International Advances in Economic Research

, Volume 24, Issue 1, pp 25–45 | Cite as

Fundamental Determinants of Real Estate Prices: A Panel Study of German Regions

  • Ansgar Belke
  • Jonas Keil


This paper aims at establishing empirical facts on the fundamental determinants of real estate prices. It contributes to the literature by analysing a unique panel dataset covering a wide range of real estate market data and other economic variables for nearly 100 German cities. Several robust fundamental determinants are identified, among them the supply-side factors of construction activity and housing stock as well as the demand-side factors of apartment rents, market size, age structure, local infrastructure and rental prices. Results suggest that these factors are robustly linked to fundamental real estate prices and thus can be used to detect misalignments of market prices.


Real estate market Fundamental prices Regional data Panel study 


R21 R31 



We are grateful to BulwienGesa AG for providing the real estate data analysed in this paper. Participants in the workshop “Real Estate Forecasting" at the Helmut-Schmidt-University, Hamburg, in the international conference "Real Estate Economics" at the German Institute for Economic Research (DIW), Berlin, in the intenrational Workshop "Immobilienökonomie", University of Duisburg-Essen, and in the international conference "The Excessive Imbalances Procedure (EIP): How to Undertake Surveillance on Housing Markets?“, European Commission, Brussels, and an anonymous referee provided helpful comments.

Supplementary material

11294_2018_9671_MOESM1_ESM.docx (38 kb)
ESM 1 (DOCX 38 kb)


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Copyright information

© International Atlantic Economic Society 2018

Authors and Affiliations

  1. 1.Department of Economics, Chair for MacroeconomicsUniversity of Duisburg-EssenEssenGermany
  2. 2.Centre for European Policy Studies (CEPS)BrusselsGermany
  3. 3.Institute for the Study of Labor (IZA)BonnGermany
  4. 4.German Development Institute (DIE)BonnGermany

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