Real Estate Investment Research Articles

Financialization, affordable housing and urban governance: a spatio-temporal analysis of four South African REITs

ABSTRACT Real estate investment trusts (REITs), spread from the United States since the 1960s, gathered momentum following the global financial crisis. In South Africa, REITs have operated since 2013, with only a few of the 27 REITS focused on residential investments. Although the four REITs with substantial residential portfolios, largely in “affordable housing”, meet a critical need in South Africa’s unequal housing landscape, it is crucial to examine the practices and effects of these apparently new actors. In conversation with a growing critical literature on the financialization of rental housing through REITS in cities around the world, we investigate how South African REITs with significant residential portfolios reflect the trends characterizing REITs globally but with contextual specificities. Our exploratory, spatio-temporally attuned analysis of these firms’ histories, ownership, performance and geographies reveals how South African affordable rental housing financialization is largely embedded within local capital markets with established local institutional investors and real estate actors that share longer histories of investment in affordable housing. These agents’ capacities and limits are critically shaped by national political-economic conditions, municipal service provision and historically produced built environments. Attention to such historical, place-based and multi-scalar relations are key in understanding REITs’ diverse trajectories across context.

Regulation of the legal status of real estate – selected problems and challenges

The article discusses key problems related to the regulation of the legal status of real estate in the context of the growing importance of the real estate market and investments. The authors propose the use of the case study analysis method to identify and solve problems in the regulation of this area. The main objective of the article is to conduct an analysis of legal regulations regarding the regulation of the legal status of real estate and to propose specific solutions aimed at improving the regulatory process in Poland. As part of the proposed solutions, the authors propose introducing clearly formulated definitions, with an emphasis on the digitalisation of archival materials and the creation of an implementing act taking into account the regulation process. Additionally, they propose developing a uniform path for data analysis in the process of regulating the legal status of real estate. They also indicate the need to account for the solutions used in France and Germany, where the process of regulating real estate is more transparent and effective. In conclusion, the authors emphasize the need for a comprehensive approach to improving the process of regulating the legal status of real estate, including introducing appropriate definitions, digitalizing documents, creating and implementing an appropriate regulations, and adapting solutions used in other countries. This is the only way to ensure effective and efficient management of the legal status of real estate in Poland.

Re-framing a semi-periphery: The making of Lisbon as a global real estate market

This paper examines how Lisbon transformed from a city widely seen as a crisis-ridden ‘no-go’ zone into an ideal real estate investment destination. This redesignation allowed the city to serve as a ‘spatial fix’ for overaccumulated capital in core Europe in the aftermath of the global financial crisis. While the push for capital to ‘switch’ between sectors and geographies rests on systemic dynamics, this paper explores how the spatial fix is also discursively mediated. Studying real estate industry reports as ‘market devices’ and drawing from interviews with real estate actors and observations at industry events, I demonstrate how industry narratives reinforced the need to shift capital to peripheral markets, and re-framed Lisbon itself into a lower-risk, viable destination for investment. This helped set the conditions for global corporate investors to enter the Lisbon market. This article thus builds on a growing dialogue between critical political economy and performativity, by exploring how narratives both reflect and reproduce core-periphery relations.

Corporate practices of racial banishment in Los Angeles

ABSTRACT Using a new dataset of eviction records produced through the Tenant Power Toolkit in Los Angeles and interviews with affected tenants, I trace the role of corporate landlords in driving new geographies of Black eviction. With novel access to both tenant and landlord information, we are able to identify landlords’ surgical and deeply disproportionate eviction of Black tenants from neighborhoods with few Black residents. I find that the largest corporate landlords – national Real Estate Investment Trusts – are central in the enactment of these eviction patterns in LA's post-pandemic housing market. Innovations in corporate practice in screening and eviction which responded to the risk and regulatory environment of the pandemic further contributed to saddling these Black tenants with disproportionate rental debt, redoubling the extirpative character of Black tenancy. I conclude that eviction comes to function as a central mechanism for producing and enforcing the racialized socio-spatial order and that collective organizing for tenant power centering Black life and the protagonism of tenant-debtors is necessary to change that order.

