Determination of the capitalization rate in the selected areas of the Czech Republic

Abstract

This article aims to calculate the capitalization rate in selected areas of the Czech Republic based on data obtained from actual sales in the real estate market. The purpose is to make a spatial comparison and determine whether areas with higher risk levels also show higher capitalization rates in line with theoretical assumptions. For selected urban districts of Ostrava, a comparison over time was also undertaken following similar research carried out four years ago. As the capitalization rate is also part of the valuation ordinance, a comparison was made between the capitali- zation rate stated in the ordinance and the calculated values.