Low long-term interest rates are driving up real estate valuation but not equity valuation: Why?

In the United States and the euro zone , l ow long-term interest rates are starting to have a very positive effect on real estate prices but not on equ ity valuation. What accounts for this asymmetry? The answer is probably the difference between the liquidity of equities and the illiquidity of real estate: as equities are listed on a market, share prices have become extremely volatile, and this high variability of share prices discourages investors from holding equities. In contrast, real estate is illiquid, prices evolve steadily and investors are not deterred by price variability, leading to strong demand thanks to low interest rates and rising real estate prices.