The influence of non-price factors on the market with new building - Case study for Warsaw and Prague

This study uses secondary data from the Polish Statistical Office and the Polish National
Bank. Other data is taken from Czech Statistical Office and EUROSTAT. General scientific methods are Granger
causality and multifactor regression.
Scientific aim: The global focus of the article is econometric modeling. A particular center uses these models to
evaluate the impact of factors for which enough data samples are not established. The evaluation of two distinct
regions will estimate the significance of unique factors, their agreement, and possible variations.
Findings: A key indicator of market development is the number of building permits. This variable represents the
novelty of the approach. Previous approaches have defined this change as marginal; the approach presented here shows the number of building permits concerning other real estate market parameters. This article's findings are primarily relevant for the supply and demand side, i.e., for citizens and building companies. Furthermore, the results show a clear link between the number of building permits and economic growth.
Conclusions: GDP growth is a statistically significant factor in the growth in the number of building permits for
the capital city of Warsaw and capital city of Prague. GDP is a common factor for both selected cases. A
statistically significant factor for the case of Warsaw is the Average Wage Index. These factors are significant at
all levels. At lower levels of significance, the Housing Price Index and Number of Inhabitants are significant for
Warsaw. In the case of Prague, it is only the Consumer price index. Granger's causality showed that the GDP
variable is statistically significant for both the case of Warsaw and the case of Prague. In the case of Prague, this
is a dual causality, which has not been confirmed in the case of Warsaw.