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

Posted: 15 Oct 2010 Last revised: 9 Nov 2010

Karsten Lieser

IESE Private Equity Investment Index

Alexander Peter Groh

EMLYON Research Centre for Entrepreneurial Finance; EMLYON Business School

Multiple version iconThere are 3 versions of this paper

Date Written: July 1, 2010

Abstract

We address the attractiveness of 66 countries around the world for institutional real estate investments by constructing a composite index. For the index 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 well with commercial real estate investments, as we prove 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, transition 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

Lieser, Karsten and Groh, Alexander Peter, The Attractiveness of 66 Countries for Institutional Real Estate Investments: A Composite Index Approach (July 1, 2010). IESE Business School Working Paper No. 868. Available at SSRN: https://ssrn.com/abstract=1692165 or http://dx.doi.org/10.2139/ssrn.1692165

Karsten Lieser (Contact Author)

IESE Private Equity Investment Index ( email )

Maria-Theresia-Stra├če 15
Munich, Bavaria 81675
Germany

Alexander Peter Groh

EMLYON Research Centre for Entrepreneurial Finance ( email )

23 Avenue Guy de Collongue
Ecully, 69132
France

EMLYON Business School ( email )

23 Avenue Guy de Collongue
Ecully, 69132
France

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