Energy Efficiency, CO2 Emission Reduction, and Real Estate Investment in Northern Europe: Trends and Impact on Sustainability

Energy efficiency and CO2 emission reduction are key objectives related to climate change mitigation, sustainable development, and energy resource management. In the Nordic context, energy consumption trends in both the residential and industrial sectors are closely linked to European Union policies, technological innovation, and real estate investments. In recent decades, the development and renovation of the real estate sector has become one of the most important factors determining changes in energy consumption, especially in residential buildings, which remain among the largest energy consumers and polluters. In this context, countries’ efforts to reduce CO2 emissions and increase energy efficiency are inseparable from the real estate sector’s contribution to these processes, by promoting investments in building modernization and energy-saving technologies. However, the real estate sector remains a complex area where economic interests need to be reconciled with environmental objectives, especially in the context of EU strategies such as the Renovation Wave and the Energy Efficiency Directive. This article examines the links between real estate investment, energy efficiency, and CO2 emission reduction, based on quantitative analysis, to assess how the development of the real estate sector and EU policy measures affect sustainable development in Northern Europe. This study uses advanced quantitative methods, including a panel regression model, which helps better reveal the long-term dependencies between investment, energy consumption, and emissions dynamics. This article highlights the importance of the real estate sector in implementing sustainability policies and suggests strategic solutions that can help reconcile economic and environmental priorities.

Evaluating the Socioeconomic Determinants of REIT Adoption in Mumbai: Behavioral Barriers and Drivers in Investment Decision-Making

The study examines how socioeconomic factors along with behavioral tendencies considerably shape investors' willingness to adopt property investment trusts. Real estate investment trusts are an affordable way for investors to enter the real estate market. They can do so without directly owning the properties. Nonetheless, their employment remains restricted, specifically on individual traders. This research looks at the main factors of age, gender, education, job, and also income, with investment history using survey data and binary logistic regression analysis in JAMOVI. These findings indicate that none of the variables have a big effect on REIT investment choices, with investment experience displaying a small amount of importance (p = 0.056). Therefore, the null hypothesis cannot be definitively disproved in any capacity, and it can be firmly concluded that conventional socioeconomic factors may not be the single fundamental forces behind the adoption of REITs. The research points to the importance of a closer examination of psychological and financial literacy-related determinants, which might have an even greater impact in determining REIT investments.

Optimizing Real Estate Portfolio Using Genetic Algorithm and Machine Learning Approaches

This study presents an integrated approach to Real Estate Investment Trust (REIT) portfolio optimization using Genetic Algorithms (GA) and Machine Learning (ML), emphasizing reproducibility, risk analysis, and theoretical grounding. The proposed framework combines a GA-driven alpha search mechanism with advanced ML models−Multiple Linear Regression (MLR), Neural Networks (NN), and Long Short-Term Memory (LSTM)−trained on 23 technical and fundamental features. Improvements over traditional models (ARIMA, GARCH) are demonstrated through robust benchmarking, including transaction cost analysis and COVID-19 drawdown performance. Notably, GA yields a Sharpe ratio of 9.72, while NN achieves a Sharpe of 3.50. This study aligns with modern portfolio theory and addresses behavioral market responses, offering a data-driven yet interpretable foundation for REIT portfolio strategies.

Utilizing the real estate investment trusts for portfolio optimisation by application of genetic algorithm

Complex investment decisions require thorough study. Modern portfolio theory provides some broad guidelines on diversification within this framework, focusing on financial instrument categories. A diverse portfolio and favorable economic conditions are the main factors affecting investor returns. The research used the RIETS portfolio and genetic algorithm to improve investment portfolio Sharpe ratios. Since 2008, when the financial crisis increased activity, investors and scholars have focused on REITs. REIT investments have gained popularity in recent years due to their long-term stability and consistent profitability. Studies that emphasize management perspectives are valuable, but they also have significant limitations. Asset management’s primary goal is to optimize investor returns. It is imperative to evaluate asset management strategies in order to guarantee the assets’ long-term efficiency. This study examines 456 distinct portfolios in order to rectify this deficiency and demonstrates how the incorporation of REITs into mixed-asset portfolios enhances them in a variety of critical financial metrics. The results of the study suggest that utilizing genetic algorithm optimization outperforms a globally diversified portfolio with the lowest volatility. The data indicates that investing in REITs is a highly effective strategy for improving the Sharpe ratio, average returns, and risk profile.

