© 2022 Published by VŠB-TU Os a a. All igh s ese ed. ER-CEREI, Volume 25: 69-75 (2022).
ISSN 1212-3951 (P in ), 1805-9481 (Online)
De e mina ion o he capi aliza ion a e in he
selec ed a eas o he Czech Republic
Hana JANÁČKOVÁa
*
, Jose KAŠÍKb
a Depa men o Economics, Facul y o Economics, VŠB - Technical Uni e si y o Os a a, Sokolská řída 33, 702
00 Os a a, Czech Republic.
b Depa men o Business Adminis a ion, Facul y o Economics, VŠB - Technical Uni e si y o Os a a, Sokolská
řída 33, 702 00 Os a a, Czech Republic.
Abs ac
This a icle aims o calcula e he capi aliza ion a e in selec ed a eas o he Czech Republic based on da a ob ained
om ac ual sales in he eal es a e ma ke . The pu pose is o make a spa ial compa ison and de e mine whe he a eas
wi h highe isk le els also show highe capi aliza ion a es in line wi h heo e ical assump ions. Fo selec ed u ban
dis ic s o Os a a, a compa ison o e ime was also unde aken ollowing simila esea ch ca ied ou ou yea s
ago. As he capi aliza ion a e is also pa o he alua ion o dinance, a compa ison was made be ween he capi ali-
za ion a e s a ed in he o dinance and he calcula ed alues.
Keywo ds
Capi aliza ion a e, income app oach, eal es a e, alua ion
JEL Classi ica ion: R310, R210
*
hana.janacko a@ sb. cz (co esponding au ho )
Ekonomická e ue - Cen al Eu opean Re iew o Economic Issues 25, 2022
70
De e mina ion o he capi aliza ion a e in he
selec ed a eas o he Czech Republic
Hana JANÁČKOVÁ, Jose KAŠÍK
1. In oduc ion
The alua ion o eal es a e is a opical issue ha is o
in e es o many people, no only in he Czech Republic
(B adáč e al., 2009, 2016; O , 2014; Zaz onil, 2013)
bu also wo ldwide (Be s and Glickman, 2013;
Wiedeme and Bake , 2012; Wiedeme and Goe e s,
2011). A he same ime, i is a opic wi h signi ican
p ac ical applica ion because, e e y day, i is necessa y
o alue many pieces o eal es a e o a ious easons.
These easons o he alua ion o immo able p ope y
include, o example, ans e s o owne ship and inhe -
i ance p oceedings, which a e associa ed wi h a p op-
e y’s en y in o he land egis e , he en y o immo a-
ble p ope y in o a comme cial es ablishmen , a pledge
o a bank, insu ance, exp op ia ion, se lemen o dam-
ages, and so on. Depending on he eason o he alu-
a ion, he me hods o alua ion a e de ined acco ding
o he cu en Ac No. 151/1997 Coll. on he Valua ion
o P ope y. Valua ion is mainly ca ied ou using he
compa ison me hod. Howe e , i a sui able sample is
no a ailable on he ma ke o compa ison and/o he
p ope y does no b ing he owne income/ en , one o
he main me hods is he income app oach, which uses
he capi aliza ion o ne ope a ing income (ne
p o i / en ) o calcula e he usual p ice (ma ke alue)
o he immo able p ope y. One o he key ac o s in
calcula ing alue using his me hod is he app op ia e
de e mina ion o he capi aliza ion a e. E en hough
many a icles and pape s ha e been w i en on his opic
(A dielli e al., 2016; Sla a a e al., 2014; S e ano o á
and Pe e ko á, 2014; S e ano o á and P ocházka,
2014), he as majo i y o hem ha e based hei cal-
cula ions no on ac ual p ices achie ed bu on o e
p ices in ad e isemen s. Howe e , i is clea ha he
p ice ac ually paid may di e signi ican ly om he
o iginal o e p ice ( he alue demanded by he selle ).
