scholarly journals The Uncertainty Index and Foreign Direct Real Estate Investments in Developing Economies

2021 ◽  
Vol 5 (4) ◽  
pp. 512-520
Author(s):  
Haydar Karadag
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Real Estate ◽  
Developing Economies ◽  
Foreign Investors ◽  
The Real ◽  
The Real Estate ◽  
Uncertainty Index ◽  
Real Estate Investments ◽  
The Exchange Rate

Attainment of standards in a country’s real estate market to meet international investors’ expectations contributes significantly to the real estate sector. However, in developing economies characterized by an environment of uncertainty where stability cannot be achieved, direct investments in real estate can bring returns to foreign investors. This is because economic uncertainty in developing countries raises the exchange rate. An increase in the exchange rate keeps real estate prices in developing countries relatively low. Foreign investors then take advantage of the low prices to invest in real estate in that country. The study aims to research whether the uncertainty in developing countries increases the foreign direct real estate investments. The study examines the relationship between the uncertainties in selected developing economies in Europe and the real estate investments by foreigners in the period 2008–2018. Gengenbach, Urbain, and Westerlund Panel Cointegration test and PDOLS coefficient estimation methods were used in the study. According to the analysis results, a 1% increase in the uncertainty index in the economies examined increases foreign direct investments by 5.731%. Since this study is one of the most detailed studies measuring foreign direct real estate investments under uncertainty conditions in the economy, it contributes to the literature. To sustainably increase foreigners’ direct real estate investments in developing countries, economic and political stability should be prioritized. Facilitating the bureaucratic process, providing tax reductions, making real estate suitable for demand, following the appropriate price policy, and making various environmental regulations will also increase foreigners’ direct real estate investments. Doi: 10.28991/esj-2021-01293 Full Text: PDF

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 Exchange Rate Risk On The Mortgage Market

2015 ◽  
Vol 23 (4) ◽  
pp. 74-84
Author(s):  
Ewa Siemińska ◽  
Małgorzata Krajewska
Keyword(s):  
Exchange Rate ◽  
Real Estate ◽  
Financial Market ◽  
Real Estate Market ◽  
Exchange Rate Risk ◽  
Currency Risk ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
National Bank

Abstract Strict connections of the real estate market with the financial market are an unquestionable phenomenon at every level of investing, starting from the lowest individual investor, and finishing with national and transnational players. One of the more interesting examples of such a dependency is the problem of the risk of financing the real estate market, which results from numerous macro-, mezo- and microeconomic conditions, including, inter alias, the phenomenon of capital migration, supranational bank regulations or the development of currency exchange rates on world markets. The most recent example of such a dependency is, among others, the decision of the National Bank of Switzerland from the beginning of 2015 to abandon the Swiss franc-euro cap, which will go down in the history of the world financial market. Its global effects will surely be very difficult to assess, while the resulting turbulences and consequences for many (institutional, corporation and individual) market participants cause, on the one hand, awaiting a reaction and actions aimed at helping entities affected by the consequences of the mentioned decision and, on the other, many questions and doubts. The paper will present current selected aspects concerning currency risk in the context of financing the residential real estate market and the directions of actions prepared in reaction to the abovementioned risk. Polish conditions will be presented against the background of examples of foreign solutions. The aim of the work is to present: the essence of currency risk in the context of the current financial situation of the Polish banking sector, the most important directions of proposals for remedial actions aimed at mitigating the effects of the significant increase in the exchange rate of the Swiss franc in relation to the Polish currency, a short overview of selected solutions/regulations regarding the exchange rate risk of mortgages taken out in a foreign currency in other countries. The method employed was the critical analysis of the most-recent reports and recommendations of the National Bank of Poland, Polish Financial Supervision Authority, Polish Banking Union, and other experts on the subject of financing the real estate market, as well as a comparative analysis of solutions regarding currency risk in selected countries.

scholarly journals Factors Affecting Real Estate Prices – Evidence From Macroeconomic Data In Vietnam

2020 ◽  
Vol 55 (4) ◽  
Author(s):  
Nguyen Thi Hoang Yen ◽  
Nguyen Thanh Hung ◽  
Le Doan Minh Duc ◽  
Vo Hoang Ngoc Thuy ◽  
Ngo Thi My Thuy
Keyword(s):  
Real Estate ◽  
Developing Economies ◽  
Real Estate Market ◽  
Economic Life ◽  
Policy Implications ◽  
Macroeconomic Factors ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Real Estate Prices

