Condicionantes financieros de la inversión en vivienda

Abstract

Financial investment changes experienced on the Stock Exchange during the last decade, especially coinciding with financial markets crisis, appear simultaneously with a strong growth in the house building cycle in Spain. This phenomenon has been observed on two occasions in 1987 and 1997, when an important fall occurred in capital’s trust about financial markets’ evolution. Real Estate Finance theory explains that a certain substitution degree in the investment objectives could happen and it depends on both higher return spread and risk decreased to invest in the real estate portfolio. There are only a few studies in Spain applying these principles and statistics that disaggregate the investment for various destinations. However, empiric coincidence in both periods suggests that a process substitution could be happening in Spain in the target of investment between housing and stock assets. To find this phenomena means to find the reasons because of that families and companies decide to invest in one market or other and why. In the case of Spain, a positive relationship should show a very clear behaviour concerning with housing market that has important implications on family wealth as first time in Spanish research. This paper analyses this aspect focusing this problem in conceptual environment of Tobin-Q. We define different ways to quantify yield factor, taking into account a measure of credit restriction that allows us to discriminate between investment decisions on financial assets and housing stock in Spain. Results show evidence about some factors exists to explain how investment discriminate its flows towards housings in Spain and the relevance of capital gains existing owning a house to take decision to invest.