We can see a educ ion bu also cu en ly an inc ease
(when he e a e so many in e es ed pa ies ha he p op-
e y is sold a a highe p ice han he o iginally ad e -
ised o e p ice). Thus, u he esea ch ha is being
in ensi ely conduc ed in he wo ld, ocusing no only
on he calcula ion o he capi aliza ion a e bu also on
he main de e minan s o he capi aliza ion a e, seems
o be in e es ing (La i a and Linneman, 2022).
This pape de e mines he capi aliza ion a e using
unbiased inpu da a o ac ual p ices based on p ice da a
a ailable om he Land Regis y and en s o e a ce -
ain pe iod in a selec ed ci y o minimize he inaccu acy
in i s calcula ion. This capi aliza ion a e o ma ke eal
es a e alua ion (speci ically la s in selec ed pa s o
Os a a and in he ci ies o Ka iná and Kladno) can
subsequen ly be used in hei speci ic business ac i i-
ies no only by app aise s o eal es a e agencies ope -
a ing in he Czech Republic unde Ac No. 455/1991
Coll. on T ade Licensing (T ade Licensing Ac ) bu
also by alue expe s, app aisal o ices and app aisal
ins i u es ope a ing unde special egula ions (Ac No.
254/2019 Coll.).
The objec i es o his a icle can be di ided in o
h ee a eas. The i s objec i e is o answe he esea ch
ques ion o whe he , in line wi h heo e ical assump-
ions, a eas wi h highe le els o isk (in e ms o long-
un achie emen o expec ed en s) also exhibi highe
capi aliza ion a es han a eas wi h lowe le els o isk.
The second objec i e is o compa e he cu en le el o
he capi aliza ion a e in selec ed u ban a eas o Os a a
wi h he p e iously calcula ed le el (speci ically in
2018) in he same u ban a eas (Kašík and Janáčko á,
2018). Finally, he hi d objec i e is o compa e he cal-
cula ed alues o he capi aliza ion a e wi h he capi-
aliza ion a e es ablished in Valua ion Dec ee No.
441/2013 Coll. as amended o he legally equi ed ad-
minis a i e alua ion pu poses.
2. Theo e ical basis o eal es a e alua ion
Be o e we p oceed o speci ic cases ela ed o he issue
o eal es a e alua ion, we conside i necessa y o de-
ine he undamen al concep s and o lis he basic ap-
p oaches cu en ly used in he alua ion o eal es a e
no only in he Czech Republic bu also ac oss he
wo ld.
2.1 Basic concep s
The i s concep is eal es a e o , mo e p ecisely, im-
mo able p ope y, which is de ined in Sec ion 498(1)
o Ac No. 89/2012 Coll., he Ci il Code. Acco ding o
his law, immo able p ope y is “land and unde g ound
s uc u es wi h an independen pu pose, as well as p op-
e y igh s o hem, and igh s ha a e decla ed by law
o be immo able p ope y. I he law s ipula es ha a
ce ain hing is no pa o he land and i such hing
H. Janáčko á, J. Kašík - De e mina ion o he capi aliza ion a e in he selec ed a eas o he Czech Republic
71
canno be ans e ed om place o place wi hou io-
la ing i s essence, such hing is also immo able.”
O he impo an concep s o dis inguish a e p ice
and alue. The p ice o immo able p ope y is he i-
nancial amoun nego ia ed in he eal es a e ma ke
h ough he in e ac ion o supply and demand. Value is
a mo e gene al e m han p ice. The alue o an immo -
able p ope y de i es om he deg ee o u ili y, ha is,
he abili y o he asse o sa is y indi idual human
needs, wan s o desi es. Value in he indi idual subjec-
i e sense indica es ha each p ope y may ha e one o
mo e u ili y alues. Fi s ly, he e is he u ili y alue o
he owne : he ul ilmen o he pu pose o he immo -
able p ope y o which he eal es a e was acqui ed;
secondly, he e is he emo ional alue o he owne
( he p ope y was inhe i ed o dona ed, he p ope y is
ied o memo ies, e c.). The immo able p ope y also
has alue o o he subjec s as i is se in and in luenced
by i s en i onmen . In mee ing he needs o nonowne s,
immo able p ope ies can ha e social alue (hospi als,
schools), cul u al alue ( hea es, cinemas, galle ies),
spo s alue (s adiums, swimming pools), his o ical
alue (cas les, cha eaux), eligious alue (chu ches,
monas e ies, chapels), public alue ( oads, in as uc-
u e, sewage ea men plan s, public buildings – o -
ices, pa liamen , municipal o ices) and, las bu no
leas , aes he ic alue (a chi ec u al buildings and land-
ma ks).
