Comparison of property price development in regions affected by mining with other regions of the CR

Abstract

The property market has experienced a sharp increase in prices recently, which indicates a different nature of the Covid 19 downturn of the economy compared with usual economic crises. This paper identifies key features of the property market which may help understand why the property market performs differently from other markets. A number of factors play an important role in shaping real estate prices, some of which can and cannot be influenced. The quality of the environment is often one of the main important factors, which is also presented by air pollution values. Apart from transport, waste incineration and thermal power plants, the most common causes of air pollution include the mining industry's activities. We aim to explain why property prices do not converge across regions, but prices in expensive regions experience an even stronger price dynamics, a recent phenomenon. We argue that the price dynamics have been predominantly demand-driven in a market with an unelastic and lacking supply of new properties. The real estate market was also significantly affected by the monetary and fiscal policies of individual states. It has been found that money, which has been invested on a large scale in all sectors of the economy in order to limit the negative effects of pandemic measures, has often found its way to investing in assets of all kinds. As a result, real estate prices are rising sharply, especially in richer areas with minimal unemployment. This article aims to offer a deeper insight into the relationship between flats/house prices and variables that proved to be significantly correlated to prices in regional decomposition. Finally, we suggest ways for sustainable future development of the property market.