Abstract
This article deals with the study of the dependence between selected technical and socioeconomic factors in the real estate market that affects the return on investment. These factors include the average annual rental yield, sale/rental price for an apartment, the number of ads related to the sale/rental of apartments per 1000 inhabitants, the number of new apartment ads per 1000 inhabitants, and the share of persons facing distraint. Data from the EVAL software were used for calculation. EVAL software was developed by one of the authors of this article and allows the collecting of advertisements promoting real estate for sale and rental in the Czech Republic. This article uses data for individual districts in the Czech Republic. The article uses the methods of descriptive and mathematical statistics. The dependencies between technical and economic parameters are investigated using regression analysis. Significant dependencies were identified between the following parameters: Between selling price of an apartment and the average annual rental yield; Between the average annual rental yield and the average number of months needed to pay for the apartment; Between the average annual rental yield and the share of individuals facing distraint, and between the selling price of an apartment and the price of an apartment for rent.
Highlights
In the era of COVID-19, real estate serves as a secure store of financial value for many small and large investors
The real estate market is affected by corporate capital and has an impact on corporate finances
The outputs used in this article are based on data provided by EVAL software
Summary
In the era of COVID-19, real estate serves as a secure store of financial value for many small and large investors. Investing in real estate concerns both private investors and large companies and developers. The real estate market is affected by corporate capital and has an impact on corporate finances. The acquisition of residential real estate for rent is becoming an interesting investment opportunity for institutional investors. Two completely identical properties have a different market value if one or more technical, economic, and social factors are different. These may include, e.g., workplace accessibility, time spent in public transport, the socioeconomic environment in which the property is located, the age of the property, building material, and so on. This article examines some of these factors in more detail and provides a guide for the company investor to acquire a suitable property for rent where a reasonable return on investment can be achieved while accepting reasonable risk, so that investors, the banking sector, and companies which need information about property yields can make the right decisions
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