Thus, alue e lec s he p oposi ion, while p ice is
he eali y achie ed in he ma ke . Value, he e o e, ex-
p esses he u ili y o bene i on he da e on which he
es ima e o alue is made. The opinion o he alue o
a single immo able p ope y is exp essed by se e al
pa ies, o example in e es ed pa ies, app aise s and
selle s, whose ideas may di e and only in he cou se
o nego ia ions and a he ime o he exchange will
hese ideas esul in a speci ic p ice. The ealiza ion o
he exchange in a ma ke en i onmen leads o he ul-
ilmen o he pa ies’ expec a ions ega ding he ex-
change alue, which esul s in he o ma ion o a ma -
ke p ice. A he same ime, as indica ed abo e, he e
a e se e al ca ego ies o alue depending on how hey
a e de ined and on which p ope y o he immo able
p ope y hey ocus (e.g. book alue, u ili y alue, in-
come alue, ma ke alue, social alue, o e alue,
e c., each o which can be exp essed in a di e en mon-
e a y amoun ). The e o e, when no only aluing eal
es a e, i is always necessa y o de ine he alue ha is
being de e mined (Dušek, 2010). When de ining he
ma ke alue, i is possible o ely on he In e na ional
Valua ion S anda ds, in which he ma ke alue is de-
ined as “ he es ima ed amoun o which an asse
should be exchanged a he alua ion da e be ween a
willing buye and a willing selle in a ansac ion be-
ween sepa a e and independen pa ne s a e app op i-
a e ma ke ing, in which bo h pa ies would ac in an in-
o med, easonable, and non-p essu ed manne ”. The
cu en Czech legisla ion as o 1 Janua y 2021 also al-
eady knows he concep o ma ke alue. Ac No.
237/2020 Coll., amending Ac No. 151/1997 Coll., de-
ines he ca ego y o alue as ollows: “Fo he pu -
poses o his Ac , ma ke alue means he es ima ed
amoun o which he p ope y o se ice should be ex-
changed on he alua ion da e be ween a willing buye
and a willing selle , in a comme cial ansac ion ca ied
ou in acco dance wi h he ma ke de achmen p inci-
ple, a e p ope ma ke ing, whe e each pa y has ac ed
in an in o med and p uden manne and no unde du-
ess”.
In his con ex , i is wo h men ioning ha , in he
Czech Republic, i is possible o dis inguish wo basic
ypes o alua ion (mo e p ecisely, app aisal) o eal es-
a e. Acco ding o he cu en ly alid p ac ices, hey a e
called:
• adminis a i e o o icial alua ion, which
esul s in a p ice de e mined (adminis a-
i e) acco ding o he applicable p ice eg-
ula ion o Ac No. 151/1997 Coll., as
amended;
• ma ke alua ion, which mos o en esul s
in a usual p ice (ma ke alue).
Ano he concep is he capi aliza ion a e, which is
gene ally de ined in he In e na ional Valua ion S and-
a ds as “ he di iso (usually exp essed as a pe cen age)
used o con e e u ns o alue” (In e na ional Valua-
ion S anda ds Commi ee, 2007). This di iso is e y
closely ela ed o he amilia p ocess o discoun ing u-
u e e u ns, in which he e is ma hema ical co espond-
ence be ween he capi aliza ion o mula and he dis-
coun o mula o he so-called pe pe ual annui y, ha
is, a heo e ically ne e -ending s eam o income o a
cons an amoun . Thus, in he con ex o calcula ing he
income alue o immo able p ope y, i is he numbe
by which we di ide he u u e annual ne ope a ing in-
come (ne p o i ) om en s o ob ain he income alue
o he immo able p ope y. F om a di e en pe spec-
i e (i we know he alue o he immo able p ope y
and he ne income, as in he case o ou analysis), i is
he ne a e o e u n o p o i abili y o he in es men
(in ou case, he p o i abili y o he immo able p op-
e y). The a e o capi aliza ion o adminis a i e alu-
a ion pu poses is se in he cu en p ice egula ions in
Annex 22 a 5.5% o la s in s anda d blocks o la s
and 4.5% o la s in non-s anda d blocks o la s, wi h
he possibili y o an inc ease o up o hal a pe cen age
poin . Howe e , hese alues a e wi hou dis inc ion e-
ga ding loca ion in he Czech Republic (Dec ee No.
