Acta Univ. Agric. Silvic. Mendelianae Brun. 2018, 66, 991-999

https://doi.org/10.11118/actaun201866040991
Published online 2018-08-31

Determinants of Real Estate Prices in the Statutory City of Brno

Vlastimil Reichel, Petr Zimčík

Masaryk University – Department of Economics, Lipová 41a, Brno, Czech Republic

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.

Funding

This paper was supported by the specific research project MUNI/A/0966/2017.

References

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