ESSEC Working Papers
No DR 04006:
The Paris Residential Market: Driving Factors and Market Behaviour 1973-2001
Michel Baroni ()
, Fabrice Barthélémy ()
and Mahdi Mokrane ()
Abstract: In this paper we investigate the driving factors
associated with the Paris apartment market. We explore a database of nearly
230 000 transactions for residential properties in the Paris area over the
1973 – 2001 period. We develop a factorial model that may capture the
systematic link between residential prices and a set of predefined economic
variables or a linear combination of these economic variables. We assume
that capital growth rates in real estate are related to the variables we
defined in the last paragraph. We measure this link which underlines the
‘true path’ of the real estate market: in that way we can develop an index
as a function of many other indices. The methodology we develop, based on a
multifactor approach to apartment price movements in the long run, has two
main advantages over traditional indices. Firstly, we are able to identify
the main driving factors for the Paris residential market. And secondly,
the factors thus derived can be used to generate a “factor model” useful in
comparison to existing capital growth indices and that provides valuable
intuition for forecasting residential prices.
Keywords: Real estate indexes; Repeat sales; Risk factors; (follow links to similar papers)
JEL-Codes: C20; G00; (follow links to similar papers)
24 pages, May 2004
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
showDeclFileRes.do?declId=4633&key=__workpaper__ 
Download Statistics
Questions (including download problems) about the papers in this series should be directed to Sophie Magnanou ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design Joakim Ekebom