441/2013 Coll.).
Ekonomická e ue - Cen al Eu opean Re iew o Economic Issues 25, 2022
72
The las concep o be de ined as necessa y o cal-
cula ing he capi aliza ion a e is he ne ope a ing in-
come, in his case om en . The ne ope a ing income
can be de ined as he di e ence be ween, on he one
hand, all he income o e enues ha can be expec ed
o a ise om he owne ship o he p ope y and, on he
o he hand, he expenses o cos s ha a e likely o be
associa ed wi h he owne ship and use o he p ope y,
always ela ed o a ce ain pe iod, usually one yea
(Zaz onil, 2004). The po en ial en (con ac ual o po-
en ially achie ed) ha can be expec ed o be achie ed
a a gi en ime and place is sub ac ed om he po en-
ial en and ope a ing expenses. These cos s a e he pe-
iodic, o eseeable, easonable, objec i e and o al cos s
necessa y o he p ope ope a ion o he immo able
p ope y, which can be expec ed o con inue o be in-
cu ed a e he change o owne ship. These cos s may
be di ided in o ixed and a iable cos s. Fixed cos s a e
p ope y ax, insu ance, was e cha ges, managemen
cos s, enewal und and so on. Va iable cos s can in-
clude paymen s o u ili ies, hea ing and he like.
2.2 Basic app oaches used in he alua ion o im-
mo able p ope y
The basic app oaches ha can be used o eal es a e
alua ion include:
• cos app oach,
• income app oach,
• compa a i e app oach.
The basic idea o he cos app oach is ha he alue
o an immo able asse can be de i ed om he amoun
ha we would cu en ly ha e o spend o build he pa -
icula immo able p ope y, aking in o accoun i s
physical and mo al dep ecia ion. The income app oach
ocuses on he amoun o he achie able u u e income
s eam om he immo able p ope y (ne en al income
o p o i ), which is discoun ed o he p esen alue us-
ing a capi aliza ion a e. The compa a i e alua ion
(app aisal) app oach is pe o med by compa ing he
p ope y wi h simila eely saleable p ope ies sold a
he same ime and place based on a numbe o aspec s:
ype and pu pose, layou , ma e ials, echnical pa ame-
e s, quali y o design, a ailabili y, size, usabili y, loca-
ion in he a ea and mani es a ions o he su oundings.
Fo he usual p ice, he compa ison includes he sale
p ices, and o he ma ke alue, i includes he o e
p ices ( alues) om eal es a e se e s.
This pape will use he compa a i e and income ap-
p oaches, speci ically he income alue and compa a-
i e alue me hods, which a e desc ibed in de ail in he
ollowing sec ion.
3. Me hodology and da a used
This a icle will use he ac ual achie ed p ices o eal
es a e (speci ically la s in p i a e owne ship), which
ha e been de i ed om achie ed p ice da a om he
Land Regis y, o de e mine he capi aliza ion a e used
in income p ope y alua ion. A compa a i e app oach
will be used o selec he sample o dwellings. A basic
ela ionship can be used o calcula e he income alue:
𝑉𝐻 =𝑧
𝑢 (1)
whe e 𝑉𝐻 is he calcula ed income alue o he p op-
e y, 𝑧 is he ne en al income pe yea and u is he an-
nual capi aliza ion a e a a gi en loca ion and ime. The
capi aliza ion a e can hen be de i ed by knowing he
ac ual p ices o speci ic p ope ies a a gi en place and
ime and he amoun o ne en al income (B adáč,
2008):
𝑢𝑖=𝑧𝑖
𝐶𝑃𝑖 (2)
whe e 𝑢𝑖 is he calcula ed capi aliza ion a e, 𝑧𝑖 is he
ne en al income and 𝐶𝑃𝑖 is he sale p ice (all o he
speci ic p ope y). Based on hese indi idual calcula-
ions, we can hen calcula e he a e age capi aliza ion
a e a a gi en loca ion and ime as:
𝑢 = ∑𝑢𝑖
𝑛
𝑖=1
𝑛 (3)
whe e 𝑛 is he o al numbe o p ope ies.
