Exuberant behaviour in the Istanbul housing market before and during the time of the COVID-19 pandemic: evidence from the aggregate and disaggregate levels

Lokman Gunduz; Sumeyye Busra Tekin; Merve Ozer; Ismail H. Genc

doi:10.1080/13504851.2023.2278592

Exuberant behaviour in the Istanbul housing market before and during the time of the COVID-19 pandemic: evidence from the aggregate and disaggregate levels

Lokman Gunduz, Sumeyye Busra Tekin, Merve Ozer, Ismail H. Genc^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

Abstract

We study mildly explosive behaviour in house prices in Istanbul at both aggregate and disaggregate levels via GSADF tests. In contrast to previous studies, our results suggest multiple episodes of price exuberance in Istanbul and most districts. Most boroughs synchronically experienced explosive house prices in 2014–2015; and more powerfully during the last episodes of COVID-19. We also show that financial variables, including low mortgage interest rates and high stock prices, increased the probability of explosiveness.

Original language	English
Pages (from-to)	619-623
Number of pages	5
Journal	Applied Economics Letters
Volume	32
Issue number	5
DOIs	https://doi.org/10.1080/13504851.2023.2278592
Publication status	Published - 2025
Externally published	Yes

Bibliographical note

Publisher Copyright:
© 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

Keywords

COVID-19
Exuberance
GSADF test
Istanbul
house prices

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1080/13504851.2023.2278592

Cite this

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abstract = "We study mildly explosive behaviour in house prices in Istanbul at both aggregate and disaggregate levels via GSADF tests. In contrast to previous studies, our results suggest multiple episodes of price exuberance in Istanbul and most districts. Most boroughs synchronically experienced explosive house prices in 2014–2015; and more powerfully during the last episodes of COVID-19. We also show that financial variables, including low mortgage interest rates and high stock prices, increased the probability of explosiveness.",

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AB - We study mildly explosive behaviour in house prices in Istanbul at both aggregate and disaggregate levels via GSADF tests. In contrast to previous studies, our results suggest multiple episodes of price exuberance in Istanbul and most districts. Most boroughs synchronically experienced explosive house prices in 2014–2015; and more powerfully during the last episodes of COVID-19. We also show that financial variables, including low mortgage interest rates and high stock prices, increased the probability of explosiveness.

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Exuberant behaviour in the Istanbul housing market before and during the time of the COVID-19 pandemic: evidence from the aggregate and disaggregate levels

Abstract

Bibliographical note

Keywords

UN SDGs

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