Effects of Exchange Rate Changes on Real Estate Prices in Russia During the Russian-Ukrainian War

As a result of the Russian-Ukrainian war which started at February 24, 2022, some of Russia's economic indicators have been affected, including the ruble's exchange rate, Russia's inflation rate, and GDP. With this in mind, this paper assumes that there is a linear relationship between real estate prices and the exchange rate, inflation rate, and GDP as follows: ln_repx = ß0 + ß1 ln_exr + ß2ln_inf + ß3ln_Y + c.c.. Based on the information collected, the StataSE 15.0 tool is used to perform regression operations to derive the correlation coefficients and to explore the relationship between house prices and each price factor. Afterwards, it was concluded that under the influence of the Russian-Ukrainian war, changes in the exchange rate of the Russian domestic currency against the US dollar would have some negative impact on real estate prices. Overall, these results shed light on guiding further exploration of continuous influence from war on Russia’s real estate market and pave a path for government to make efficient response.