Real Estate as inflation hedge and the effect of central bank monetary policies on real estate investment finance indexes: a comparative study of Brazil, the Eu and the Uk

Abstract

This study examines the important role of real estate investments in protecting against inflation in a dynamic economic environment with changing monetary policies and the ongoing risk of rising prices. The research, supported by a comparative methodology that includes Brazil, the EU, and the UK, explores the complex relationship between central bank strategies, real estate sectors, and inflation dynamics. The study aims to identify indexes that can minimise expected deficits by utilising linear regression and advanced statistical models like Markov-Switching Vector Model, thus following the recent approach in the literature but within a new context, specifically in Brazil. Through examination of many structural characteristics in real estate investment funds and the efficacy of different investment indexes, the objective is to offer thorough perspectives that enable investors and policymakers to make well-informed choices in a difficult and unpredictable economic environment.