Factors that affect the market prices of flat renting
Factors that affect the market prices of flat renting

Author(s): Roman Brauner, Sylvia Plottová
Subject(s): Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: financial system; interest rate; prices of flat renting; central banks; inflation;
Summary/Abstract: This paper aims to investigate the factors influencing the level of market prices of flat renting in the Czech Republic, more precisely on big cities such as Prague or Brno. Firstly, it analyzes the development of market rent prices over the last 7 years and examines the specific factors which influenced this period. The subject of the research is also the relation of the difference in the development of the market prices rental according to flat size. In the paper we also focus on the influence of non-standard real estate price development behavior in cooperation with a significant decrease in interest rates on mortgage loans. An integral part of the comparison is the development of market rent prices with other markets bringing regular dividends, especially capital markets, or dependence on the development of alternative investments such as precious metals. On the basis of the achieved results, the conclusion predicts the future development of the market rentals in the Czech Republic.

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