The The Dimension and Dynamics of Property Law Practice in The Realm of Real Estate Investment Trusts (Reits) in Nigeria

Commercial property law and the Real estate market are majorly shaped by overall Nigerian economic activity, which determines demand for real estate. Similarly, with land and labour, real estate is a factor of production in our economy, and the efficient use of the same can have a significant and robust impact on business output. The real estate industry is a highly capital-intensive business that can be harnessed by practitioners who use the collective capital of investors to purchase and manage income-yielding property and mortgage loans in the form of real estate investment trusts (REITs). By navigation through systematic research and extensive reliance on statutes in concert with authoritative materials, we assert that the dimension of REITs has a place as it creates super dynamics relevant to the practice of property law in Nigeria. The authors aim to explore and analyse the benefits of REITs in Nigeria's cutting-edge property law practice. Further, this article discusses, from an investor perspective and the dynamics of heterogeneity of the economy, that the infusion of REITs in the framework of property law practice in Nigeria is imperative to further heighten the all-important area of practice into wholesome capital investment and economic growth.

Dynamics of REIT Returns and Volatility: Analyzing Time-Varying Drivers Through an Explainable Machine Learning Approach

Abstract Real Estate Investment Trust (REIT) returns and volatility have been extensively studied, yet typically in isolation from each other. Given that returns and volatility are generally connected in the eyes of investors, we simultaneously analyze the drivers of REIT returns and volatility over the modern REIT era (1991–2022) using an eXtreme Gradient Boosting (XGBoost) machine learning algorithm. We enhance transparency and utility through the application of explainable artificial intelligence (XAI) techniques, particularly SHapley Additive exPlanations (SHAP) and Accumulated Local Effects (ALE), which unpack the decision-making process of the model. Our analysis reveals that while no single feature consistently dominates, the influence of various drivers fluctuates significantly over time. Notably, the importance of macroeconomic indicators generally diminishes, while REIT-specific characteristics become more influential during the sample period. Furthermore, market cycles (macroeconomic shocks) cause large deviations from otherwise long-run patterns. However, during these times of economic uncertainty, drivers of risk and return correlate more strongly in comparison to times of economic stability. Lastly, we find non-linearities in the way the drivers influence returns and volatility. These insights have significant implications for investors, policymakers, and researchers as they navigate the evolving landscape of real estate investments.

Direct and Indirect Real Estate Investment Performance – Data from Bulgaria, the Eurozone, the UK and the US

There is ample research on the similarities and differences between direct and indirect investment in real estate. Some claim that both behave similarly, offer similar investment performance and diversification benefits to investors, while others are in the view that there are differences and the two types of investments in real estate cannot be treated as substitutes. This paper analyses the capital return and risk performance of direct investment in residential properties and indirect investment in real estate on the stock exchange in Bulgaria. The results are compared to other markets in the eurozone, the UK and the US. Overall direct investments in the residential market appear preferable for the risk averse investor compared to indirect investments in REITs especially in adverse economic conditions. The average return in the residential market is greater than the return from REITs in the eurozone and the UK and almost equal to it in Bulgaria and the US. However, the volatility is significantly lower than the volatility of REITs returns in all markets. There is significant improvement in the volatility of REITs in more stable economic conditions but it is not enough to outperform direct investments on risk adjusted basis.

Modern Real Estate Investment Methods for Public Accessibility and the Global Rise of Real Estate Tokenization: A Case Study on Brazil and Thailand

The real estate industry is undergoing a profound transformation with the integration of digital investment methods, particularly real estate tokenisation. This modern investment approach leverages blockchain technology to divide property ownership into digital tokens, making real estate assets more accessible to a broader range of investors. Tokenisation facilitates fractional ownership by reducing the financial barriers typically associated with property investments and allowing individuals to acquire portions of valuable real estate assets rather than whole properties. This study investigates the impacts of tokenisation on public access to real estate investments in Brazil and Thailand, highlighting their effects on market growth, investor participation, and economic sustainability. This case study looks at the regulatory frameworks, new market trends, and technological advances in these regions and compares how they were adopted, how far they have come, and the problems that come with that. The researchers seek to determine how tokenisation has influenced real estate investment strategies, reshaped traditional ownership models, and fostered economic inclusion. Additionally, it evaluates the broader implications of tokenisation for the global real estate sector, offering insights into its future trajectory.

Developing the Land Use Rights Market in Hoa Binh Region: Current Situation and Solutions

Looking from the perspective of the impact of real estate policies in recent times, it can be seen that the direction of the policy's impact has tended to be positive, reviving the land use rights market in Hoa Binh province. The policies have really helped real estate investors have flexibility in investment strategies, have orientation in solving the deadlocks of real estate projects in the province in recent times. Investors can request to adjust the project structure, change the investment purpose appropriately, aiming at real estate consumption demand. Or they can transfer the project when there is a partner who wants to buy the project. In addition, when the market receives more investors, home buyers with financial potential from foreign direct investment and foreign customers, it is a condition to expand the market, at the same time, increase competitiveness in the land use rights market in Hoa Binh province. In the period of 2017 - 2024, thanks to policies to stimulate real estate development, many housing segments have been formed in Hoa Binh province, meeting the demand for different types of housing.

