Weak points of our approximation method
Numerous factors are not included in our approximation method. Neither higher
rents for new residential property nor index rents for existing tenancy
agreements are factored in. When calculating rental inflation, it also makes a big
difference whether the same tenants move to a new location every year or
whether a person with an existing tenancy agreement concludes a new rental
contract every year.
In our review, we also left aside the fact that tenants
can become owners and vice versa. Similarly, removals to reduce expenditure
on rent or to avoid rent increases are also ignored. Moreover, the official
consumer price statistics do not reflect quality-related price movements
(hedonics). As regards our approximation method and data base, the use of
hedonic adjustment is precluded.
EU Forecast
euf:ba.18.j:195/nws-01