Abstract

Executive Summary. This study reviews the most recent findings on real estate returns, and organizes the reviews into five categories: (1) risk and returns; (2) diversification and portfolio optimization benefits; (3) returns on real estate versus other investments; (4) REITs; and (5) inflation and real estate returns. An annotation of each study is provided and current findings are compared to those of previous studies.Real estate research is broadening to include topics such as market efficiency, REITs and the power of macroeconomic variables in explaining and predicting real estate returns. Discussed are findings on whether real estate provides diversification benefits, real estate returns versus other investments, REIT return performance and real estate as an inflation hedge.

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