Fo he analysis, ac ual da a on eal es a e p ices
achie ed in he second hal o 2021 and he i s hal o
2022 in selec ed a eas o he Czech Republic we e used
om nego ia ed p ices a ailable om he Land Regis-
y. Indus ial ci ies we e included in he compa ison.
Speci ically, he s a u o y owns o Ka iná and Kladno
and selec ed dis ic s o Os a a we e included. Ka iná
and Kladno ha e a 30-minu e (app ox. 30 km) com-
mu e o a majo ci y (Os a a and P ague). Selec ed u -
ban dis ic s o he S a u o y Ci y o Os a a (Po uba
and Os a a Sou h) we e included o compa ison o e
ime wi h 2018, when simila esea ch was conduc ed.
Fo he calcula ion o he capi aliza ion a e, p i a ely
owned one-bed oom o wo-bed oom la s anging
om 53 m2 o 78 m2 (sui able o amilies) in high- ise
panel blocks o la s wi h a li buil om he 1970s and
1980s onwa ds ( his is he so-called second-hand ma -
ke o la s) we e selec ed in all he ci ies.
We excluded sales associa ed wi h he e ec s o ex-
ao dina y ma ke ci cums ances, he pe sonal ci cum-
s ances o he selle o buye and he e ec s o special
conside a ion, no s a ed p ice o ans e s o coope a-
i e owne ship o pe sonal owne ship. Table 1 shows
he numbe o la s in he selec ed a eas ha we e in-
cluded in he calcula ion o he capi aliza ion a e.
H. Janáčko á, J. Kašík - De e mina ion o he capi aliza ion a e in he selec ed a eas o he Czech Republic
73
Table 1 Numbe o selec ed la sales in selec ed a eas o he
Czech Republic
A ea
Numbe o sale p ices o la s
Ka iná
25
Kladno
25
Os a a – Sou h
30
Os a a – Po uba
30
To al
110
We used simila c i e ia o hose employed o sam-
ple sales p ices o compa e en s. The a ea o he la in
m2 and he ne en pe m2 we e a ailable; we ob ained
hese da a h ough ou esea ch om o e s om es a e
agen s and concluded en al ag eemen s.
4. Resul s
Table 2 clea ly shows he esul s, i.e. he calcula ed a -
e age p ices, en s, and capi aliza ion a es in he se-
lec ed a eas.
Table 2 A e age capi aliza ion a es in selec ed egions o he
Czech Republic
A ea
A e age
selling
p ice
(CZK/m2 )
A e age
mon hly.
en
(CZK/m2 )
A e -
age
capi al-
iza ion
a e
(%)
Min. and
max. cap-
i aliza ion
a es (%)
Ka iná
23,208
113
5.80
4.30-8.60
Kladno
74,286
249
3.90
2.40-5.20
Os a a
Sou h
43,590
164
4.50
3.53-5.92
Os a a –
Po uba
54,128
160
3.75
2.83-4.35
Os a a
Sou h
(2018)
21,411
80
4.522
3.98-5.69
Os a a –
Po uba
(2018)
24,956
80
3.885
3.18-4.48
Sou ce: The au ho s’ own elabo a ion and calcula ions, da a on
eques om he Land Regis y, KAŠÍK, J., JANÁČKOVÁ, H.
