scholarly journals The Structure, Conduct and Performance of REITs in Emerging Markets: Empirical Evidence from Nigeria

2020 ◽  
Vol 4 (2) ◽  
pp. 76-97
Author(s):  
Daniel Ibrahim Dabara ◽  
◽  
Olusegun Adebayo Ogunba ◽  
Keyword(s):  
Real Estate ◽  
Granger Causality ◽  
Unit Root ◽  
Investment Decisions ◽  
Real Estate Market ◽  
Least Square ◽  
Unit Root Tests ◽  
Real Estate Investment ◽  
Essential Information ◽  
And Performance

Purpose: This study examines the correlations between the structure, conduct and performance of Real Estate Investment Trusts in Nigeria (N-REITs) with a view to providing information that will enhance and guide real estate investment decisions on N-REITs. Design/Approach: The study population consists of all three REIT companies in Nigeria, namely: Skye Shelter Fund, Union Home REIT and UACN Property Development Company (UPDC) REIT. Secondary data on dividends and share prices of N-REITs; Total Business Revenues (TBR) and Total Individual Expenditure (TIE) on conduct variables were sourced from periodicals of the respective companies covering the period from 2008 to 2016. The data series for the study were analyzed by means of the Kwiatkowski-Phillips-Schimidt-Shin (KPSS) unit root tests, Philip-Perron (PP) unit root tests, Granger Causality tests, and the Ordinary Least Square (OLS) regression. Findings: The study shows a Herfindahl Hischman Index (HHI) that ranged between 41.81% (recorded in 2010) and 100% recorded in 2008. This suggests a high concentration in the N-REITs industry. Similarly, the Granger Causality Test conducted reveals a bi-directional causal relationship between the structure, conduct and performance of N-REITs. Practical Implications: The study provides essential information (on the HHI, return performance and causal relationships) for stakeholders in the real estate sector regarding the influence of structure and conduct on the performance of N-REITs. This information will be valuable for equipping asset managers, insurance companies, pension funds and individual real estate investors in making informed investment decisions. Originality/Value: This study is unique as it is the first to draw a link between the structure, conduct and performance of REITs in an African emerging real estate market; something that has not been considered in previous studies.

scholarly journals The effect of quality market research on the performance / profitability of real estate investment in emerging economies

2020 ◽  
Vol 8 (3) ◽  
pp. 139
Author(s):  
Nworah Joseph Chukwuma
Keyword(s):  
Real Estate ◽  
Market Research ◽  
Developing Economies ◽  
Emerging Market ◽  
Investment Decisions ◽  
Real Estate Market ◽  
Research Report ◽  
Real Estate Investment ◽  
Investment Performance

The ever increasing global competition among real estate investment organizations has it made imperative for industry players to continually invest in real estate market research to guide them in investment decisions. The quality of market research report provided by the market research professional/consultant is expected to reflect on the quality of outcome of investment decisions made by the investors ad invariably affects the marketability and profitability of the investment concerned. This study investigates the effect of quality market research on the marketability and profitability of real estate investment in developing economies taking Lagos-Nigeria, as case study. The study area is Lagos metropolis, southwestern Nigeria, chosen because of its strategic relevance in real estate investment, as emerging market. Research design is cross-sectional type which is descriptive and the study population consists of respondents who are real estate research consultants and real estate investors in the study area. Random sampling technique was applied and research instrument was closed and open-ended structured questionnaire and face-to interviews for the primary data; and Journals, textbooks, published articles and internet for secondary data. Data collected was analyzed using simple descriptive and statistical tools such as frequency distribution tables, charts, percentages, mean scores, pearson correlation, Analysis of variance (ANOVA) as well as Likert scale. The summary of the result of the data analysis shows that market research contributes immensely to the Property Investment Performance in major indices. The result also established healthy relationship between the quality of market research and real estate investment performance showing that the correlation coefficient of 0.240 significant at 10% level. Subsequently, the study recommended among other things, the establishment of data bank for all real estate performance indices; and real estate market research institute by the Federal Government of Nigeria.

scholarly journals The Effect of Quality Market Research on the Marketability and Profitability of Real Estate Investment in Emerging Economies

2019 ◽  
Vol 2 (2) ◽  
Keyword(s):  
Real Estate ◽  
Market Research ◽  
Developing Economies ◽  
Emerging Market ◽  
Investment Decisions ◽  
Real Estate Market ◽  
Research Report ◽  
Real Estate Investment ◽  
Investment Performance

