Real Estate Investment Market Research Articles

The Impact of Inflation on Real Estate Investment Perfomance And Effective Investment Decisions

Purpose: This study aims to examine the impact of inflation on key variables of real estate investment performance and investment decisions. Theoretical Reference: This paper considers several models of real estate investment performance indicators because the effect of inflation on key variables of real estate investment performance is an important factor in investment decisions. Since effective investment decision is key to avert investment loss especially during inflation period, this paper follows the suggestions by Otegbulu (2022) and Georgiv, et al (2002) that property incomes and values are not static during periods of inflation bur responds to economic dynamics, and could infact trigger favourable investment opportunities in real estate. This paper therefore follows these models/suggestions of Otegbulu (2022) and Geoargiv, et al, (2002) to examine several real estate investment to offer appropriate reflection of how inflation impacts of incomes from real estate investment. Method: Data collected were analysed using Pearson Correlation Analysis to determine the relationship between inflation rate and real estate investment performance (measured by annual returns). Regression analysis was also employed on the data to determine the level of contribution or degree of impact of inflation on real estate performance. Also data collected on the exchange rate and real estate performance over the study period were analysed using Pearson Correlation Analysis to determine the relationship between exchange rate and real estate investment performance (measured by annual returns on investment). Regression analysis was also employed on the data to determine the degree of impact of exchange rate on real estate investment performance. Data collected for the analysis and hypotheses testing were secondary data over a period from 2005 – 2022. Result: The study reveals that real estate investment market generates average total annual returns of 21.39% under average inflation rate of 12.5%. The test statistics (Pearson Correlation) results shows that the higher the inflation rate, the lower the performance of the real estate investment. Also, the study reveals that as inflation persists causing exchange rate fluctuations, the test statistics (Pearson Correlation) results shows that higher exchange rate causes lower performance of real estate investment. This could be because more than 90% of the real estate construction materials in the study are imported. Conclusion: It is clear and obvious that inflation impacts highly on real estate and capable of distorting projections in property investment. Rational investors must therefore factor in inflation risk in investment decisions. The study has shown that inflation has significant impact on annual returns of real estate and consequently affects investment performance. The study concluded that the higher the inflation, the lower the performance of the real estate investment and that the continuous rise in inflation rate reduces the purchasing power of the local currency leading to local currency devaluation. Also, it was concluded that higher exchange rate causes lower performance of the real estate in terms of annual returns. Research Implications: One of the major implications of the findings from this study is that as inflation raises the volatility of local currency which adversely affect the cost of construction, real estate investment performance is hindered. The risk element increases which could lead to project cost over-run, abandonment or increased vacancy rate. Investors become skeptical in making investment decisions because of uncertainties. Policy makers should put in place policies and guidelines that will attract cross-border investors who can take advantage of the local currency devaluation to improve their real estate investment portfolios. Originality/Value: The relationship between inflation rate, exchange rate and real estate performance (measured by rate of returns on the investment) is of great concern for real estate practitioners and investors. The study is original well thought efforts of the authors as contribution to real estate practice and education in developing economies currently being threatened by rising inflation. It is believed that this study will be very useful to global investors who will like to invest in the study area in particular and other emerging markets in general.

A Study on the influence of China's green finance development on real estate prices

