Dynamics in real estate development: on the relationship between residential and commercial real estate markets
||Dennis Schoenmaker and Arno Van der Vlist
||Dynamics in real estate development: on the relationship between residential and commercial real estate markets
||19th Annual European Real Estate Society Conference in Edinburgh, Scotland
||This paper considers the dynamics in real estate development over time. We extend earlier literature by considering the relationship between the various markets of housing, retail, offices and industrial real estate. Does residential real estate development complement or substitute for commercial real estate development? Does residential real estate development lead or lag those in commercial real estate? How do shocks propagate through the various real estate markets? These questions are central in this paper. We present an empirical model of real estate development that includes the short and long-run relationship between real estate markets. For this we use Dutch time series of monthly data over 1995-2009. We investigate the time series properties of the data by testing for unit root and co-integration of the series. Empirical tests suggest a vector autoregressive model framework for real estate development series.
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||Parallel Session G1
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