The Attractiveness of 66 Countries for Institutional Real Estate Investments: A Composite Index Approach

Lieser, Karsten; Groh, Alexander Peter

doi:10.2139/ssrn.1638286

The Attractiveness of 66 Countries for Institutional Real Estate Investments: A Composite Index Approach

ERES Conference Paper No. 2010

63 Pages Posted: 11 Jul 2010 Last revised: 26 Jan 2011

See all articles by Karsten Lieser

Alexander Peter Groh

EMLYON Business School

There are 3 versions of this paper

Date Written: July 10, 2010

Abstract

We address the attractiveness of 66 countries worldwide for institutional real estate investments through the construction of a composite index. For the index’s composition, we refer to the results of prior research on the parameters determining real estate investment activity on an aggregated country level. Our index reveals a country ranking that correlates reasonably with commercial real estate investments, as proven with back-tests over six years. We increase the transparency of market variables for decision-making in global real estate asset allocation and provide the key determinants that shape national real estate markets. The results highlight the strengths and weaknesses of developed, developing and emerging economies and provide guidelines for political improvements to attract international capital to spur real estate investment activity.

Keywords: Real Estate Investments, International Asset Allocation, Real Estate Market Attractiveness

JEL Classification: G11, G23, G24, O16, O18, P25, P52

Suggested Citation: Suggested Citation

Lieser, Karsten and Groh, Alexander Peter, The Attractiveness of 66 Countries for Institutional Real Estate Investments: A Composite Index Approach (July 10, 2010). ERES Conference Paper No. 2010. Available at SSRN: https://ssrn.com/abstract=1638286 or http://dx.doi.org/10.2139/ssrn.1638286