Real estate prices can have a significant impact on the emergence of economic crises. Our study focuses on the analysis of the impact of inflation on residential property prices in the Visegrad Four (V4) countries (the Czech Republic, Poland, Slovakia and Hungary). The paper’s objective is to verify and compare the impact of inflation on residential property prices.
Data are provided by the European Central Bank and Organisation for Economic Cooperation and Development (OECD) for each quarterly period from Q1-2008 to Q3-2023. For data analysis, Pearson’s correlation coefficient and linear regression using the OLS method have been used.
The results indicate that there exists a positive correlation between residential property prices and inflation for all V4 countries. Linear regression has proved that residential property prices in all V4 countries are positively impacted by inflation. Contrastingly, our results indicate that for all V4 countries, inflation is not sufficient to define a statistically robust regression model that can explain and predict residential property prices.
Similar studies have been done in the OECD and Pakistan, but no such study has been performed in the V4 countries.
