Influence of Less Cash Economy on Real Estate as Asset Class in India

2017 ◽  
Author(s):  
Rakesh Jain
Keyword(s):  
Real Estate ◽  
Asset Class ◽  
Cash Economy

scholarly journals Real estate as a portfolio risk diversifier

2016 ◽  
Vol 13 (2) ◽  
pp. 45-52
Author(s):  
Ahmad Etebari
Keyword(s):  
Real Estate ◽  
Portfolio Risk ◽  
Optimal Portfolios ◽  
Investment Performance ◽  
Optimization Framework ◽  
Expected Inflation ◽  
Common Stocks ◽  
Asset Class ◽  
The U.S ◽  
Return Data

This study provides evidence on the investment performance of real estate relative to bonds and common stocks in the U.S. Using quarterly total return data over the years 1978-2012, the analyses show that, over this period, on a risk-adjusted basis real estate was the top performing asset class, outperformed both bonds and stocks. Real estate, in the Eastern U.S., was the top performer, outperforming both bonds and stocks. The results also show that real estate provided a partial hedge against actual and expected inflation, and that, in combinations with bonds and stocks, it made up a major share of optimal portfolios constructed for various target returns within the Markowitz optimization framework

scholarly journals Modelling the drivers of the UK multi-let industrial property market: an exploratory study

2020 ◽  
Vol 38 (4) ◽  
pp. 585-596
Author(s):  
David Higgins ◽  
Tsvetomira Vincent ◽  
Peter Wood
Keyword(s):  
Real Estate ◽  
Hedonic Pricing ◽  
Valuable Insight ◽  
Pricing Model ◽  
Property Market ◽  
Industrial Property ◽  
Content Type ◽  
Hedonic Pricing Model ◽  
Significant Difference ◽  
Asset Class

PurposeMulti-let industrial (MLI) estates are an emerging £15 billion UK real estate asset class that can offer attractive returns, a diversified income base, constrained supply and extensive management opportunities to add value within an operational platform. This investment appeal is supported by the evolving MLI occupier market with the growth of small to medium enterprises (SME) requiring modern urban business space driven in part by technology advances offering new streams of supply chain connectivity between businesses and potential clients at a local level.Design/methodology/approachTo understand more about MLI properties, this study utilises a hedonic pricing model to quantify property values as a function of defined variables. The dataset used for this research is a sample portfolio of 26 multi-let industrial properties. The dataset was analysed alongside eleven physical, financial and locational factors. Interestingly, the hedonic pricing model results showed that only four characteristics are value-affecting across the selected properties: namely (1) Granularity of the property income, (2) Distance from the nearest motorway, (3) Distance to the nearest town centre and (4) Gross internal floor area. A chi–test confirmed that there was no significant difference between the modelled values and the supplied property valuations.FindingsThis preliminary study offers valuable insight into MLI property market drivers and could easily form a simple decision-making tool to examine potential MLI opportunities in this developing real estate asset class.Originality/valueIn detailing these key MLI property features, current research is limited and focused primarily on market commentary. New knowledge on the MLI property market can provide a platform creating interesting opportunities for fund managers with an intensive management engagement strategy.

scholarly journals Crowdfunding REITs: a new asset class for the real estate industry?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lucia Gibilaro ◽  
Gianluca Mattarocci
Keyword(s):  
Real Estate ◽  
The United States ◽  
Individual Investors ◽  
Diversification Strategy ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Sector ◽  
Real Estate Investments ◽  
Asset Class

PurposeThe paper aims to study the performance of crowdfunding REITs with respect to traditional REITs in order to evaluate the differences in the risk–return profile and their usefulness for a diversification strategy within the indirect real estate investments.Design/methodology/approachThe paper considers the crowdfunding REITs introduced after the JOBS act in the United States and evaluates their performance and risk during the time period 2016–2018. Performance achieved by crowdfunding REITs is compared with other types of REITs in order to evaluate their usefulness for constructing an optimal portfolio strategy based on a standard mean variance approach.FindingsResults show that the performance of crowdfunding REITs is more stable over time with respect to other REITs and the lack of correlation with traditional REITs may be exploited for constructing a more efficient diversified portfolio of indirect real estate investments.Practical implicationsCrowdfunding REITs have different performance with respect to standard REITs and, especially individual investors, may benefit from including this new investment opportunity in their portfolio.Originality/valueThe paper is the first study on the performance of the crowdfunding REITs that is evaluating their usefulness for a diversification strategy within the real estate sector.

