scholarly journals DIVERSIFICATION BENEFITS IN THE FINNISH COMMERCIAL PROPERTY MARKET

2009 ◽  
Vol 13 (1) ◽  
pp. 23-35 ◽  
Author(s):  
Heidi Falkenbach
Keyword(s):  
Real Estate ◽  
21St Century ◽  
Portfolio Theory ◽  
Early Years ◽  
Property Market ◽  
Commercial Property ◽  
Main Motivation ◽  
Real Estate Investments ◽  
Asset Portfolio ◽  
In The Beginning

The Finnish commercial property market internationalised rapidly in the beginning of the 21st century. According to the portfolio theory and previous research on international property investments, the main motivation factor driving international real estate investments is the possibility to reach diversification benefits. The paper discusses the diversification benefits offered by the Finnish property market in its early years of internationalisation. As international real estate investors in the Finnish property market include investors with both real estate only, as well as mixed‐asset portfolios, the diversification benefits are studied both in terms of a Finnish mixed-asset portfolio, as well as international real estate portfolio. Santruka XXI a. pradžioje Suomijos komercinio nekilnojamojo turto rinkoje sparčiai vyko tarptautiniai procesai. Remiantis portfelio teorija ir ankstesniais tyrimais apie tarptautines investicijas i nekilnojamaji turta, pag rindinis veiksnys, kuris skatina tarptautines nekilnojamojo turto investicijas ‐ tai galimybe gauti diversifi kacijos teikiama nauda. Darbe aptariama, kokia nauda siūle Suomijos nekilnojamojo turto rinka ankstyvaisiais internacionalizacijos metais. Kadangi kai kurie Suomijos nekilnojamojo turto rinkoje veikiantys tarptautiniai nekilnojamojo turto investuotojai užsiima tik nekilnojamuoju turtu, o yra ir tokiu, kurie turi mišraus turto portfelius, diversifi kacijos nauda nagrinejama ir pagal Suomijos mišraus turto portfeli, ir pagal tarptautini nekilnojamojo turto portfeli.

scholarly journals International Real Estate Review

2020 ◽  
Vol 23 (2) ◽  
pp. 211-234
Author(s):  
Kwabena Mintah ◽  
◽  
Woon-Weng Wong ◽  
Peng Yew Wong ◽  
◽  
...  
Keyword(s):  
Real Estate ◽  
Initial Study ◽  
Property Market ◽  
Commercial Property ◽  
Cross Border ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Real Estate Investments ◽  
The Impact

The purpose of this study is to evaluate the impact of cross border real estate investments on the performance of the direct commercial property market in Australia. Using an autoregressive distributed lag (ARDL) model, factors including volume of cross border real estate investments, real gross domestic product (RGDP), office stock, and vacancy and net absorption rates are examined for their impact on total returns. The results indicate that traditionally established long-term drivers, including RGDP, office stock, and vacancy and net absorption rates, are still relevant. It is found that cross border real estate investments have impact on the performance of the direct commercial office property market in Australia. The results and findings would help property investors, developers, policymakers, and stakeholders in decision making around property investments. This research is an initial study that focuses on the impact that cross border real estate investments have on the performance of the direct commercial/office property market in Australia.

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 HOLISTIC APPROACH TO THE SUSTAINABLE COMMERCIAL PROPERTY BUSINESS: ANALYSIS OF THE MAIN EXISTING SUSTAINABILITY CERTIFICATIONS

2020 ◽  
Vol 24 (4) ◽  
pp. 251-268
Author(s):  
Aliane Vieira de Castro ◽  
Gema Ramírez Pacheco ◽  
Fco. Javier Neila González
Keyword(s):  
Real Estate ◽  
Green Building ◽  
Holistic Approach ◽  
Building Performance ◽  
Property Market ◽  
Sustainable Building ◽  
Commercial Property ◽  
Business Operations ◽  
Key Aspects ◽  
Corporate Social

Sustainability is no longer a new concept. However, applying, measuring and reporting on the sustainability initiative is still a somewhat confused and subjective issue. There is a huge variety of sustainability guidelines and green building schemes of differing natures, meanings and wordings. Despite this, there is no one guideline providing a crossreference between corporate social responsibility and green building performance to help the commercial property market completely incorporate sustainability into their activities. Therefore, this paper intends to link sustainability, real estate environmental, social, and governance (ESG) and sustainable building in order to help companies internalise this concept in all areas of their operations aligning it with their strategic planning. From desk-based research, this proposal examines and compares key aspects of the main schemes in existence, which are currently evolving in the definition, assessment and report of sustainability at the corporate and built environment level. This approach provides key information to help professionals get a better understanding of the specific changes which sustainability brings about in their corporate process, strategies, investment decisions, daily business operations as well as their property management. The insights presented here can support real estate companies to develop comprehensive communication flows and tools for the measurement and disclosure of sustainability data.

