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Determinants of returns on housing: the Iranian case

Hassan Gholipour Fereidouni (School of Management, Universiti Sains Malaysia, Penang, Malaysia)
Ebrahim Bazrafshan (School of Management, Universiti Sains Malaysia, Penang, Malaysia)

International Journal of Housing Markets and Analysis

ISSN: 1753-8270

Article publication date: 28 September 2012

518

Abstract

Purpose

The purpose of this study is to investigate the determinants of returns on housing in Iran by analyzing capital appraisals, rents, and total returns.

Design/methodology/approach

This study uses data from 28 provinces of Iran over the period of 2000‐2007. Using generalized method of moments (GMM), the determinants of returns on housing in Iran are investigated.

Findings

The empirical results indicate that in particular changes in inflation and population and to a lesser extent changes in unemployment and gross domestic product (GDP) are the important determinants of returns on housing.

Practical implications

The findings imply that real estate investors in Iran can obtain higher returns from their housing investment if they invest in provinces that have positive changes in population, GDP and inflation and negative changes in unemployment rate.

Originality/value

Most studies in this area cover US and European real estate markets (particularly office market). Since findings for developed countries might not be directly transferable to emerging market economies such as Iran, therefore, more work is necessary to obtain a clearer picture of real estate markets in emerging market economies.

Keywords

Citation

Gholipour Fereidouni, H. and Bazrafshan, E. (2012), "Determinants of returns on housing: the Iranian case", International Journal of Housing Markets and Analysis, Vol. 5 No. 4, pp. 351-360. https://doi.org/10.1108/17538271211268493

Publisher

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Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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