Looking at the factors which cause significant movement in property Dissertation

Looking at the factors which cause significant movement in property prices within the UK and Europe' - Dissertation Example There is a variety of journals, press releases, research papers that look into the property market, however not many actually focus on what actually causes the price movements. When we start to look into this, we shall be able to clearly see what the factors are and how they relate. Evidence in the property markets, about returns, yields and price movement behaviours seem to be misunderstood from the traditional investment perspective. Firstly, it must be broken down, to what the actual components are that affect the property price movements and then understand how each of them play a part or if some components have any affect at all. The ‘real’ value of property would be another question all together because of how prices fluctuate from the actual fundamental value. Constant price movements in the market have allowed investors to make predictions and systematically make clear profits. To see what the property market forces are within the UK and Europe, the indices of se veral factors would need to be investigated including: House Price Index Property Yields Unemployment Inflation Gold Price (other investments available) Interest Rates Exchange Rates Property is known for the ‘prudent long term investment’ because of the worthwhile returns alongside the minimized efforts. Looking at these figures will give a good intake on what exactly is forcing the property market to fluctuate and even allow some predictions for the future. Under an efficient market, since the property prices already represent the available information, they will move only when new, unexpected information becomes available. The predictability of the information is impossible as to whether it is good or bad, it is equally impossible to predict the direction in which the property prices will move in the future based on such information. To establish that there are factors which create efficiency of the property market, which implies that at any given point of time the p rices do react to factors within the financial markets of the country and its surroundings. The price fluctuations do react to all the market information positively or negatively depending. †¢ To make a complete report on the above and explore the market which will allow us to see the movements in the past and also make predictions for the future. †¢ To make an in-depth study of all the available literature and make a report on the property market factors and items that contradict. †¢ To present a comprehensive and critical analysis of the property market hypothesis and present arguments to drive home the fact that which factors actually play a part in causing significant property movement. ‘Looking at the factors which cause significant movement in property prices within the UK and Europe’ The Literature Review Supervisor: Bijan Hesni For: Shafeen Shiraz Daya ‘Looking at the factors which cause significant movement in property prices within the UK and Europe’ With the objectives of the study in sight, this part of the dissertation paper makes a detailed review of the available literature on the property market efficiency and the factors of the property market. In order to enable the readers to understand the term market efficiency the following words of Robert