Abstract:

In the modern geopolitical landscape of the 21st century, the Ukraine conflict vividly demonstrates how regional disputes can have far-reaching global consequences that extend beyond the immediate conflict zones. This paper sheds light on the less discussed economic impacts caused by the war in Ukraine, particularly in the context of the European real estate industry. Through the analysis of the DiPasquale-Wheaton model, it outlines how external shocks such as the Ukraine conflict can affect both the rental market and the real estate market. Special attention is given to the resilience of the real estate market in times of geopolitical uncertainty and the potential opportunities and risks arising from such shocks. The analysis ends with a call for caution and prudence in investment decisions to avoid panic-like market reactions that could lead to a liquidity crunch. The main objective of this essay is to create a deeper understanding of the complexity and interconnectedness of geopolitical events and the real estate industry in a globalised Europe.