scholarly journals The Time-Varying Nature of Reits

2018 ◽  
Vol 26 (1) ◽  
pp. 26-38
Author(s):  
Bing Zhu
Keyword(s):  
Real Estate ◽  
Time Varying ◽  
Property Market ◽  
True Nature ◽  
Optimal Weights ◽  
Long Run ◽  
Asset Portfolio ◽  
Asset Class ◽  
Informational Environment

Abstract This paper investigates changes in the nature of REITs by estimating the time-varying long-run relationship among securitized real estate, direct real estate, and stock performance. The informational environment of U.S. REITs has matured gradually since their introduction. As more information on this asset class has become available, the “true” nature of REITs has thus become more apparent. We find that the long-term elasticity of direct real estate total returns on REIT total returns has increased since 1980, and became significant at the beginning of the 1990s, while the elasticity of general equity total returns remained insignificant. During the 2000s, the underlying property market was able to predict nearly 30% of REIT variance in the long term. Consequently, ignoring changes in the “nature” of REITs may lead to an underestimation of the influence from the underlying property market, and misspecification of the optimal weights in the long-term inter-asset portfolio.

scholarly journals The real estate risk fix: Residential insurance-linked securitization in the Florida metropolis

2020 ◽  
Vol 52 (6) ◽  
pp. 1131-1149 ◽  
Author(s):  
Zac J. Taylor
Keyword(s):  
Real Estate ◽  
Climate Risk ◽  
Real Estate Finance ◽  
Risk Capital ◽  
Public And Private ◽  
The Real ◽  
The Real Estate ◽  
Hurricane Wind ◽  
Asset Class ◽  
Spatial Fix

Insurance-linked securitization (ILS) plays an increasingly important role in the protection of valuable real estate markets from devaluation due to climate risk. This paper critically investigates ILS in the Florida context, where billions of dollars of residential hurricane wind exposure are securitized on behalf of re/insurers and institutional investors each year. Building on Harvey’s seminal concept of the spatial fix, it is argued that ILS represents a real estate risk fix. ILS transforms uncertain property catastrophe exposures into a liquid asset class, and in doing so turns institutional investor funds into re/insurance capacity for capital-hungry ‘peak peril’ re/insurers. Securitization helps to sustain the circulation of capital through risky built environments by absorbing the catastrophe exposures of mortgages and other forms of property-linked finance. In this way, ILS provides a fix for the Harveyian spatial fix, one which momentarily offsets growing environmental barriers to property-led accumulation. The paper shows how specific modes of urbanization and property finance, waves of ‘natural’ catastrophe, patterns of public and private institutional intervention, transnational flows of risk capital, and the creation of new market-making devices have constituted ILS as a provisional (if extractive) fix. To this end, the paper furthers our conceptual and empirical understandings of the operation of ILS and re/insurance at specific urban conjunctures, while also highlighting key dilemmas associated with securing the real estate-finance system from climate risk.

Real Estate as an Asset Class

2003 ◽  
pp. 659-689
Author(s):  
Matthias Thomas ◽  
Claudia Aumann
Keyword(s):  
Real Estate ◽  
Asset Class

Equity Release Mortgages

2017 ◽  
Author(s):  
Radu S. Tunaru
Keyword(s):  
Real Estate ◽  
Elderly People ◽  
Long Term Care ◽  
Term Care ◽  
New Frontier ◽  
The Future ◽  
Asset Class ◽  
Reverse Mortgages

This chapter is dedicated to equity reversemortgages,which are greatly affected by negative equity so implicitly by real-estate risk. For reverse mortgages negative equity is not a trigger for defaults as with standard mortgages. The lenders may be able to overcome negative equity situations if the loans are not terminated during a period of negative equity. Reversemortgages open a new frontier for applications of real-estate derivatives. They are an important asset class for the future and they will facilitate a better distribution of risks in society, helping elderly people to overcome cash provision problems and also helping governments to reduce the burden of increasing costs for long-term care.

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