The significance and performance of US commercial property in a post-GFC context

2017 ◽  
Vol 35 (6) ◽  
pp. 575-588 ◽  
Author(s):  
Muhammad Jufri Marzuki ◽  
Graeme Newell
Keyword(s):  
Institutional Investors ◽  
Investment Strategy ◽  
Portfolio Diversification ◽  
Investment Opportunity ◽  
Property Market ◽  
Content Type ◽  
Commercial Property ◽  
The Us ◽  
Asset Portfolio

Purpose US commercial property is an important investment opportunity for institutional investors. The purpose of this paper is to assess the significance, risk-adjusted performance and portfolio diversification benefits of US commercial property (both direct property and REITs) in a mixed-asset portfolio over 1994-2016. The 2009-2016 post-GFC recovery of US commercial property is specifically highlighted. Design/methodology/approach Using quarterly total returns, the risk-adjusted performance and portfolio diversification benefits of US commercial property over 1994-2016 are assessed. Efficient frontier and asset allocation diagrams are used to assess the role of US commercial property in a mixed-asset portfolio. Sub-period analysis over 2009-2016 is used to assess the post-GFC recovery of US commercial property. Findings US commercial property delivered mixed results over 1994-2016; direct property gave the best risk-adjusted performance, while US-REITs performance was hampered by high volatility. Since the GFC, both forms of US commercial property have delivered stronger risk-adjusted returns with improved diversification benefits, especially in the context of an inter-property investment strategy. However, US-REITs did not improve their diversification benefits with the stock market over this period. This sees US commercial property as an important component in the US mixed-asset portfolio in the post-GFC environment, with a much stronger role exhibited by US direct property in the post-GFC mixed-asset portfolio. Practical implications US commercial property emerged from the GFC as a stronger and more robust property investment opportunity, with both the direct property and US-REITs fully recovered to their pre-GFC performance level in 2012. The results highlight the major role of US commercial property in a US mixed-asset portfolio in the post-GFC context. The superior risk-adjusted performance of US commercial property sees both direct and listed US commercial property contributing significantly to the mixed-asset portfolio throughout the entire risk-return spectrum, particularly direct property. Given the increased capital flows into the US property market since the GFC, this is particularly important as many investors, both local and international, use direct and listed property investment opportunities as conduits for their significant US commercial property exposure. Originality/value This paper is the first published empirical research analysis that specifically assessed the post-GFC performance and role of US commercial property in a mixed-asset portfolio. This research enables empirically validated, more informed and practical property investment decision making by institutional investors regarding the strategic role of US commercial property in a mixed-asset portfolio in a post-GFC context.

Performance of commercial and residential real estate investments in Ibadan property market, Nigeria

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olatoye Ojo ◽  
Daniel Ibrahim Dabara ◽  
Michael Tolulope Adeyemi Ajayi
Keyword(s):  
Real Estate ◽  
Causal Relationship ◽  
Investment Decisions ◽  
Least Square ◽  
Residential Real Estate ◽  
Property Market ◽  
Content Type ◽  
Holding Period ◽  
Real Estate Investments ◽  
Inflation Hedging

PurposeThis study examined the performance of commercial and residential real estate investments in the Ibadan property market to provide information for investment decisions.Design/methodology/approachThe study used a mixed research design (qualitative and quantitative). Data were obtained employing in-depth interviews with randomly selected sixteen estate surveyors and valuers practising in the Ibadan property market. Data for the study were analysed using the phenomenological thematic content analysis. Similarly, data on rental and capital values were translated to income, capital and holding period returns. The Kwiatkowski–Phillips–Schmidt–Shin (KPSS) and Philip–Perron (PP) models were used for unit root analysis. Ordinary least square (OLS) regression model was used to test for inflation-hedging characteristics, and the Granger causality tests were carried out to analyse the causal relationship between the variables.FindingsThe study revealed that the Ibadan property market is still immature. For the return components, the study found that the Ibadan property market provided mean holding period returns of 10.82%, 14.31 and 8.29% for office, shop and residential property types, respectively. The study also revealed that the selected property types are perverse hedges against inflation. Similarly, the study showed a unidirectional causal relationship between inflation and returns on the selected property types.Practical implicationsResults of this study revealed the peculiar nature of the Ibadan property market; findings from the survey can be used as a guide for investment decisions by foreign and domestic investors. Shrewd investors can take advantage of the high returns provided by the real estate assets in the Ibadan property market (by investing in the property market) to obtain high returns and expand their investment portfolio.Originality/valueThis study is the first to examine, in an eclectic and comparative context, the performance of commercial and residential properties in the Ibadan property market from the perspective of its market maturity level, returns profile, as well as its inflation-hedging characteristics. Findings from the study will equip both individual and institutional investors with valuable information for investment decisions.

