Our consulting services also include the development of a comprehensive market analysis of the premium real estate segment in a specific location, which is first presented to the client’s in detail. The analysis continues with an overview of the current situation in the real estate market. Our market research is based primarily on our unique data, acquired from our own non-public database, which we process using our own exclusive calculation methodology. We take into account the ratio of the housing unit’s exterior to its interior, as well as its standard. We always rely on the actual achieved real estate transaction prices.
We also work with the Rental Price Index of Svoboda & Williams + VŠE, an analytic tool that we develop in cooperation with the Faculty of Informatics and Statistics of the University of Economics in Prague, which monitors the growth of rents in Prague’s premium property market. We present our data and findings in our biannual Market Report.
The analysis is based on data obtained from the database of properties offered by Svoboda & Williams in the monitored period. Sales transactions are supplemented by data on property sales from the Cadastre of Real Estate with parameters that correspond to the monitored sample.
The real estate prices and rents that we work with are the actual achieved values of the transactions. We don’t monitor asking prices. To calculate the price per sq. m., we take into account the price for parking, which we subtract from the achieved sales price, and we add a portion of the exterior (terraces, balconies, loggias, and gardens) to the total area of the unit (in accordance with the new Civil Code). To recalculate the total area of the exterior, we use a specially developed algorithm that progressively reduces this area and takes into account the ratio of the exterior area to the interior area.
The data for this index is based on the actual achieved rents for apartments offered by Svoboda & Williams (annually around 1,500 properties in Prague 1–10 with layouts from studio to five-bedrooms). Since these are products with varying prices, we apply a summarizing index to track the development of the prices. It works in the same way as the Czech Consumer Price Index maintained by the Czech Statistical Office, which measures inflation.