AN EXAMINATION OF THE RELATIONSHIP BETWEEN THE CONSUMER PRICE INDEX AND THE HOUSE PRICE INDEX… IN THE PERIOD 2016-2021

Aleksandar Yordanov

Abstract:The real estate market is influenced by a number of external and internal factors. The "real estate operations" sector is also key to the sustainable development of the national economy. Residential properties are an important segment of the sector in terms of the significant share they occupy in it. In addition, their main function related to the provision of basic human needs should also be considered. Due to the nature and specifics of this market, it is challenging to identify certain trends regarding its development. There are many complex interrelationships that have a significant impact on the market processes in it. The nature of these dependencies is also taken into consideration, as well as the two-way influence through which the residential real estate market affects different sectors of the economy. In this report, a non-systematic review of the literature has been made, emphasizing the results of studies focused on the impact of selected macroeconomic factors on the real estate market. Particular attention is paid to the indicators "Consumer Price Index" and "House Price Index". The researched data concern the Republic of Bulgaria, and the examined period is 2016-2021. The relationship between the two indicators was analyzed through regression analysis. Based on the obtained results, an analysis of the current state of the market is made in the context of the examined correlation dependence.

Key words:Real estate; Consumer Price Index; House Price Index; Regression analysis; Residential properties; Housing sector

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