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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| Format: | Article |
| Language: | English |
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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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| _version_ | 1823858050493054976 |
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| author | Laima Okunevičiūtė Neverauskienė Dominykas Linkevičius Daiva Andriušaitienė |
| author_facet | Laima Okunevičiūtė Neverauskienė Dominykas Linkevičius Daiva Andriušaitienė |
| author_sort | Laima Okunevičiūtė Neverauskienė |
| collection | DOAJ |
| description |
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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| format | Article |
| id | doaj-art-6d9161a359554ddaad280e3e17b852ce |
| institution | Kabale University |
| issn | 2669-2481 2669-249X |
| language | English |
| publishDate | 2025-02-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Business, Management and Economics Engineering |
| spelling | doaj-art-6d9161a359554ddaad280e3e17b852ce2025-02-11T16:30:31ZengVilnius Gediminas Technical UniversityBusiness, Management and Economics Engineering2669-24812669-249X2025-02-0123110.3846/bmee.2025.22663How macroeconomic factors impact residential real estate prices in Eastern EuropeLaima Okunevičiūtė Neverauskienė0Dominykas Linkevičius1Daiva Andriušaitienė2Department of Business and Management, Vilnius Gediminas Technical University, Vilnius, Lithuania Department of Business and Management, Vilnius Gediminas Technical University, Vilnius, Lithuania Department of Business and Management, Vilnius Gediminas Technical University, Vilnius, Lithuania 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. https://btp.vilniustech.lt/index.php/BMEE/article/view/22663real estatemacroeconomicpricesinterest ratesunemployment rateGDP growth |
| spellingShingle | Laima Okunevičiūtė Neverauskienė Dominykas Linkevičius Daiva Andriušaitienė How macroeconomic factors impact residential real estate prices in Eastern Europe Business, Management and Economics Engineering real estate macroeconomic prices interest rates unemployment rate GDP growth |
| title | How macroeconomic factors impact residential real estate prices in Eastern Europe |
| title_full | How macroeconomic factors impact residential real estate prices in Eastern Europe |
| title_fullStr | How macroeconomic factors impact residential real estate prices in Eastern Europe |
| title_full_unstemmed | How macroeconomic factors impact residential real estate prices in Eastern Europe |
| title_short | How macroeconomic factors impact residential real estate prices in Eastern Europe |
| title_sort | how macroeconomic factors impact residential real estate prices in eastern europe |
| topic | real estate macroeconomic prices interest rates unemployment rate GDP growth |
| url | https://btp.vilniustech.lt/index.php/BMEE/article/view/22663 |
| work_keys_str_mv | AT laimaokuneviciuteneverauskiene howmacroeconomicfactorsimpactresidentialrealestatepricesineasterneurope AT dominykaslinkevicius howmacroeconomicfactorsimpactresidentialrealestatepricesineasterneurope AT daivaandriusaitiene howmacroeconomicfactorsimpactresidentialrealestatepricesineasterneurope |