parameters are investigated using regression analysis. Significant dependencies were identified between the following parameters: Between selling price of an apartment and the average annual rental yield; Between the average annual rental yield and the average number of months needed to pay for the apartment; Between the average annual rental yield and the share of individuals facing distraint, and between the selling price of an apartment and the price of an apartment for rent.

Keywords: corporate finance; investing; valuation; real estate; property yield (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:18:p:10273-:d:635290

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