Comparison and causes of residential property prices in Prague

This bachelor thesis focuses on the identification of the factors influencing the development of residential property prices in ten selected European countries (Switzerland, England, France, Germany, Spain, Austria, Italy, Poland, Slovakia and the Czech Republic) in the period 2013-2023. The introductory part of the thesis defines the real estate market and summarizes the development and current trends in the housing sector in each of the countries under study. In the empirical part, a correlation analysis is performed between the evolution of the average house price, calculated from the Housing Price Index, and selected economic indicators, including interest rates set by national banks or the European Central Bank, GDP at market prices, crime rates, annual net income in euro, inflation measured by the HICP, unemployment rate, number of building permits issued (in millions m²) and real GDP growth. The data were obtained from international databases such as Eurostat, OECD and Trading Economics. The results of the analysis show that interest rates and GDP are among the most important factors influencing house prices, while the number of building permits issued has a rather weak impact on house prices across countries.