At present, the importance of green finance in the world market is becoming increasingly prominent. Various kinds of green products have emerged, and auxiliary policies have also come into being. China is one of the world's largest carbon dioxide emissions and the world's largest investor in new energy. In the face of severe environmental problems and challenges of sustainable development, the Chinese government attaches great importance to the development of green finance, and has adopted a series of positive policy documents and guidance, including the establishment of special funds, providing preferential fiscal and tax policies, and the establishment of a green bond market to promote its role in the financial system. In addition, China has set up a set of green financial standards and evaluation system to guide financial institutions and enterprises to be more transparent and sustainable in environmental risk management and green investment.
 The emergence of green finance has brought a certain impact on the real estate industry, a pillar industry of China's economy. At present, many people in China, especially in some central cities, have speculated on housing prices. This behavior has led to a speculative increase in the real estate market, a rapid rise in housing prices, an excessive consumption of resources, and the aggravation of social inequality. This conflicts the concept of sustainable development and environmental friendliness advocated by green finance. At the same time, the investment in green finance will squeeze out a part of the real estate market share. By directing investment in real estate to the flow of green buildings and energy conservation technologies, green finance can also promote the efficient use of resources and sustainable environmental development.
 Therefore, it is of great significance to deeply study the impact of green finance on real estate. By discussing the application of green finance in the real estate field, effective ways can be found to reduce the consumption of resources in the real estate industry, improve the energy efficiency of buildings, promote the development of green buildings, and guide China's real estate market towards the direction of sustainable development in practice. This is of great practical significance for realizing the dual goal of economic growth and environmental protection.
 Previous scholars have discussed a wide range of factors affecting real estate, including the monetary system, consumption level and so on. The related discussion on green finance also focuses on the impact of the ecological environment and some green products on the financial market. No scholar has specifically discussed the impact of green finance on real estate as a whole.
 Therefore, in order to ensure that the regression results are not affected by the economic turbulence during the epidemic period, this paper selects the relevant data of provinces and cities from 2008 to 2020 to regression the fixed effect model panel, conducts a study on the real estate price, and draws the following basic conclusions: green finance has a negative impact on the real estate price.
 The marginal contribution of this paper is the use of various green coefficient to build green financial index, to explore the influence of green finance as a whole, and make up the green finance influence the lack of the real estate research, to solve the current real estate investment market proportion and rising prices put forward new slow problems.
 The chapters of this paper are arranged as follows: the second part is the literature review, the third part is the experimental design and data, the fourth part is the empirical results, the fifth part is the robustness test, and the sixth part is the conclusion and policy suggestions.

A model of international economic integration in commercial real estate markets

Subject. This article discusses the changes in the global retail market, economic models of interaction, and integration tools in international retail real estate markets. Objectives. The article aims to analyze the development of the global retail market, trends in real estate investment, identify the main patterns of integration mechanisms of international real estate markets, as well as develop an economic model. Methods. For the study, we used the methods of scientific knowledge, induction, analysis, synthesis, and comparison. Results. The article identifies the main trends in the development of the global retail and real estate investment market, formulates the patterns of functioning of investment models of international cooperation in the construction of commercial retail real estate. The article also presents an author-developed model of integration incentives in the retail real estate and retail markets of friendly countries. Relevance. The proposed model for stimulating the retail real estate and retail markets can be applied by representatives of countries experiencing external sanctions pressure on the economy, as well as partner States to launch new ways of international economic integration, improve the investment attractiveness of retail real estate, enhance the retail development, and attract new foreign players.

Real Estate Investment Performance Measurement in Nigeria: Problems and Constraints Facing Professionals in a Highly Active but Opaque Market

Real estate investment plays a vital role in the economic system and the measurement of its performance provides a basis for the analysis of the state of the market and investment decision making at any point in time either at the property level, portfolio level or the property sector level. As a key indicator in the ranking of property markets across the world, real estate investment performance measurement has become an important index in the market maturity framework. However, the Nigerian real estate investment market has continued to be constrained by the absence of recognized performance measurement framework due to several factors. This study, which is part of an extended research, examines the problems and constraints that have militated against the construction of a performance measurement indices for the Nigerian market. The study carries out a questionnaire survey on a sample of 276 Estate Surveying and Valuation firms spread across the Nigerian real estate market. The data collected was analysed using the mean score to rank 21 identified factors that have limited the measurability of the market performance comparative to other globally recognized indices in other real estate markets. Out of the 21 limiting factors, 14 factors were specifically identified as having high impact levels on investment performance measurement of real estate in Nigeria. Among the 14 factors include absence of data unit that tracks market performance by the firms, inadequate information about the real estate market, lack of uniform performance measurement benchmark in the industry, limited knowledge of the performance measures by practitioners and the other factors. The study recommends urgent intervention by the Nigerian real estate professional body and its regulator in partnership with investors by creating an online based real estate specific information and data centre to address the identified problems in order to increase the measurability and transparency of the market.

