R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing DemandReturn

The article aims to calculate the capitalization rate in selected cities of the Czech Republic based on data obtained from actual sales in the real estate market. The objective of this article is to answer three research questions. The first research question is whether, in line with theoretical assumptions, areas with higher levels of risk (in terms of long-run achievement of expected rents) will also exhibit higher capitalization rates than areas with lower levels of risk. The second research question is how the capitalization rate in selected urban areas of Ostrava changed as compared to its previously calculated level (specifically in 2018) in the same urban areas. Finally, the third research question is whether the calculated values of the capitalization rate will be different from the capitalization rate established in the Valuation Decree No. 441/2013 Coll. as amended for the legally required administrative valuation purposes.