Property Prices: Analyzing the Effect of Macroeconomic Determinants

Abstract

The goal of this thesis is to analyze the effect of macroeconomic determinants on property prices. We study this topic because property prices are among the interests of central banks especially after the global financial crisis, when financial stability became separate policy in most developed central banks. This topic is also relevant for investors and households in many countries. This thesis aims to determine the influence of selected variables on property prices for 15 European countries during the period from 2008 to 2018. It not only theoretically discusses the impact of property market supply and demand factors on property prices, but also empirically studies how various economic variables determine real estate prices through panel data models.