DETERMINANTS OF THE REAL ESTATE MANAGEMENT MARKET IN EUROPE: PANEL REGRESSION MODEL (2015-2025)

Abstract

The purpose of the study is to identify the determinants of the property management market in Europe using Germany, France, Italy and Poland as case studies and to construct a panel regression model covering the period 2015-2025. To this end, the works of domestic and foreign researchers were reviewed and examples of the practical use of real estate market determinants when building the DOLS panel model were analyzed. The method of applying regression analysis and its limitations are described, among which the assumption of linearity of the relationship between independent and dependent variables is highlighted, which is not always relevant for the real estate market. Using Microsoft Excel, a panel regression model was built and its results were interpreted. During the work, it was proven that the created model is adequate and reproduces the data well. It was found that the model has high explanatory power, but requires larger amounts of data to reduce the forecast error. The ANOVA results once again confirmed the adequacy of the model and the existence of a relationship between variables. The interpretation of the variables made it possible to find that the interest rate factor does not have a confirmed impact on the real estate price index within the framework of this model. The results of the study can be used by economists, analysts and independent experts in the field of real estate management to calculate the effect of urbanization and changes in GDP per capita in the context of their impact on the EU real estate price index. The prospects for further research are to expand the model by integrating technological factors into it, such as the EU real estate management market digitalization index. In addition, the constructed model can be modernized or modified to compare the degree of influence of real estate market determinants of individual EU states on the real estate price index for citizens of these states.