(2018)
The ollowing conclusions can be d awn om he
abo e able. A compa ison o he s a u o y ci ies o
Ka iná and Kladno shows ha he ci y wi h he highe
a e age capi aliza ion a e is Ka iná. This conclusion
is consis en wi h he heo e ical assump ions ha eal
es a e loca ed in a eas wi h a highe isk le el (in his
case, he isk associa ed wi h achie ing he expec ed
en ) has a highe capi aliza ion a e. S a is ics om he
Minis y o Labou and Social A ai s show ha , in
June 2022, he sha e o unemployed pe sons (SUP) in
Ka iná was 9.9%. In con as , in Kladno, he alue o
he same indica o in June 2022 was 5.1%. The a e age
g oss mon hly sala y in he Cen al Bohemian Region
in Q4 2021 was CZK 40,501 and was mo e han CZK
4,000 highe han ha in he Mo a ian–Silesian Re-
gion, whe e i was CZK 36,463. The s a is ics also
show a highe numbe o o ences and selec ed c imes
egis e ed by he Police o he Czech Republic in he
ci y o Ka iná, namely one c ime o ence pe 1,000
inhabi an s in Ka iná and 96 o ences pe 1,000 inhab-
i an s in Kladno (Police o he Czech Republic, 2022).
As a as he selec ed pa s o Os a a a e con-
ce ned, he a ea wi h he highes p ices pe m2 and he
lowe capi aliza ion a e is Po uba, and his has no
changed o e ime. I is a highly desi able a ea. I is a
cadas al a ea in he wes e n cen e o he egional ci y,
wi h excellen accessibili y o all classes o oads and
widesp ead and equen public anspo ( ams and
buses), all ci ic ameni ies, including o ices, cou and
an indoo and an ou doo swimming pool as well as el-
a i ely clean ai due o i s highe loca ion on he hill
and dis ance om LIBERTY Os a a a.s. (known as
“No á huť”). The capi aliza ion a es ela i e o he ne
en le el a e lowe han in he second selec ed a ea,
Os a a Sou h.
Os a a Sou h has lowe p ices pe m2 and, a he
same ime, highe capi aliza ion a es. I is he sou h-
e n pa o he egional ci y. This a ea also has all he
ameni ies and quick access o he egional ci y cen e.
Howe e , he e a e in amous esiden ial ho els housing
a socially weak and maladjus ed popula ion due o he
de elopmen o he housing supplemen sys em in he
Czech Republic. Os a a Sou h is also close o a la ge
indus ial en e p ise emi ing ai pollu an s and has a
lowe al i ude (and hence a highe equency o smog
han Po uba).
In he selec ed ci ies, he iskies a eas ha e a capi-
aliza ion a e o up o 8.6% and hus a payback pe iod
sho e han 12 yea s. The lowes capi aliza ion a es
oday a e 2.4%, and he payback pe iod o buying a
home is o e 40 yea s.
When compa ing he calcula ed alues wi h he cap-
i aliza ion a e, which is se a 5.5% in Annex 22 o he
cu en p ice egula ion o la s in s anda d blocks o
la s o he pu poses o adminis a i e alua ion, we
ind ha he closes o his alue is in he ci y o Ka -
iná, whe e he calcula ed a e age capi aliza ion a e
eaches 5.8%. In he ci y o Kladno, he capi aliza ion
a e in he p ice egula ion is only close o he uppe
ange o he calcula ed alues. In addi ion, in he se-
lec ed dis ic s o Os a a, he calcula ed alues o he
capi aliza ion a e di e ela i ely om he alue o i-
cially es ablished by he alua ion dec ee. As a as he

Ekonomická e ue - Cen al Eu opean Re iew o Economic Issues 25, 2022
74
compa ison o e ime in his a ea is conce ned, i can
be deduced om he calcula ed alues ha he p ices o
la s ha e mo e han doubled in ou yea s and he o e
p ices o en s ha e doubled. The capi aliza ion a es
ha e emained almos unchanged o e ime in he se-
lec ed a eas o Os a a.
