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Determinants of Real Estate Prices in the Statutory City of Brno

Author

Listed:
  • Vlastimil Reichel

    (Masaryk University - Department of Economics, Lipová 41a, Brno, Czech Republic)

  • Petr Zimčík

    (Masaryk University - Department of Economics, Lipová 41a, Brno, Czech Republic)

Abstract

The real estate market demand for both-houses and flats has been growing recently. This trend is one of the factors, which are able to influence the price of real estate. Our paper introduces determinants of housing price and their influence on actual real estate prices in the statutory city of Brno. The aim of this paper is to present key determinants of house price and find the hedonic price model, which describes, how determinants affect house price best. Realized prices were analyzed for housing units located in different districts of Brno. Key determinants in this research are a year of sale, an area of flat in square meters, number of rooms, location in districts of Brno, type of masonry and reconstruction. The dataset covers the time period between years 2012 and 2015. Hedonic price model is estimated by the method of ordinary least square. Besides main aim, four assumptions were verified, which should determine the influence on the price of individual determinants in the statutory city of Brno.

Suggested Citation

  • Vlastimil Reichel & Petr Zimčík, 2018. "Determinants of Real Estate Prices in the Statutory City of Brno," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 66(4), pages 991-999.
    • Handle: RePEc:mup:actaun:actaun_2018066040991
    DOI: 10.11118/actaun201866040991
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    References listed on IDEAS

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    1. Jan Čadil, 2009. "Housing price bubble analysis - case of the Czech republic," Prague Economic Papers, Prague University of Economics and Business, vol. 2009(1), pages 38-47.
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    8. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
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