Analysis of a development condition on the real estate markets in Poland and EU countries

The downturn in the real estate market in Europe but also in other continents lasts from the end of 2008. In some countries, however, you may notice signs of recovery from the crisis. This is evidenced by the reports of the local real estate markets.  It seems obvious that economic downturns, including the slump in the property market, should negatively affect the condition of the real estate companies. Besides the condition of the real estate companies is correlated with stock exchange data. It is good to know how this process works in countries (and companies).

The research includes the real estate markets in the European Union, in particular the segment of housing projects and entities performing these investments. Given the scope of the study and data availability authors will focus on the development companies and their financial results listed on various stock exchanges and indices determined for the development sector. The analysis will be carried out for selected years after 2008. Of particular concern is the situation in the property development market in the context of the economic situation of the country and the situation in the construction market, with particular emphasis on housing investment.

The aim of the study is to assess the local real estate markets from the point of view of the condition of real estate companies listed on the local stock exchanges and socio-economic potential of these markets. As a result, a ranking of European housing markets will be created, which will indicate the potential for development of these markets. The research hypothesis will be verified on a strong correlation condition of real estate companies and the state of the housing market during the downturn in the real estate market. For this purpose, basic economic and financial indices will be determined that will be used for classification and positioning of the various real estate markets. For testing the hypothesis multivariate statistical analysis tools will be used. Methods of data classification will be used.

Our results may be useful in investment decisions of development companies in international markets. For national authorities, our results may provide data on the weak position of countries in the international ranking.