Comparison of the development of purchasing power in the purchase of residential units in selected locations in Bohemia and Germany

David Opočenský

Purchase of residential units represents one of the greatest cost in life of average people. This title solves differences between flats purchaising for different nations which live in different standard of living. This title compares price level of flat units in year 2013 and 2014 in selected areas in Bohemia and Germany and compares this price level to net wage. This comparison should bring basic idea about situation on housing markets in selected areas. From evolving costs of properties we can notice slight increase of them during the period. But this increase is more significant than increase of salaries. Inflation is the next factor that can have an influence on the demand of properties and in the last decade is getting higher. According to increasing difference between the evolving costs of flats and the salaries, we can determine unequal development of each of them. From amount of demands, amount of sales and the highest price of properties in 2007-2008 is noticeable that there are other factors than inflation, for example a demographic change of inhabitants. In the last few years, specially from 2006, there is also increasing number of mortgages.

Price level; compare; housing markets; net wage.