scholarly journals VALUE STABILITY IN LOCAL REAL ESTATE MARKETS

2010 ◽  
Vol 14 (3) ◽  
pp. 191-199 ◽  
Author(s):  
Tom Kauko
Keyword(s):  
Real Estate ◽  
General Concept ◽  
Quality Level ◽  
Economic Sustainability ◽  
Residential Areas ◽  
Property Market ◽  
Urban Context ◽  
Real Estate Markets ◽  
Development Framework ◽  
Real Estate Investments

Whenever real estate investments are considered in a more sustainable development framework, the issue is about finding the appropriate criteria of physical, social and economic sustainability. While this topic has business and social policy relevance, academic work on defining the relevant indicators is yet speculative, due to a shortage of standard definitions and relevant data. The general concept of economic sustainability of the property market comprises a variety of more particular measures. In order to design a valid methodology for assessment purposes, in this study a property value stability trend is determined for specific residential areas. This indicator is composed of property sales prices and the quality level of the existing stock in a given area. The findings from a selected demonstration of the development of price‐to‐quality ratios in an urban context have implications for further research as well as for practice. Santruka Intensyvejant pasaulines klimato kaitos darbotvarkei, investicijos i nekilnojamaji turta daugelyje miesto teritoriju jau traktuojamos atsižvelgiant i darnesne pletros sistema. Keliamas klausimas del fizines, socialines ir ekonomines investiciju darnos. Galimybe statyti naujus pastatus arba atnaujinti senus, šios veiklos igyvendinimo galimybes ir būtinybe priklauso nuo miesto rajono ir nuo paties miesto pobūdžio, nuo institucines sarangos ten, kur investuojama. Be to, svarbi būstuose gyvenančiu žmoniu gyvenimo kokybe ir ju kasdiene gyvenamoji aplinka. Nors ši tema aktuali verslui ir socialinei politikai, mokslinis darbas nustatant aktualius ekonominius, fizinius ir socialinius vertinimo kriterijus tebera spekuliatyvus, kai trūksta standartiniu apibrežimu ir reikiamu duomenu. Šiame straipsnyje aptariami keli būdingi klausimai ir siūlomos kelios perspektyvios veiklos kryptys su netiesioginiais siūlymais kurti tyrimu metodika, taip pat praktines kryptys.

scholarly journals Market maturity: China commercial real estate market

2015 ◽  
Vol 33 (1) ◽  
pp. 4-18 ◽  
Author(s):  
Qiulin Ke ◽  
Karen Sieracki
Keyword(s):  
Real Estate ◽  
Emerging Market ◽  
Evolutionary Process ◽  
Real Estate Market ◽  
Commercial Real Estate ◽  
Property Market ◽  
Content Type ◽  
Commercial Property ◽  
High Government ◽  
International Investors

Purpose – The purpose of this paper is to explore the evolutionary path to market maturity that China property market has taken over the last few decades. The focus is on the commercial real estate markets in Beijing and Shanghai. It will help international investors understand the market environment, risk and market activity process. Design/methodology/approach – In this research, the authors apply the market maturity framework and its key determinants based on previous work undertaken by Keogh and D’Arcy (1994) and Chin et al. (2006) for the analysis of Chinese commercial property market. Particular focus is on Beijing and Shanghai. The questionnaire is designed to obtain fair and objective views from international property consultancy firms active in Beijing and Shanghai markets. There are not many of these international property consultancies. The reason why this type of business was selected was to insure that the business had an understanding of China’s place in the global commercial real estate market as this market matures from its emerging market status. Findings – The findings reveal that the respondents felt the commercial property markets in Shanghai and Beijing were now moderately mature. However, issues such as poorer level of standard market information, development instability, low transparency of the legal system, high taxes and high government invention still existed in China’s commercial property market, therefore hindering its progress towards greater market maturity. Research limitations/implications – The small same size of the survey is the major limitation of the research. Practical implications – International investors and analysts can benefit from the research findings through a better understanding of the behaviour and trends in this unique market which will be reflected in their decision-making process. Originality/value – An explorative approach was used due to the lack of data to examine the perception of China’s commercial property market’s evolution and maturity. The findings can then be placed in the context of other Southeast Asian cities. The evolutionary process of China’s property market is rarely examined in previous studies of China property market due to the lack of data and transparency.

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