Forecasting Property Market Situation using Economic Indicators: A Conceptual and Empirical Review

Abstract

The property market is an important component of every nation’s economy because it contributes to economic growth, employment generation, infrastructure development, and wealth creation. However, the real estate market is highly sensitive to changes in macroeconomic conditions such as inflation, interest rates, exchange rates, unemployment, and gross domestic product (GDP). This study examines the use of economic indicators in forecasting property market situations. The research explores forecasting theories, forecasting models, and key economic indicators that influence property market performance. The study adopts a conceptual and empirical review approach by examining existing literature and economic trends. Findings reveal that economic indicators significantly influence property demand, supply, investment decisions, rental values, and property prices. The study concludes that forecasting models based on economic indicators can improve decision-making for investors, developers, valuers, and policymakers. The integration of economic indicators with appropriate forecasting techniques can therefore provide a more comprehensive basis for understanding future property market conditions. The study recommends the integration of advanced forecasting techniques and reliable economic data for sustainable property market planning.