НОРМАТИВНО-ПРАВОВІ ПЕРЕДУМОВИ ФОРМУВАННЯ КОЛІВІНГІВ В УКРАЇНІ

Co-living, as an innovative format of residential real estate, is rapidly gaining popularity in Ukraine and around the world. This concept, which combines communal living with the opportunity for social and professional exchange, has become a response to modern challenges of urbanization, mobility, and economic efficiency. The purpose of this article is to investigate the impact of forming a regulatory and legal framework, particularly state building codes, on the development and implementation of co-living concepts in Ukraine. Despite global experience and positive examples of co-living functioning in various countries, Ukraine still lacks a clear legal framework for their regulation. Current legislation does not take into account the specifics of communal living, creating legal uncertainty and complicating the processes of renting and managing such properties. This article examines the main regulatory acts that influence the formation of co-living spaces in Ukraine and compares them with international regulatory experiences. The article addresses the issue of the absence of regulatory frameworks for shared use of common areas in co-living spaces in Ukraine. The uncertainty in state building codes regarding requirements for such areas creates a number of challenges for residents, developers, and regulatory bodies. The main consequences of this issue include low levels of comfort and safety, sanitary and domestic complications, as well as potential conflicts among residents. Furthermore, the lack of clear standards complicates the legalization and development of this type of housing, deterring investors. The article emphasizes the need for developing new building codes or adapting existing ones to the specifics of co-living spaces. This would contribute to improving residents' quality of life, ensuring their safety, and promoting modern housing formats in Ukraine. The introduction of clear regulations would also stimulate investment and market development in real estate.

The Rise of REITs (Real Estate Investment Trusts): A Comparative Study of Global Markets

Real Estate Investment Trusts (REITs) have emerged as a significant financial instrument, offering investors exposure to real estate markets without direct ownership. Since their inception in the United States in 1960, REITs have expanded globally, with over 40 countries adopting this model. This paper provides a comparative analysis of REIT markets across developed and emerging economies, examining key trends, challenges, and opportunities. The study highlights the dominance of the U.S., Australia, and Europe in REIT market capitalization while recognizing the rapid growth in Asia-Pacific, particularly India. Key factors driving REIT expansion include economic growth, urbanization, technological advancements, and favorable regulatory frameworks. Additionally, the study explores the role of AI and fintech in enhancing investment strategies and market efficiency. Despite their advantages—such as liquidity, portfolio diversification, and inflation resistance—REITs face challenges, including regulatory complexities, taxation burdens, and macroeconomic volatility. The paper also discusses the growing importance of Environmental, Social, and Governance (ESG) factors, leading to the rise of Green REITs. As global real estate markets evolve, REITs are poised for further expansion, particularly in emerging economies. The findings underscore the need for policy reforms, investor education, and technological integration to enhance the efficiency and accessibility of REIT investments worldwide.

The Comparison of Artificial Neural Networks and Panel Data Analysis on Profitability Prediction: The Case of Real Estate Investment Trusts

The Comparison of Artificial Neural Networks and Panel Data Analysis on Profitability Prediction: The Case of Real Estate Investment Trusts

Practice Briefing: Mergers and Acquisitions in real estate asset management (Part 1) – strategic motivations, valuation and transaction structuring

PurposeThis paper explores Mergers and Acquisitions (M&A) in the real estate asset management sector, with a focus on the strategic motivations driving transactions, valuation methods specific to the sector and key considerations in transaction structuring. By integrating buyer and seller perspectives, it examines the factors influencing M&A success, including financial and strategic alignment, valuation challenges and structuring models. The subsequent paper (Part 2) will relate to the execution phase, covering inter alia due diligence, negotiation and post-merger integration.Design/methodology/approachThis paper adopts an expert opinion-based approach, leveraging insights from two seasoned professionals: a managing director with over 20 years of investment banking experience in the asset management sector at a leading global advisory firm and a real estate professional with 25 years of experience, who co-founded a real estate investment and asset management boutique later acquired by a publicly listed global investment firm.FindingsThe paper identifies critical success factors for M&A in real estate asset management, synthesizing expert insights into strategic motivations, valuation techniques and transaction structuring that align buyer and seller interests. While these elements form the foundation for a successful transaction, practical execution – including due diligence, negotiations and integration – will be explored in Part 2.Practical implicationsBy addressing the complexities of M&A in real estate asset management, this paper serves as a guide for stakeholders navigating M&A in the sector, equipping them with the knowledge required for informed decision-making.Originality/valueThis paper contributes to both academic research and industry practice by offering a structured approach to M&A in real estate asset management. By separating strategic and valuation considerations from the execution phase, it provides a framework for understanding the drivers for M&A, setting the stage for a subsequent discussion on the implementation of M&A processes in Part 2.