가치관유형 군집별 부동산 투자특성

The purpose of this study is to examine how the behavior of real estate investment differs according to different types of value clusters. The time of the research was in 2021, when real estate investment was very active and the research project was verified through descriptive statistics and regression analysis using the SPSS 23.0 statistical package. As a result of the research analysis, the value type was classified into four groups: practicality-seeking type, success-seeking type, pleasure-seeking type and material-seeking type. For them, their financial attitudes (recognition of current and future financial possession, financial interest, and financial planning) had different influences on their real estate investment intention, which means each group showed specific aspects on the relationship concerned. Based on this study, we can infer that financial attitude factors of different value types are different in the real estate investment market and the behavior of each cluster is expected to be utilized in providing customized services or developing marketing strategy of real state industry.

Real Estate Management via a Decentralized Blockchain Platform

Blockchain technology is one of the key technological breakthroughs of the last decade. It has the ability to revolutionize numerous aspects of society, including financial systems, healthcare, e-government and many others. One such area that is able to reap the benefits of blockchain technology is the real estate industry. Like many other industries, real estate faces major administrative problems such as high transaction fees, a lack of transparency, fraud and the effects of a middleman including undue influence and commissions. Blockchain enables supporting technologies to overcome the obstacles inherent within the real estate investment market. These technologies include smart contracts, immutable record management and time-stamped storage. We utilize these key properties of blockchain technology in our work by proposing a system that has the ability to record real estate transactions in a private blockchain, using smart contracts. The immutability of the blockchain ledger and transactions can provide a safe space for the real estate business. Blockchain technology can also assist the authentication process by hastening background checks. Personal digital keys are provided to parties that are involved in a contract, thus minimizing the risk of fraud. We also discuss the rationale behind the advantages of using a blockchain in this manner, and how we selected the consensus mechanism for our proposed system.

Appraising Trends in Residential Property Investment Returns Relative to Infrastructure Conditions in Ilorin, Nigeria

Infrastructure serves as an indicator to make real estate investment flourish, build the platform for the real estate investment market to thrive, and also to boost returns on property investment. Despite availability of some infrastructure,the property investment market still plagued with less expected returns as a result of non-functionality of neighborhood infrastructure. The study focused on the appraisal of the trends in residential property investment returns between year 2009 to 2018, relative to infrastructure condition in the study area. Data were obtained from practising real estate firms and residents of selected neighborhoods using a structured questionnaire. The study adopted simple random sampling technique. Out of 2,228 questionnaires administered in the selected neighborhoods, in Ilorin, 664 were returned and valid for the analysis. Descriptive mean method of data analysis was employed, coefficient of variation and spearman’s rank-order correlation model was adopted to comparethe property investment return in the selected areas of Ilorin and to determine the infrastructure indexwith benchmark for the minimum acceptable standard condition. Also, Kendall coefficient of concordance was also used to test the relationship among the ranked factors. The result shows that Sabo-Oke and Fate property market of Ilorin performed better than Adewole Housing Estate and GRA (Government Reservation Area) based onrisk-return ratio analysis, of which Sabo-Oke and Fate revealed the most consistent property market returns while GRA and Adewole Housing Estate residential market showed high level market volatility due to risky nature of the market. Sabo-Oke and Fate markets showed a stable market at minimum risk ranges between 8%-36%. The infrastructure condition indices in GRA and Adewole Housing Estate is higher than ideal condition index (Benchmark), ranges between 82%-92% and 81%-94% when compared with the average international standard at 60%, while infrastructure conditions in Sabo-Oke and Fate found a bit below the average international standard condition. The study also found that the performance of residential property investment is magnificent in the area where there is a frequent market transaction with good and functional infrastructure, as it is discovered across the selected neighborhoods in Ilorin. The study concluded that infrastructure have weighty influence on residential property investment returns relative to functional infrastructure and that, residential property market performance hinges on functional infrastructure and it must be given extreme consideration when making a property investment decision.

An Overview of Data Resources in Real Estate Investment Market and Their Related Issues:Suggestion of Utilising Stated Preference Data

An Overview of Data Resources in Real Estate Investment Market and Their Related Issues:Suggestion of Utilising Stated Preference Data

Research on the Financing Strategy of Real Estate Listed Companies in China

The real estate industry has developed rapidly in recent years. This is certainly related to the strong demand for rapid urbanization in China, but excessive investment has caused the existence of a speculative bubble. A single investment and financing model no longer adapts to changes in the current real estate investment market and capital markets. Therefore, it is urgent to solve the real estate company's financial problems. This paper uses charts, data and other methods to analyze the financing methods of listed real estate companies in China. The first part of this article describes the research background; the second part analyzes the financing strategy of listed real estate companies in China; the third part describes a case; finally, it puts forward policy recommendations on the financing methods of Chinese currently listed real estate companies.

