Real Estate Brokers: Do they inflate housing prices? - CEREG

Indeed, investors can deduct 6% of the price during the first seven years and 4% during thefollowing two years. Moreover, the rents benefit from 6 % abatement. Ultimately, with thislaw, an investor can deduct up to 65% of the amount invested. The law did increaseinvestment in the new housing market and especially for small accommodations.Table 1 │ Variable descriptionsIntermediationAgent-assisted transaction (RE): Takes the value 1 if a real estate broker is engaged in the transaction and 0otherwise.Hedonic characteristicsSale price (PM2): Price per square meters in euros paid by a buyer for a house.City: A vector of city location variables, equalling 1 if the house is situated in that city and 0 otherwise. Thecities are: Bordeaux, Lille, Lyon (9 urban districts), Marseille (16 urban districts + one category forunknown district), Montpellier, Nancy, Nantes, Rennes, Roubaix, Strasbourg, Toulouse, and Tourcoing. Wereunited the cities of Lille, Roubaix and Tourcoing as they are very near to each otherStreet type: A vector of street type variables: alley, avenue, blind alley, boulevard, crossroad, path, park,public garden, square, street, residence, road, etc.Apartment type (St, Lo, Du, Tr): A vector of apartment type variables (standard, loft, duplex, triplex).Rooms (Rx): A vector representing the number of rooms in the house: from 1 to 8. Houses with more thaneight rooms are set in the 8 and more room category.Floor (Fx): A vector representing the floor number: from 0 to 9, floors 10 to 19 are put in the same category,and the last category contains floors 20 and above.Month of sale (Mx): A vector representing the month in which the closing of sale occurred.Number of cellars in the house (Cellar)Number of bathrooms in the house (Bath)Construction period (A to H): A vector of categorical variables representing the construction period. Thecategories are: < 1850; 1851-1913; 1914-1947; 1948-1969; 1970-1980; 1981-1991; 1992-1999; 2000-2005.Terrace (Terrace): An indicator variable that takes the value 1 if there is a terrace and 0 otherwise.Balcony (Balcony): An indicator variable that takes the value 1 if there is a balcony and 0 otherwise.Loggia (Loggia): An indicator variable that takes the value 1 if there is a loggia and 0 otherwise.Storeroom (Storeroom): An indicator variable that takes the value 1 if there is a storeroom and 0 otherwise.Attic (Attic): An indicator variable that takes the value 1 if there is a attic and 0 otherwise.Buyers’ and sellers’ characteristicsSocio-occupational category (SOCx): A vector of categorical socio-occupational variables, equalling 1 if theoccupation of the agent falls into that category, 0 otherwise. The categories are: Farmers; Artisans,shopkeepers, and employers; Managers and higher-grade occupations; Intermediate-grade occupations;Clerical workers; Manual workers; Retired persons; Other persons without occupational activity.Matrimonial status: A vector of categorical variables that represents the matrimonial status and the genderof the person who signs the contract. The categories are: married, single, divorced, remarried, PACScontract which corresponds to a legal contract concluded between two adults of opposite sex or not inorder to organize their common life (equivalent of common-law), and widowed. Each category is dividedinto man and woman.Age (AGExx): A vector of categorical variables that represents the age of the agent. The categories are: 18-29 years; 30-39 years; 40-49 years; 50-59 years; 60-69 years; 70-79 years; 80 years and up.Nationality: A vector representing different nationality: Algeria; Belgium; France; Germany; Italy;Morocco; Portugal; Spain; Tunisia; Turkey; United Kingdom; others.12