Abstract
- Real estate and stock returns sometimes have low or negative correlations in developed countries, such as the US and UK, while emerging markets often exhibit a positive relationship. No circulating study, however, examines the relationship between the real estate and stock markets in Poland. We provide that research with this paper. Using a proprietary real estate database over the fifteen years between 1995 and 2009, we find that the correlation between the real estate and the stock markets in Poland is low (0.114). We find also that positive returns in the Warsaw Stock Index are precursors to favorable returns in the Warsaw real estate market.