Historical Perspective of Residential Development and its Impact on the Current Market Prices of Apartments on the Czech Real Estate Market

Historical development of residential housing is likely to have had certain influence on the current market prices of apartments. It is therefore important to ensure that the influence is correctly evaluated and adjusted to eliminate other factors. The influence is identified in relation to the probable motives and preferences relating to demand. The methodology is based on the formation of a comparative database of apartments, as homogeneous as possible, across different periods of construction on the Czech real estate market which can be divided into specific periods of time, each having their own characteristic features. Each database corresponds with a city with distinctive differences defined. The compiled and modified database can be statistically tested using linear parametric and non-parametric models. The findings indicate existence of price differences across the individual periods of construction, and facilitate a formulation of a functional (graphic) expression of the dependence for individual cities as well as an aggregate for the entire Czech market, i.e. a global curve. Subsequently, other possible causes, apart from the demand, are discussed.