How macroeconomic factors impact residential real estate prices in Eastern Europe
Purpose – This study examines how GDP growth, interest rates, and unemployment rates influence residential real estate prices in politically and economically stable Eastern Euro- pean countries, aiming to identify key drivers of property value changes in the region. Research methodology – The s...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Vilnius Gediminas Technical University
2025-02-01
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| Series: | Business, Management and Economics Engineering |
| Subjects: | |
| Online Access: | https://btp.vilniustech.lt/index.php/BMEE/article/view/22663 |
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| Summary: | Purpose – This study examines how GDP growth, interest rates, and unemployment rates influence residential real estate prices in politically and economically stable Eastern Euro- pean countries, aiming to identify key drivers of property value changes in the region.
Research methodology – The study uses multiple linear regression and Pearson correlation (r) to assess the relationship between variables and housing prices, with ARIMA (3,1,0) applied for short-term price forecasts based on cyclical time series trends.
Findings – The findings show a strong correlation between macroeconomic indicators and residential real estate prices, with the key influencing factor varying by country, reflecting diverse market sensitivities and regional economic contexts.
Research limitations – The research is limited to Eastern European countries with stable political and economic conditions, excluding those facing instability. Future studies could expand the analysis to include such regions to provide a more comprehensive view.
Practical implications – The results provide valuable guidance for policymakers and investors in crafting strategies tailored to specific macroeconomic conditions, enhancing market predictions and stability.
Originality/Value – By focusing on the underexplored residential real estate market in Eastern Europe, this study contributes novel insights into regional housing price determinants and offers a foundation for further research on macroeconomic impacts in real estate markets.
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| ISSN: | 2669-2481 2669-249X |