The ever increasing global competition among real estate investment organizations has it made imperative for industry players to continually invest in real estate market research to guide them in investment decisions. The quality of market research report provided by the market research professional/consultant is expected to reflect on the quality of outcome of investment decisions made by the investors ad invariably affects the marketability and profitability of the investment concerned. This study investigates the effect of quality market research on the marketability and profitability of real estate investment in developing economies taking Lagos-Nigeria, as case study. The study area is Lagos metropolis, southwestern Nigeria, chosen because of its strategic relevance in real estate investment, as emerging market. Research design is cross-sectional type which is descriptive and the study population consists of respondents who are real estate research consultants and real estate investors in the study area. Random sampling technique was applied and research instrument was closed and open-ended structured questionnaire and face-to interviews for the primary data; and Journals, textbooks, published articles and internet for secondary data. Data collected was analyzed using simple descriptive and statistical tools such as frequency distribution tables, charts, percentages, mean scores, pearson correlation, Analysis of variance (ANOVA) as well as Likert scale. The summary of the result of the data analysis shows that market research contributes immensely to the Property Investment Performance in major indices. The result also established healthy relationship between the quality of market research and real estate investment performance showing that the correlation coefficient of 0.240 significant at 10% level. Subsequently, the study recommended among other things, the establishment of data bank for all real estate performance indices; and real estate market research institute by the Federal Government of Nigeria.

scholarly journals Genetic Algorithm as Automated Valuation Model Component in Real Estate Investment Decisions System

2020 ◽  
Vol 28 (4) ◽  
pp. 1-14
Author(s):  
Aneta Chmielewska ◽  
Jerzy Adamiczka ◽  
Michał Romanowski
Keyword(s):  
Genetic Algorithms ◽  
Real Estate ◽  
Investment Decision ◽  
Biological Evolution ◽  
Investment Decisions ◽  
Careful Analysis ◽  
Real Estate Market ◽  
Real Estate Investment ◽  
Automated Valuation ◽  
The Impact

AbstractEvery real-estate related investment decision making process calls for the careful analysis of available information even though it is often carried out in conditions of uncertainty. The paper attempts to minimize the impact of the factor on the quality of real estate investment decisions through the proposal of application of tools based on the simulation of the process of natural selection and biological evolution. The aim of the study is to analyze the potential of methodology based on genetic algorithms (GA) to build automated valuation models (AVM) in uncertainty conditions and support investment decisions on the real estate market. The developed model facilitates the selection of properties adequate to the adopted assumptions, i.e. individuals best suited to the environment. The tool can be used by real estate investment advisors and potential investors on the market to predict future processes and the proper confrontation of past events with planned events. Even though genetic algorithms are tools that have already found particular application on real estate market, there are still areas that need further studies in the case of more effective uses. The obtained results allow for the possibilities and barriers of applying GA to real estate market analyses to be defined.

scholarly journals The Culture of Amateur Real Estate Investing

2019 ◽  
Author(s):  
Philip Garboden
Keyword(s):  
Real Estate ◽  
Participant Observation ◽  
Prior Experience ◽  
Investment Decisions ◽  
Third Party ◽  
Real Estate Investment ◽  
Real Estate Markets ◽  
Self Sufficiency ◽  
Depth Interviews ◽  
Do So

The majority of rental properties in the U.S. today is owned by small- to medium-sized investors, many of whom enter the trade with little prior experience. This paper considers the cultural factors that motivate these amateurs to purchase real estate–an investment with high risks and relatively poor returns. Drawing on in-depth interviews with 93 investors in three heterogeneous real estate markets, Baltimore, MD, Dallas, TX, and Cleveland, OH, combined with participant observation of 22 real estate investment association meetings (REIAs), this paper finds that amateurs who decide to become investors often do so during periods when their professional identities are insecure or they perceive their retirement portfolios to be insufficient. Through participation in real estate investment associations and other investor networks, they quickly internalize “investor culture,” embracing ideologies of self-sufficiency and risk. “Investor culture”—perpetuated by REIAs--motivates and legitimizes strategies of action that lead to increasingly leveraged investments. Third-party actors, including real estate gurus, paid mentors, and private “hard money” lenders exploit the intersection of insecurity and the propagation of investor culture to profit off amateurs’ investment decisions.

scholarly journals ASSESSING REAL ESTATE INVESTMENT ALTERNATIVES: A MULTI-CRITERIA AND MULTI-STAKEHOLDER DECISION AID TOOL

2020 ◽  
Vol 12 (1) ◽  
Author(s):  
Vasileios A. Mantogiannis ◽  
Fotios A. Katsigiannis
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Investment Decision ◽  
Investment Decisions ◽  
Real Estate Investment ◽  
Solution Approach ◽  
Decision Environment ◽  
Multi Stakeholder ◽  
The Uk ◽  
Severe Uncertainty

