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FUNDAMENTAL ECONOMIC FACTORS THAT INFLUENCE THE REAL ESTATE VALUE:
COMPARATIVE ANALYSIS BETWEEN KOSOVO AND SLOVENIA FROM REGULATORY
PERSPECTIVE
Author: Visar Hoxha
Mentor: Alenka Temeljotov Salaj
Abstract
The purpose of this study is to provide strategic implications for real estate appraisers and real
estate marketers to know the economic determinants of real estate price dynamics in Kosovo
from the legal perspective. The fundamental economic determinants of real estate value,
adopted from previous studies, are GDP growth, labor market, and wages. The research
methodology used is comparative analysis. The main question addressed is whether the
conventional fundamental determinants of house prices, such as GDP per capita, real interest
rates, demographic factors, and construction costs have driven observed house prices in
Kosovo and Slovenia and how the laws in Kosovo and Slovenia had an impact on this. By
comparing the relevant legislation between two countries, the study shows the effects of
legislation on the link between fundamental economic factors and real estate price dynamics.
We show that house prices in Kosovo are significantly determined by the underlying
conventional fundamentals. This is the first research of tries to determine whether the
fundamental economic factors influence the real estate prices in Kosovo and the size of the
impact that the legislation has on the linkage between fundamental economic factors and real
estate prices.
Keywords: economic factors, regulatory perspective, real estate value, Slovenia, Kosovo