Land prices and housing prices: the case of Spain

This research analyzes the Granger causality relation between land and housing prices in Spain. This relation is examined using Spanish provincial quarterly observations for the period 2005Q1–2010Q2. The results show that there is a bidirectional relationship between both markets. However, while the causality from the housing market to the land market is clear, the causality in the opposite direction, although statistically significant, is much weaker.