Inspecting the nexus between internal factors, external factors, and house prices: ARDL approach on the Djiboutian real estate industry

Abstract

Land business such as real estate has shifted radically in the course of the last years. What's more, it has been catching a lot of interest. In my country, Djibouti purchasing a typical house costs multiple times the yearly family income. Accordingly, the current paper the nexus between internal factors, external factors, and house prices in the Djiboutian market. In this review, an ARDL approach was adopted to predict and foresee the factors that influence the Djiboutian real estate industry for a period of 29 years.  The model demonstrated a positive and apparent link between the employment rate, manufacturing cost, national income, external debt, LGDP, tax, inflation, and house prices. Except for the inflation rate that displayed no remarkable influence on the Djiboutian real estate industry. The outcome will give a substantial and unmistakable examination to the Djiboutian populace to know better how their income affects their selections of houses and it will likewise give the public authority an understanding of the most proficient method to direct the rising costs of real estate in relation to residents' earnings. The paper will likewise extend the actual literature and add evidence concerning the real estate industry in the horn of Africa, especially the Somali peninsula.