Presentations at an Academic or Professional conference
Year
2007
Authors
BARONI Michel, BARTHELEMY Fabrice, MOKRANE M.
Abstract
In this paper we investigate the driving factors associated with the Paris apartment market. We explore a database of around 276 000 transactions for residential properties in the Paris area over the 1982-2005 period. We develop a factorial model that may capture the systematic link between residential prices and a set of predefined economic variables or their linear combination. We measure this link by a multifactor approach which underlines the “true path” of the real estate market in the sense that systematic factors can represent it. The factors thus derived can be used to generate a “actor model” useful in comparison to existing price growth indices and that may provide valuable intuition for forecasting residential prices.
BARONI, M., BARTHELEMY, F. et MOKRANE, M. (2007). Constructing a New Real Estate Risk Index for the Paris Residential Market.