Investment decisions in private real-estate demand the consideration of several qualitative and quantitative criteria, as well as the different or even conflicting interests of the participating stakeholders. Meanwhile, certain indicators are subject to severe uncertainty, which will eventually alter the expected outcome of the investment decision. Even though multi-criteria decision making (MCDM) techniques have been extensively used in real-estate investment appraisals, there is limited evidence from the private rented sector, which constitutes a large part of the existing real estate assets. The existing approaches are not designed to capture the inherent variability of the decision environment, and they do not always achieve a consensus among the participating actors. In this work, through a rigorous literature review, we were able to identify a comprehensive list of assessment criteria, which were further validated through an iterative Delphi-based consensus-making process. The selected criteria were then used to construct an Analytical Hierarchy Process (AHP) model evaluating four real world, real estate investment alternatives from the UK private rented market. The volatility of the financial performance indicators was grasped through several Monte Carlo simulation runs. We tested the described solution approach with preference data obtained by seven senior real estate decision-makers. Our computational results suggest that financial performance is the main group of selection criteria. However, the sensitivity of the outcome indicates that location and property characteristics may greatly affect real estate investment decisions.

scholarly journals The changing real estate market transparency in the European real estate markets

2016 ◽  
Vol 34 (4) ◽  
pp. 407-420 ◽  
Author(s):  
Graeme Newell
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Real Estate Market ◽  
Real Estate Investment ◽  
Content Type ◽  
Real Estate Markets ◽  
Market Transparency ◽  
Global Context ◽  
Business Competitiveness ◽  
Risk Dimensions

Purpose – Real estate market transparency is an important factor in real estate investment and occupier decision making. The purpose of this paper is to assess real estate transparency over 2004-2014 to determine whether the European real estate markets have become more transparent in a regional and global context. Design/methodology/approach – Using the JLL real estate transparency index over 2004-2014, changes in real estate market transparency are assessed for 102 real estate markets. This JLL real estate market transparency index is also assessed against corruption levels and business competitiveness in these markets. Findings – Improvements in real estate transparency are clearly evident in many European real estate markets, with several of these European real estate markets seen to be the major improvers in transparency from a global real estate markets perspective. Practical implications – Institutional investors and occupiers see real estate market transparency as a key factor in their strategic real estate investment and occupancy decision making. By assessing changes in real estate transparency across 102 real estate markets, investors and occupiers are able to make more informed real estate investment decisions across the global real estate markets. In particular, this relates to both investors and occupiers being able to more fully understand the risk dimensions of their international real estate decisions. Originality/value – This paper is the first paper to assess the dynamics of real estate market transparency over 2004-2014, with a particular focus on the 33 European real estate markets in a global context to facilitate more informed real estate investment and occupancy decision making.

scholarly journals DEVELOPMENT AND PERFORMANCE OF THE PUBLIC REAL ESTATE INVESTMENT SECTOR IN FINLAND

2013 ◽  
Vol 17 (3) ◽  
pp. 233-247
Author(s):  
Heidi Falkenbach ◽  
Jaakko Niskanen ◽  
Sami Kiehelä
Keyword(s):  
Real Estate ◽  
Commercial Real Estate ◽  
Market Participant ◽  
Real Estate Investment ◽  
The Public ◽  
The Past ◽  
Equity Investments ◽  
Historical Performance ◽  
And Performance

The article studies the development of the public real estate equity sector. The paper describes and analyses the legislative development regarding the sector and the vehicles provided. It discusses the past development of public commercial real estate equity investments in Finland and their role as a market participant. In addition, the paper analyses the historical performance of the sector.

scholarly journals SIGNIFICANCE AND PERFORMANCE OF PROPERTY MARKETS IN MALAYSIA

2021 ◽  
Vol 19 (17) ◽  
Author(s):  
Mohd Haris Yop
Keyword(s):  
Real Estate ◽  
Business Environment ◽  
Real Estate Market ◽  
Study Data ◽  
Asia Pacific ◽  
Property Market ◽  
Transparency International ◽  
And Performance ◽  
Environment Index ◽  
Property Markets

The importance of the global real estate market has been widely debated over the last decade. Prior discussion has focused on various aspects of analysis used to evaluate the performance of the property market, such as statistical analysis, surveys, academic or industrial literature. As a result, it is also necessary to examine the global and Asian property markets while also evaluating the significance and performance of the Malaysian property market in comparison to other Asian markets to determine Malaysia's international contribution to the global property market. The performance of Malaysia's property market from 2015 to 2018 was examined in this study. Data was gathered using Thomson Router Data Stream from Real Capital Analytic, Asia Pacific Real Estate Association (APREA), World Economic Forum, and Transparency International, among others. The study's findings will extend knowledge not only of the performance and significance of the Malaysian property market, but also of GDP growth, inflation rate, market ranking global, competitiveness business environment index, corruption perception, and risk and transparency index in Malaysia and across Asian countries. The overall results indicate that the performance and signs of the Malaysian real estate market were better compared to other Asian and developing markets.

Sign in / Sign up

Export Citation Format

Share Document