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

63 Pages Posted: 10 May 2011 Last revised: 19 May 2011

Multiple version iconThere are 3 versions of this paper

Date Written: May 1, 2011

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

Lieser, Karsten and Groh, Alexander Peter, The Attractiveness of 66 Countries for Institutional Real Estate Investments: A Composite Index Approach (May 1, 2011). International Conference of the French Finance Association (AFFI), May 11-13, 2011. Available at SSRN: https://ssrn.com/abstract=1833606 or http://dx.doi.org/10.2139/ssrn.1833606

Karsten Lieser

Allianz Real Estate ( email )

Germany

Alexander Peter Groh (Contact Author)

EMLYON Business School ( email )

23 Avenue Guy de Collongue
Ecully, 69132
France

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