The real estate market is important in socio-economic life and is even more important for countries with open, transition, and developing economies like Vietnam. The price of real estate is an important factor in the market and is affected by many macroeconomic factors. Using quarterly data from the first quarter of 2005 to the fourth quarter of 2018, the authors construct realistic test pattern matching purposes, requires analysis and possibility of possible sources of data collected in Vietnam on the relationship between real estate price index and factors of economic growth, inflation, money supply and average long-term lending rate in the market. Experimental results demonstrate that these macroeconomic factors have a significant impact on real estate prices in Vietnam. From here, the article provides macroeconomic policy implications for the State of Vietnam in stabilizing real estate commodity prices in particular and developing the real estate market in general.

scholarly journals The value relevance of fair value accounting: Evidence from the real estate industry

2012 ◽  
Vol 9 (4-4) ◽  
pp. 408-417
Author(s):  
Mukesh Garg ◽  
Dean Hanlon
Keyword(s):  
Real Estate ◽  
Value Relevance ◽  
Balance Sheet ◽  
Fair Value ◽  
Fair Value Accounting ◽  
The Real ◽  
The Real Estate ◽  
Incremental Value ◽  
Real Estate Investments ◽  
Gains And Losses

This study examines whether investors use the fair value of real estate investments in the balance sheet, and unrealized fair value gains and losses in the income statement, in their price setting process. Drawing on sample firms from the real estate development industry in New Zealand, the results of the current study suggest that: (1) unrealized fair value gains and losses on real estate investments have incremental value relevance compared to historical cost earnings, controlling for the method of recognition of the fair value gain or loss; and (2) current fair value of real estate investments has incremental value over historical book value of real estate investments. Such investigation is important given the current international debate concerning fair value accounting

scholarly journals ANALISIS PENGARUH FAKTOR INTERNAL DAN EKSTERNAL TERHADAP HARGA SAHAM (Studi Kasus pada Perusahaan Sektor Property dan Real Estate yang Terdaftar di BEI)

2020 ◽  
Vol 4 (4) ◽  
Author(s):  
Bella Anindita Apsari
Keyword(s):  
Exchange Rate ◽  
Real Estate ◽  
Stock Prices ◽  
Significant Positive Effect ◽  
Return On Equity ◽  
The Real ◽  
The Real Estate ◽  
Negative Effect ◽  
Estate Property ◽  
Positive Effect

The existence of capital market in Indonesia can be seen from the number of investors who invest their shares in property and real estate sectors. From the perspective of the macro economy, the property sector has a very broad scope of business so that the stimulation of business property in turn will affect the economic growth and work opportunities. Property also be an important indicator of economic health of a country. In this research, are considered internal factors that affect stock prices and the real estate property sector is to look at financial ratios such as the ratio of Return On Equity (ROE) dan Earning Per Share (EPS) while external factors were used in this study is variable exchange rate and BI Rate This study uses 8 company property and real estate sector with the best issuer ratings, with a study period of years 2010-2014 (annual period). The technique analysis panel regression. The results of this research is the Return On Equity (ROE) have a a significant negative effect on stock prices and the real estate property sector, Earning Per Share (EPS) have a a significant positive effect on stock prices and the real estate property sector, exchange rate have a not significant positive effect on stock prices and the real estate property sector, BI Rate have a a not significant negative effect on stock prices and the real estate property sector.

scholarly journals Blockchain based Real Estate using Smart Contracts

2020 ◽  
Vol 10 (6) ◽  
pp. 48-51
Author(s):  
Ryan Fernandes ◽  
Andrew Fernandes ◽  
Himani Jawale
Keyword(s):  
Real Estate ◽  
Current System ◽  
Real Estate Market ◽  
Sensitive Information ◽  
The Real ◽  
The Real Estate ◽  
Security Issues ◽  
Blockchain Technology ◽  
The Real Estate Market ◽  
Real Estate Investments

In today’s world global real estate investments have taken over more than twice the size of the stock market. Even after the dominance of the real estate market there are still a less number of investors due to liquidity and global access to sensitive or critical information. Due to various flaws in security in the current system, the tenants and owners are barely satisfied. The main focus of this paper is to incorporate the use of blockchain in the current real estate market and represent the facilities and advantages it can give to the real estate market. Blockchain based real estate is better because each block contains a cryptic hash of the previous record, a timestamp and transaction data which makes it difficult to forge documents and sensitive information of the investor. Another advantage of blockchain is that it is resistant to any type of data modification.  Blockchain technology can sort out the security issues and forgery incidents that are faced by the real estate market. Also blockchain provides much meaningful assets and insights to the real estate market at a reasonable and stable-priced market. The proposed solution for the selected problem statement is Tokenizing real estate assets refers to a process in which a property owner can offer digital tokens that represent a share of their property. Using a blockchain to track these investments, with each transaction being time-stamped and immutable, makes it possible to limit the risk of fraud.

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