What determines the Czech land market prices? Some regional findings

Abstract

The paper deals with the analysis of market land prices that were collected from land purchased contracts in the Czech Republic. Regression model was used to identify determinants explaining variability of market prices between 2008 and 2009. It was found out that type of plantation, region, type of buyers, plot size, distance to regional city or number of parcels play significant role. These factors explain more than a half of variance in land price. Quality of land that was expressed through administrative price has significant effect on market price. Yet, such effect became less import in regions nearby cities (e.g. Prague and Olomouc), where the market land price is significantly influenced by the distance to the district city. Land reform, however has not been confirmed to stimulate higher prices for sellers. It is reasonable to expect that part of the remaining variation could still be accounted for by non-random variables.