International Real Estate Investment Research Articles

International Real Estate: A Review of Strategic Investment Issues

Executive Summary. This study compares and contrasts the results of two surveys of investors interested in international real estate (European and Southeast Asian). The results provide information on how fund managers currently view international real estate. Furthermore, comments by the respondents highlight the perceptions of the additional risks and problems incurred with international (versus domestic) real estate investment. Since U.S. pension fund investment in international real estate is expected to grow, these results provide valuable insights for investors formulating international real estate investment strategies.

ACADEMIC PAPERS: Are real estate and securities markets integrated? Some Australian evidence

Conventionally, between 5 and 20 per cent of a portfolio is invested in real estate. Whether this is prudent diversification or not depends on whether property and other financial assets markets are integrated. The notion of market integration/segmentation across the economy is of central importance. Disturbances in market fundamentals in a given market generate movements of capital into and out of the affected market. If various markets are well integrated, then it is expected that a high degree of asset substitution will take place, such substitution having a significant impact on price fluctuations in the relevant market. On the other hand, if markets are not integrated, then this has significant implications for portfolio investment where managers seek to develop well‐diversified portfolios as a means of risk reduction. Recent literature has recognized the need to understand and measure the degree of market integration, and research has focused on techniques to do this. Studies have attempted to measure the degree of integration in money and bond markets, real assets markets and among international real estate investment trusts. Uses cointegration techniques to examine the extent to which physical real estate markets and financial assets markets are integrated. Tends to support the notion of market segmentation and, by default, supports the conventional wisdom of diversification between real estate and other financial assets.

Assessing Risk for International Real Estate Investments

Overseas real estate investment has increased considerably in recent years. The assessment of risk for these investments, especially for real estate, has thus become very important. This study asse...

Benchmarking: The Search for Best Practices in Corporate Real Estate

Working with over sixty leading U.S. companies since 1987, LaSalle Partners, an international real estate services and investment firm, has conducted a series of nine benchmarking studies in a vari...