Visegrad Region Dependency on Mining Industries: Impact of Raw Material Prices on Housing Prices and Investments

This study examines the impact of the mining industry and raw material prices on housing prices and real estate investment in the Visegrad region (Poland, the Czech Republic, Slovakia, and Hungary) from 2014 to 2023. Given the historical and economic links of this region with the development of the mining sector, the study aims to assess how fluctuations in raw material prices (e.g., coal, copper, steel) affect housing price dynamics and real estate investment decisions. The analysis uses Eurostat and World Bank data on key raw material prices, house price indices, and real estate investment flows. Panel regression analysis was used to identify the relationship between raw material price changes and housing prices, and the ARIMA model was used to forecast the impact of raw material prices on housing market trends. The study results show that the mining sector remains important for the real estate market of the Visegrad countries, and raw material price fluctuations have a significant impact on both residential real estate prices and investment flows to the housing sector in this region. In countries where mining remains the primary industry, property prices tend to be more cyclical. This highlights the importance of the mining industry to the housing market and the need to enhance risk management in the property sector in response to economic fluctuations.