It is difficult to determine a correlation between real estate and stock exchange and this behavior will change depending on the economy. The principle that can be followed while performing any research/analysis can include:
- Those few that accumulate capital have to invest it somewhere. And, that pretty much comes down to three choices for those not brave enough to risk their capital on their own/business venture: currency (banks), equities (stock market) or real estate. Thus, capital flows from one to the other.