The link between monetary policy and the direct European office market: some empirical evidence
Alain Coen,
Benoit Lefebvre and
Arnaud Simon
ERES from European Real Estate Society (ERES)
Abstract:
Since the financial crisis Central Banks have used unconventional monetary policy and increased the quantity of money available in the economy. The purpose of this paper is to study the effect of money supply on commercial real estate prices. The paper uses a panel estimation to determine the relationship between office price indexes and explanatory variables, both at different locations and at different periods. The panel analysis allows understanding price movements across the 15 main office markets in continental Europe between 2005 and 2015. To pick-up the relation between prices and money supply, we have constructed, for each market a monetary index adapted to commercial real estate. Results show that office prices are driven by economic variables, but there is also a positive relationship between the monetary index and the office prices. Restricting the analysis between 2010 and 2015 we found a reinforced causal relation between prices and money. Quantitative easing has an important impact on real estate.
Keywords: European real estate market; Monetary supply; office prices; Panel Estimation (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2017-07-01
New Economics Papers: this item is included in nep-mac and nep-mon
References: Add references at CitEc
Citations:
Downloads: (external link)
https://eres.architexturez.net/doc/oai-eres-id-eres2017-55 (text/html)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2017_55
Access Statistics for this paper
More papers in ERES from European Real Estate Society (ERES) Contact information at EDIRC.
Bibliographic data for series maintained by Architexturez Imprints ().