Analysis of the real-estate market and the mortgage market in the Czech Republic

The topic of this diploma thesis is an analysis of real-estate market and mortgage market in the Czech Republic. The real-estate prices have gone through an extensively dynamic development. This thesis identifies factors, which are divided by causal link into three chapters, which are responsible for the development in the way it occurred. Among the most influential factors, we should mention the existence of short-term accommodation phenomenon through AirBnB platform, a considerable share of investment apartments, high taxation of newly built homes (blocks of flats), and the rigidity of given permissions allowing new buildings to be built. The mortgage market is key part of the thesis without which not many deals would be made. In recent years, tremendous changes have been introduced to the mortgage market by the national regulator and it is unlikely it has finished. The thesis also accents usual effects which affect the debtors, and which have often got a positive influence on their ability to pay their debts. The aim of this thesis is to set recommendations which could aid stabilising the situation on both markets. As far as the author’s knowledge goes, the biggest positive impact on real-estate prices would be achieved by fair regulation of short-term accommodations, an amendment of the Construction Act, progressive and effective taxation for owning a property and a bigger involvement of the government in the real estate development. Due to the matter of the subjects and their individual impacts that are analysed, the thesis is not strictly divided into a theoretical and a practical part. Machine research is widely used due to the matter of the topic and the need to synthesise very up-to-date information.