Illiquid Assets Allocation with Jumps and Lock-in Periods under General Utility Function

The asset allocation problem of illiquid assets is an important issue in the study of financial mathematics. Due to the trading restrictions, market inefficiency and illiquidity of illiquid assets, such illiquid assets (such as real estate, private equity, etc.) rely on uninsurable risk sources and provide certain liquidity dividends. In addition, the liquidity of illiquid assets will not remain unchanged over time, so illiquid assets will have a lock-up period during which investors cannot trade illiquid assets. The paper considers the asset allocation problem under the general utility function when the trading time of illiquid assets follows a Poisson process. In this case, the agent can only trade illiquid assets at discrete moments, and the agent can only obtain price information on the trading day of illiquid assets. Finally, this paper selects the daily data of NASDAQ-100 (NDX) Index and MSCI US Real Estate Investment Trust Index (REITs) as numerical analysis objects to compare the optimal investment strategies.

Drivers of Financial Performance of Top Real Estate Companies in India and Singapore - A Comparative Analysis

India and Singapore being in top 10 APAC (Asia - Pacific) countries and one of the preferred destinations for investors in real estate, analyzing the top real estate companies’ financial performance and comparing them can be an important contribution in the literature This study aims to identify and compare the financial performance drivers of top real estate companies in India and Singapore. It also analyzes and compare the impact of macroeconomic variable like GDP, inflation and financial indicators on the financial performance of top real estate companies of Singapore and India. It was found out that the Mean of net profitability ratio, current ratio, debt to capital employed ratio, creditors turnover ratio for top Indian real estate companies according to market capitalization is equal to top Singapore real estate companies, whereas, debt equity ratio, stock turnover ratio, debtor’s turnover ratio and return on capital employed (ROCE) is not equal. In fact, mean GDP growth rate of Singapore is equal to GDP growth rate of India and mean of inflation rate of Singapore is not equal to inflation rate of India. Further it was estimated using unbalanced panel regression at 5% significance level that ROCE significantly impacts net profit ratio for Indian and Singapore top real estate companies and even net profit ratio significantly impacts ROCE for Indian and Singapore top real estate companies. But for Indian top real estate companies ROCE impacts net profitability much higher than Singapore real estate companies and even net profitability impacts ROCE more in Indian top real estate companies than Singapore real estate companies. Inflation significantly impacts the ROCE of Singapore real estate companies, but not for Indian real estate companies. Higher inflation in India can lead to increased profitability, but it may also result in a decline in ROCE unless companies manage their inventory efficiently to boost sales. Singaporean real estate companies tend to experience an increase in net profit when the country’s GDP growth rate is high. Maintaining high liquidity and efficient capital utilization is essential for sustained financial performance. In Singapore, ROCE tends to rise with increasing inflation, highlighting the need for companies to balance profitability and capital efficiency.

Unlocking land lease investment potential in Zanzibar: challenges and opportunities

ABSTRACT Land is a critical resource for real estate investments globally, and in Zanzibar, accessing land leases poses significant challenges for potential investors. This study investigates the land lease process in Zanzibar, focusing on the obstacles and opportunities encountered by investors. Utilising a qualitative methodology, 14 informants were engaged through structured interviews, including government officials and real estate speculators. Thematic analysis of the data revealed key challenges: bureaucratic hurdles, weaknesses in the legal framework, inconsistent coordination among authorities, lack of transparency, and operational inefficiencies. These challenges hinder investment potential and deter both local and international investors. To address these issues, the study recommends implementing anti-corruption measures, legal reforms to simplify and clarify land lease processes, establishing a ‘One Stop Centre’ for investments, and improving administrative efficiency. By enhancing the transparency and efficiency of the land leasing system, Zanzibar can create a more conducive environment for investment. The findings of this research offer valuable insights for policymakers, scholars, and researchers aiming to improve the investment climate in Zanzibar, ultimately contributing to sustainable economic development in the region. The study emphasises the importance of targeted reforms to unlock the land lease investment potential and foster growth in various sectors.