The application of the spatial approach in the analysis of factors affecting housing prices in Iranian cities with an emphasis on financing...

Subject Areas : Financial Economics

Yaghoub Fahid Azar ^{1 *} , Ali Rezazadeh ^{2 *} , Samad Hekmati Farid ³

1 - Department of Economics, Faculty of Economics and Management, Urmia University, Urmia, Iran
2 - Urmia University
3 - Urmia University

Received: 2023-09-10 Accepted : 2024-11-13 Published : 2025-01-05

Keywords: Financing, Housing prices, Spatial panel data models,

Abstract :

This paper analyzed factors affecting housing prices in Iranian metropolitan with a spatial model.For this purpose, the spatial auto-regression (SAR) method with panel data approach has been used to explore the existence of the internal relationship between economic variables of different regions on housing prices in these regions and the coefficients of economic variables affecting housing prices related to 429 counties of Iran from 2011 to 2021. Finally, it examines how likely it is that housing prices lead to regional economic changes and financial crises. Estimates show a significant degree of heterogeneity among counties. As expected, the net spatial coefficient estimates (simultaneous and lagged) are mostly positive and indicate a high degree of spillover effects of housing price changes to neighborhood regions. By generalizing the results of this paper to the capital characteristics of house, it also confirmed that house is an asset. This article is of great help to credit providers and insurance organizations and financial funds to diversify assets