Mapping the Relationship between Energy Inflation and Real Estate Asset Performance: A Scoping Review
Year: 2025
Type: conference-paper
Study design: Systematic Review
Abstract: The intersection of energy markets and the real estate sector represents a critical area of economic research, with significant implications for household wealth, financial stability, and macroeconomic policy. However, while the impact of energy price shocks on the broader economy is well-documented, their specific effects on real estate financial performance are complex and merit focused investigation. This study seeks to provide a comprehensive understanding of the patterns, divergences, and evidence gaps on the impact of energy fluctuation on real estate investment. The study adopts a scoping review that synthesizes and analyses the existing academic literature on the impact of energy inflation, primarily measured through oil price fluctuations and volatility, on the financial performance of real estate markets. A systematic review of 39 academic studies was performed using the PRISMA- ScR. The analysis focused on empirical quantitative studies examining the relationship between energy costs and measurable real estate financial outcomes, such as property values, rental rates, market volatility, and returns. Data on the study design, market context, key variables, quantitative impacts, market dynamics, and policy recommendations were extracted and synthesized. The review reveals a consistent and statistically significant relationship between energy inflation and real estate financial performance in the short run. However, the magnitude and nature of this impact are highly context dependent. By mapping the evidence from 39 distinct studies, this review provides a comprehensive overview of the transmission channels linking energy markets and real estate performance. It identifies key thematic findings, highlights significant research gaps related to data availability and methodological limitations, and consolidates policy recommendations. The review concluded that the financial performance of real estate is intricately intertwined with energy inflation. This connection, however, is not a straightforward, fixed principle but rather an emergent characteristic of a complex adaptive system, shaped by national economic frameworks, the extent of market financialization, and the proactive influence of policy and information.
Institution: University of the Witwatersrand
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: gold
OpenAlex ID: W7127077196
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