Empirical Analysis of Prague Flat Market
|Author:||Bc. Tereza Sklenářová|
|Year:||2015 - summer|
|Leaders:|| Mgr. Tomáš Křehlík M.A., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||The purpose of this work is to model the prices of real estate, concretely of Prague flats,
which belong to the most important economic indicators. In the theoretical part, the main
housing market participants are defined, special features of housing markets are described and
most frequently used valuation methods are discussed. Most attention is focused on so called
hedonic pricing model, which is applied as a base for the pricing equation in the econometric
part. This is carried on various subsets of public available data regarding the characteristics of
Prague flats, using ordinary least squares as well as weighted least squares. Several
hypotheses about the relationship between the price and the explanatory variables are tested
before creating the final model. The results are commented and compared with literature
concerned with the same topic in other locations.