서울 프라임 오피스 이산적 가격시계열보간에 관한 연구*

This study presents an objective method to generate a stable and continuous time series by interpolating and predicting the Seoul prime office price time series. The transaction price time series is important for calculating ROC and capitalization rate in the real estate investment market. It is also essential information for monitoring the market, to establish an investment strategy or creating a benchmark index for rational performance evaluation. The linear interpolation was found to be the most efficient method for interpolating the price time series. The results of analysis using an ETS model showed that the price time series varied with determinants such as level, trend, and seasonality; thus the time series trends of transaction prices for the three major business districts and the other district could be analyzed and forecast by the time series of the decomposed factors. In addition, based on the time series of calculated transaction prices for the three major business districts and the other district, a time series of the average price of Seoul prime offices could be generated. As a result of decomposing this time series through the ETS model, it was found that the transaction price time series rose sharply until 2008 and then turned into a pattern degressive increase. The price time series shows a fixed seasonality in four-year intervals, and it is expected that the time series will enter a new cycle after 3Q of 2015 and that the prices of Seoul prime offices will be adjusted for the next two to three years.

不動産投資市場に与える影響と対応

不動産投資市場に与える影響と対応

The Value Behind the Value-Add: Multifamily Rent Growth After Renovations

With fresh capital entering the real estate investment market, many investors are at a crossroads. They often decide to inject new life into existing properties with significant renovations. However, in a dynamic multifamily market, it is not clear whether or when renovations are justified. In this paper, we examine the effect of apartment renovations on rental growth. The results show that short-term renovation success is not guaranteed. While the scale and necessity of the improvements influence short-term performance, the economic cycle appears to be the most relevant interactive factor.

Problems and Countermeasures for our Country’s Sustainable Development of Real Estate Economy

In 2010 to 2013 the national macro-control policies on the real estate market has a strong compressive force, although the development of China's real estate investment market continued to grow still present, but under the influence of regulation just to be national policy, the growth momentum has slowed . In this paper, based on the current status of the domestic real estate industry, in line with the theoretical basis of sustainable development, in-depth analysis of the domestic real estate industry problems encountered in the development process, made some suggestions and solutions for sustainable development

Rating in the Assessment of Investment Property

Abstract The implementation of rating procedures is associated with searching for tools that provide an objective and standardized assessment of investment risk. For this reason, rating is an important and often essential element of investment decision-making processes which determines the development of the capital market, including the real estate investment market. In the investment property market, not only does rating provide transparency of property risk, but it can also be used for real estate portfolio analysis, investment controlling, and the analysis of factors determining investment decisions (ESV 2012). In this article, the authors present an assessment of the suitability of the rating recommended by TEGoVA for properties considered as active investments, namely properties in the course of development and intended for future development projects. The analysis will include criteria affecting the assessment of property quality and risk, taking into account four classes: market, location, property characteristics, and the quality of cash flows. The study will allow to identify assessment parameters and determine a recommended scope for the analysis of real estate investment potential.

Broker Use and the Price of Liquidity in Commercial Real Estate Investment: Analysis of Transaction Data for London and New York

As is well established, commercial real estate is a highly specific asset: heterogeneous, indivisible and with less information transparency than most other commonly held investment assets. These attributes negatively affect the liquidity of real estate and encourage the use of intermediaries during asset acquisition and disposal. The cost of intermediation, or brokerage, is the single largest non-tax charge to the investor when acquiring assets. Despite this, there is comparatively little work dedicated to this aspect of the commercial real estate investment market in the extant literature. Furthermore, there are few attempts to explain the use of different brokerage models (with differing costs) in different markets.This study presents a detailed analysis of 9,338 real estate transactions in London and New York City from 2001 to 2011. Data are provided by Real Capital Analytics (RCA) and cover over $450 billion of investments in this period. The paper compares brokerage trends in the two cities and tests whether the decision to transact with broker representation varies with location, investor or asset characteristics. Results indicate greater use of brokerage in London, especially by purchasers, and this persists when data are disaggregated by sector, time or investor type, pointing to the role of local market culture and institutions in shaping brokerage models and transaction costs. Furthermore, within each city, the nature of the investors involved appears to be a more significant influence on broker use than the characteristics of the assets being traded.

