Does internet search intensity predict house prices in emerging markets?: a case of India

Authors

Ekta Jalan
Venkatesh Panchapagesan
Madalasa Venkataraman

Document Type

Working Paper

Abstract

We examine whether internet search intensity, as captured by Google s Search Volume Index (SVI), predicts house price changes in an emerging market like India. Emerging markets have low internet penetration and high information asymmetry with a dominant unorganized real estate market. Like in developed markets such as the US, we find that internet search intensity strongly predicts future house price changes. A simple rebalancing strategy of buying a representative house in the city with the greatest change in search intensity and selling a representative house in the city with the smallest change in search intensity each quarter yields an annualized excess (over risk-free government t-bills) return of 4 percent.

Publication Date

1-4-2017

Publisher

Indian Institute of Management Bangalore

Pagination

27p.

Recommended Citation

Jalan, Ekta; Panchapagesan, Venkatesh; and Venkataraman, Madalasa, "Does internet search intensity predict house prices in emerging markets?: a case of India" (2017). Working Papers. 512.
https://research.iimb.ac.in/work_papers/512

Relation

IIMB Working Paper-537