EcoSta 2018: Registration
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Title: Evaluation and analysis of the value of German real estate following the financial crisis of 2007 Authors:  Chong Dae Kim - TH Koeln (Technische Hochschule Koeln) (Germany) [presenting]
Abstract: The price of housing is an important indicator in the analysis of a macroeconomy. In the last fifty years the development of the housing market in all large industrial countries showed a collapse before each large recession. The calculation of a property's value occurs through a partial solution of the regression equation and the use of the norming principle of real estate evaluation. Thus using this method we calculate the relative value of real estate for the German market and analyze the effect of the contemporaneous interest rate on the real estate market during the last ten years. Our results show that a low interest rate has had a positive effect on real estate prices in large cities as well as in district cities. Our results also show that prices in rural areas have been rising since 2013.