Inflation‐hedging properties of indirect real estate investments in Germany

PurposeThis paper seeks to shed light on the question whether German real estate investment vehicles provide an effective hedge against inflation. To do so it aims to investigate open‐end real estate funds, special funds and real estate stocks.Design/methodology/approachTraditional approaches as well as cointegration and causality tests are applied to monthly and quarterly index data from 1992:04 to 2009:12 for the subject investment vehicles.FindingsThere is strong evidence that real estate returns are almost independent from inflation in the short run. None of the investigated investment vehicles provide a hedge against expected and unexpected inflation at different lags. In contrast, cointegration tests show that real estate stocks, open‐end funds and special funds do provide a hedge against inflation in the long term. Likewise, causality tests suggest that real estate performance is influenced by inflation in the long term.Research limitations/implicationsThe study still could not investigate closed‐end funds and G‐REITs. Yet, it does capture the most and comprehensive part of the indirect German real estate investment market.Practical implicationsInflation‐hedging capabilities are of particular interest in periods of economic instability. Especially institutional investors with large asset portfolios seek to adjust their asset allocation to changing conditions.Originality/valueTo date, research papers on the subject of inflation‐hedging capabilities of real estate almost exclusively focus on REITs in the USA and in the UK. Research about the German real estate market and alternative investment vehicles is rare – partly due to a lack of transparency over the past – although international investors more and more adhere to the German real estate investment market.

Performance of open‐ended real estate funds in Germany

PurposeIn Germany, open‐ended funds represent the prevailing form of indirect real estate investment for retail and institutional investors. The purpose of this paper is to address whether significant performance differences occur between retail and institutional funds.Design/methodology/approachThe relative fund performance of 137 funds investing in Germany and abroad are each measured against tailored Investment Property Databank performance benchmarks of direct property investments. Such benchmarks shall mimic the asset allocation of any particular fund. Data on retail fund performance are retrieved from the fund association BVI, the data on institutional fund performance are derived from the individual statements of accounts for each fund.FindingsGerman open‐ended funds show significant differences in mean relative returns. The differences are mainly driven by the respective asset allocation of the funds, although relative returns against tailored benchmarks as dependent variables are supposed to offset country‐specific return fluctuations. Institutional investors tend to be better‐off than retail investors.Research limitations/implicationsLiquidity holdings are not (and can not be) extracted from fund performance with the given data. In this regard, it must be acknowledged that retail funds by nature are induced to carry more liquidity. Second, the high significance of the factor asset allocation may indicate that country‐specific benchmarks could still be tailored more effectively. However, the conclusions from this paper remain unaffected. Ex post variations in the grouping of funds explain additional fund performance variance. In particular, it would be interesting to analyze the performance patterns of single‐investor funds and the influence or control that is being exercised by single‐investors in institutional funds.Originality/valueResults give new insights into the performance of open‐ended real estate funds. The analysis helps explaining performance patterns and contributes to an improved understanding of the German indirect real estate investment market.

不動産投資市場の発展に向けたプロパティマネジメントのあり方について

The definition of property management in Japan has been brought since the later 1990s, when Japanese real estate securitization market started. This new idea has contributed to the establishment of accountability, transparency and neutralization towards Japanese real estate investment market. Despite the fact that there is the difference between oversea, Japanese law and custom, the idea has been created as same, and thus, a sort of incongruity has occurred in the actual management scene. In addition, such as exaggerated cost-cut towards maintenance services in order to increase revenue in short-term might have damaged property itself from long-termed point of view. In this essay, the relation between the economy, the real estate and property management in Japan is examined. Then, the style of Japanese original property management is developed by defining the union of property management and building maintenance. Finally, the main proposal is that the most significant service, for the purpose of real estate value-control, is born from the united point of view.

金融商品取引法施行に伴う不動産投資市場への期待と希望

金融商品取引法施行に伴う不動産投資市場への期待と希望

金融商品取引法の不動産投資市場における意義

金融商品取引法の不動産投資市場における意義