Use of Google Trends to Predict the Real Estate Market: Evidence from the United Kingdom

Abstract

This paper demonstrates how Google Trends data can be used to improve real estate market predictions. Online searches produce valuable data that precede economic decisions. This study explores the usefulness of Google search engine data in predicting the real estate markets. The results indicate that Google data can be an additional source of information for investors and policymakers. This analysis adds to the existing literature that explores the role of behavioral factors in the decision-making process. Google Trends data are identified as an important predictor of real estate market prices and sales volume.