Abstract:
A statistical tool used to monitor changes in the cost of residential real estate
properties within a given nation or geographic area refers to the housing index.
Typically, data is compiled from multiple sources to compute it. It is a helpful tool
for spotting real estate market trends and helping you decide whether to buy or sell a
property. Housing indices are frequently used by real estate professionals and
investors to monitor the performance of their real estate portfolios, determine
possible investment opportunities, and evaluate the state of local real estate markets.
In order to evaluate the trend comparison between developed and developing
countries, this study compared the housing index of Turkey with those of three
highly developed nations the United States, the United Kingdom, and Germany. I
take into consideration the GDP, population, interest rate, unemployment rate, and
debt of those nations and look at how they affect the housing index. Regression
analysis was used to analyze the effects using time series secondary data of those
nations and the aforementioned factors from 1982 to 2021. The results of the study
demonstrated that Turkey's housing index pattern differs from that of developed
nations in that interest rates, unemployment rates, and debt are the primary
determinants of the housing index in Turkey, in contrast to the United States, where
GDP is also a significant determinant of the housing index. Furthermore, it has been
determined that debt has a negative impact on the housing index in Turkey, whereas
in developed nations, debt has a positive impact. Additionally, it was discovered that
the housing index for the UK and Germany was not significantly influenced by
interest rates, and that these two nations' GDP and population sizes were additional
predictors. In contrast with other developed and developing countries, the UK's
unemployment rate was found to negatively affect the housing index.
