An Analysis of the Evolutions of Real Estate Market and Purchasing Power within the European Union
The paper analyzes to what extent the evolution of the real estate market in the EU countries is influenced by the purchasing power of the citizens of those countries. This analysis is based on the developments of GDP per capita, purchasing power parities, House Price Index and production in construction in period 2008 - 2013 in the EU countries and is structured on three research hypotheses.The first research hypothesis assumes that purchasing power, quantified both by GDP per capita and through purchasing power parities, significantly influences the House Price Index. The second hypothesis assumes that purchasing power significantly influences the production in construction and the third hypothesis assumes that the House Price Index significantly influences the evolution of production in constructions.Testing these hypotheses result in a complex influence: the evolution of GDP per capita significantly influences the evolution of House Price Index, and the price index at his turn influences the evolution of production in construction. There was no significant correlation between the purchasing power and production in construction.Finally, is made a grouping of EU countries into four categories according to all indicators analyzed and are discussed the prospects of Real Estate market developments in the EU countries.
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