| Abstract [eng] |
The purpose of this paper is to analyse real estate market and various theories of the price bubbles, find the main elements that influence real estate prices and review Lithuanian real estate market situation in the light of COVID-19 pandemic. To achieve this, six goals were raised: 1) analyse the main economic and price bubbles theories 2) review real estate market crashes around the world 3) identify if economic factors affect real estate market prices in Lithuania 4) determine whether psychological factors impact real estate market prices 5) research COVID-19 impact to real estate market 6) find out if the Lithuanian real estate market is overheating. Regressive analysis was created and tested using EVIEWS program, this helped to determine what statistical data has the largest impact on real estate prices. An online survey was created and shared with experts that work in the real estate market to determine subjective reasons that affect the market and prices. To test the impact of COVID-19 on real estate market a newest data research was conducted. Regression model was proven to be reliable and showed that half of the real estate market price changes are related to fundamental data. The online survey has showed that optimism and impatience are the key psychological factors that affect real estate prices. Research of the newest statistical data has showed that the real estate market is changing in the face of the pandemic. This paper confirms that in order to fully understand the real estate market and price bubbles fundamental and subjective data needs to be evaluated. Results of this research paper can be published with the approval of the author. |
