Economic Factors Influencing Housing Prices in Pakistan-Reference-Cited by-同舟云学术

Economic Factors Influencing Housing Prices in Pakistan

Published:2023-10-18 Issue:3 Volume:11 Page:49-67
ISSN:2311-0279
Container-title:Review of Business and Economics Studies
language:
Short-container-title:RoBES

Author:

Khan M. T.¹^ORCID

Affiliation:

1. Abdul Wali Khan University

Abstract

The aim of this research is to explore the factors influencing housing prices in Pakistan. The author used monthly time series data for the period from 2011 to 2020, which were obtained from different sources: housing prices data from zameen.com, Karachi interbank offered rate (KIBOR) as a proxy for monetary policy, consumer price index as a proxy for inflation, and exchange rate data from the State Bank of Pakistan. Various methods, such as autoregressive distributed lag (ARDL), comparative analysis and deductive analysis were employed. Before using the ARDL technique, a proper lag length was selected, which turned out to be 11 months. Various diagnostic tests indicated model stability with no autocorrelation or structural breaks. The author concluded that the KIBOR rate negatively affected housing prices, while inflation and exchange rates affected house prices positively.

Publisher

Financial University under the Government of the Russian Federation

Subject

General Medicine

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