The Commercial Real Estate Market, Central Bank Monitoring and Macroprudential Policy

  • Krzysztof Olszewski National Bank of Poland


This article reviews the impact of commercial real estate (CRE hereafter) on macrofinancial stability and discusses some ideas on how central banks could deal with the risk that it can impose to the financial stability. First, we present the main features of the CRE market, explain its cycle and outline risks related to this market. We discuss the relationship between the CRE market and the financial system. For several countries that experienced a CRE crisis, we critically assess the reactions of their central banks. We conclude that the CRE market should be tracked by the central bank and present some ideas for the data collection and details of the analysis of the CRE market. Finally, we provide some suggestions for the macroeconomic and financial stability policies of central banks which should help to reduce risk and enhance the growth of the CRE market.