The Evaluation of the Impact of Macroeconomic Indicators on the Performance of Listed Real Estate Companies and Reits

Abstract

Using quarterly data from 2006:Q1 to 2019:Q3 (55 observations), this paper examines 18 Eurozone macroeconomic variables that represent monetary policy, external and construction sectors’ performance, economic growth, investment, households’ earnings, inflation and assesses their impact on the performance of the European listed real estate companies and REITs. Empirical results demonstrate that the European listed real estate market is strongly influenced by the supply side: the construction sector and the inflation of producers’ prices; while the demand side is strongly affected by the expansionary monetary policy of ECB. Furthermore, some primary findings propose that US expansionary monetary policy shocks have an effect on the European listed real estate market. This conclusion demands further thorough research.

Boosting Homeownership Affordability for Low-Income Communities in Indonesia

“…But its impact can be minimized by keeping bank interest rates by way of subsidies stable. This is in line with studies [27,31,[78][79][80] shows that inflation affects the purchasing power of low-income people through the need to have a home.…”

BİST gayrimenkul yatırım ortaklıkları endeksi ile konut fiyat endeksi, faiz oranı ve enflasyon ilişkisi: ARDL sınır testi yaklaşımı

“…This result is consistent with the result reached by Nishigaki (2007) for the US market. The results for the effect of inflation are consistent with the findings of studies using different inflation indicators instead of the rental consumer price index used such as Nishigaki (2007), Fang, Chang, Lee, and Chen (2016), Arora, Killins and Gangineni (2019) and Cohen and Burinskas (2020). The findings obtained are similar to the studies of Zügül and Şahin (2015), Fang, Chang, Lee and Chen (2016) and Khan and Siddiqui (2019), which determined the negative effect of interest on REIT share values.…”

Analysing the relationship between global REITs and exchange rates: Fresh evidence from frequency-based quantile regressions

“…In particular, Nyakabawo et al (2018) examined the surprise impact of U.S. monetary policy and macroeconomic variables on the returns and volatility of the local housing market. While macroeconomic surprises did not affect housing returns, monetary policy had a much greater impact on returns across different periods (see also, Wang & Hartzell, 2020;Feng & Wu, 2021;Marfatia et al, 2021;Cohen & Burinskas, 2020;Mansur et al, 2020;Wang & Zong, 2020;Victor & Razali, 2019;etc.). According to Aye and Gupta (2019), even macroeconomic uncertainties can influence buying versus renting in the United States, affecting the performance of REITs.…”