5. Discussion
The esul s ob ained a e di icul o compa e wi h hose
epo ed in some p e iously published s udies on a sim-
ila opic (A dielli e al., 2016; S e ano o á and Pe-
e ko á, 2014; S e ano o á and P ocházka, 2014). As
al eady men ioned in he in oduc ion, unlike he e-
sea ch men ioned abo e, ou analyses a e based on ac-
ual p ices ob ained om he Land Regis y da a. Fu -
he mo e, i should be poin ed ou ha some s udies
(e.g. A dielli e al., 2016) ocused on he calcula ion o
g oss capi aliza ion a es; ha is, hey did no include
he cos s associa ed wi h holding eal es a e (main e-
nance, insu ance, eal es a e ax, e c.), and his is one o
he easons why hei esul s a e highe (e.g. his g oss
capi aliza ion a e is be ween 4.1% and 8% o Po uba
and be ween 8.1% and 12% o H abů ka and Výško -
ice). Ano he impo an ac o is ime, wi h he econ-
omy ha ing expe ienced a educ ion in base in e es
a es in he pas , which ended a he beginning o 2021.
The g ow h in p ope y p ices is slowing and is g adu-
ally being accompanied by an inc ease in en al p ices,
p ima ily due o he long- e m na u e o ime-lagged
leases. Since 2020, he Czech Republic has been acing
iscal expansion in he o m o la ge s a e budge de i-
ci s. F om 2021 onwa ds, economic en i ies ha e aced
a global inc ease in ene gy p ices, which has also led o
he collapse o Czech p o ide s wi h a signi ican ma -
ke sha e. Las bu no leas , he Czech Republic is ex-
pe iencing an ex e nal shock s emming om he e ec s
o he wa in Uk aine. The ac s men ioned abo e and
p essu es in he labou and p ope y ma ke s a e push-
ing consume p ice g ow h o 17.2% (annual a e as o
June 2022 as measu ed by he Czech P ope y In es -
men ), he as es in h ee decades (Czech S a is ical O -
ice, 2022). Wi h he cu en high in la ion a e and he
Czech Na ional Bank aising in e es a es, we can see
a cooling o he mo gage ma ke in 2022, which is as-
socia ed wi h a slowdown in p ope y p ice g ow h.
This has educed he eal e u n on mos cu en in es -
men s and hus also on esiden ial in es men s, which
may be nega i e in he sho e m. I appea s ha he
objec i e o eal es a e in es o s a he momen may e-
main he app ecia ion o in es ed unds h ough en al
income and hus he p o ec ion o a ailable unds
agains alling in la ion a es bu also possible specula-
ion linked o he inc ease in he p ice o eal es a e o e
ime and he inc ease in he e u n on he sale o eal
es a e in he u u e, which, howe e , may be highly un-
p edic able gi en he cu en in la ion and he associ-
a ed unce ain y in he ma ke s.
6. Conclusion
The capi aliza ion a e is a necessa y inpu in he calcu-
la ion o he income alue o p ope y. The au ho s o
he pape de e mined he capi aliza ion a e o p i-
a ely owned la s in selec ed ci ies (Ka iná and
Kladno) and selec ed u ban dis ic s o Os a a (Po uba
and Os a a Sou h) based on ac ual p ices and ne en s
as well as he capi aliza ion a e o he gi en ype o
eal es a e in 2021 and 2022 using he di ec capi aliza-
ion me hod. The pu pose was o compa e he calcu-
la ed capi aliza ion a es in he selec ed a eas and o ex-
plain any di e ences in hei amoun in e ms o space
and ime in he u ban dis ic s o Os a a. The esul s
con i med he in luence o p ice ( he le el o demand
o eal es a e in a gi en a ea) and isk ( he mo e a ac-
i e he a ea, he lowe he isk) on he capi aliza ion
a e. In less isky a eas, whe e p ices a e ela i ely
highe , he capi aliza ion a e is lowe han in ela i ely
iskie a eas. This ac is e lec ed bo h when compa -
ing he ci ies o Ka iná and Kladno and when compa -
ing pa s o Os a a. The esul ing capi aliza ion a es
can be used in alua ion p ac ice when calcula ing he
usual p ice (ma ke alue) o immo able p ope y.
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