The impact of stock market and macroeconomic variables on real estate prices dynamics: evidence from Saudi Arabia

Dohaiman, Mohammed Saleh Al

doi:10.1504/ijsrece.2017.10005276

IJSRECE

2017

DOI: 10.1504/ijsrece.2017.10005276

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The impact of stock market and macroeconomic variables on real estate prices dynamics: evidence from Saudi Arabia

Mohammed Saleh Al Dohaiman

Abstract: Abstract:To enhance portfolio return and achieve diversification, Saudi investors have long been seeking opportunities in real estate markets since the crash of Saudi stock market on February 2006. The aim of this paper is to explain the determinants of real estate price dynamics in the case of Saudi Arabia. Using monthly data from January 2008 to December 2012, we examine the impact of key monetary policy and macroeconomic variables, including money supply growth, inflation rates and interest rate, on the rea… Show more

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A study on the mediating effect of residential loans on total real estate loans of banks in India

Aggarwal

Solomon

2019

JPIF

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Purpose The purpose of this paper is to examine the impact of residential and commercial loans on total real estate sector loans by using partial least square–structured equation modelling (PL–SEM) method. The residential loans as a mediator have been used to know the mediation effect between commercial and total real estate loans of banks in India. The residential loans as a mediator govern the relationship between commercial loans and total real estate loans in India. Real estate sector development is a lucrative opportunity for India. The real estate sector plays a major role in shaping economic conditions of the individuals, firms and family. Design/methodology/approach The research is descriptive in nature. The study on residential loans, commercial loans and total real estate loans has been taken into consideration, and on the other hand the measurement and structural model have been employed to the study the impact of residential loans and commercial loans on total real estate loans in India by using PL–SEM. The residential loans as a mediator have been taken to study the mediation effect of the relationship between commercial loans and total real estate loans in India. Findings The outcome of the structural model that is bootstrapping technique shows that there is an impact of residential and commercial loans by public and private sector banks on total real estate sector development in India. The residential loans show the full mediation effect between commercial loans and total real estate loans as the value of variation accounted for (VAF) is more than 1.93 which shows residential loans govern the nature of variable between commercial loans and total real estate loans. Practical implications The public and private sector banks are contributing to the real estate sector development in India which increases the economic growth of the country. The mediation analysis shows that residential loans are an important aspect between commercial and total real estate loans in India as the demand for residential housing is more in India. The increasing role of banks in the real estate sector strengthens the financial capability in the real estate sector market, and the property buyers will able to purchase more property which leads to increasing demand for real estate sector. Originality/value The research paper is original, and PL–SEM has been used to find the results.

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A study on the mediating effect of residential loans on total real estate loans of banks in India

Aggarwal

Solomon

2019

JPIF

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Exploring a Three-Factor Dependence Structure of Conditional Volatilities: Some Quantile Regression Evidence from Real Estate Investment Trusts

Liow

2022

JRFM

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We propose a simple three-factor pricing model, consisting of a local stock market index, a global REIT market index, and a global stock market index, to examine the dependence structure of conditional volatilities in the real estate investment trust (REIT) market from 11 countries over the sample period from 1 June 2008 to 30 April 2021. The main quantile regression results reveal that a simultaneous dependence structure exists between each REIT market and local stock, global REIT market, and global stock market. There is a positive and significant dependence between REITs and three factors for every part of the quantiles. Across each quantile, Asia-Pacific REIT markets have a consistently higher average degree of dependence with their local stock markets than with the global stock and global REIT markets, whereas European REIT markets are generally more globally integrated. Furthermore, the lower and upper quantile estimates for over half of the REIT-quantiles for the three market factors are statistically different. Additionally, some REIT markets display asymmetric co-movement with at least one of the three factors as the degree of dependence increases when these markets are booming, but the dependence level declines when the markets are bearish. This evidence of dependence across the three influential factors and REIT markets provides meaningful insights into REIT market growth, international asset pricing, risk management, and dynamic linkages in the global economy.

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The impact of stock market and macroeconomic variables on real estate prices dynamics: evidence from Saudi Arabia

Cited by 2 publications

References 5 publications

A study on the mediating effect of residential loans on total real estate loans of banks in India

A study on the mediating effect of residential loans on total real estate loans of banks in India

Exploring a Three-Factor Dependence Structure of Conditional Volatilities: Some Quantile Regression Evidence from Real Estate Investment Trusts

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