Iteratively Reweighted Least Squares-based Generalized Linear Model for Assessing the Impact of Macroeconomic Indicators on Property Investment

This study explores the impact of macroeconomic indicators on Net Present Value (NPV) in the Malaysian property sector from 2010 to 2022. Using data from Sharia-compliant property firms, Generalized Linear Models (GLMs) and logistic regression analyze Consumer Price Index (CPI), Gross Domestic Product (GDP), interest rate (IR), and exchange rate (ER) effects on NPV. Significant positive associations are found for CPI (coefficient = 0.028, p = 0.001) and GDP (coefficient = 0.004, p = 0.045), indicating higher inflation and economic growth enhance NPV. Conversely, ER (coefficient = −0.015, p = 0.003) and IR (coefficient = −0.042, p < 0.001) negatively impact NPV, reflecting currency volatility and borrowing costs. GLM-IRLS models show robust predictive power (Deviance = 235.67, R-squared = 0.30), informing strategic decision-making for property investments amid economic fluctuations.