The Determinants of International Commercial Real Estate Investment

46 Pages Posted: 16 Sep 2011 Last revised: 10 Nov 2012

See all articles by Karsten Lieser

Karsten Lieser

eXapital Capital Advisors

Alexander Peter Groh

EMLYON Business School

Multiple version iconThere are 2 versions of this paper

Date Written: July 1, 2011


We examine the determinants of international commercial real estate investment using a unique set of panel data series for 47 countries worldwide, covering the period from 2000 to 2009. We explore how different socio-economic, demographic and institutional characteristics affect commercial real estate investment activity by determining both cross-sectional and time-series estimators, running augmented random effect panel regressions. We provide evidence that economic growth, rapid urbanization and compelling demographics attract real estate investment, and also demonstrate that a lack of transparency in the legal framework, administrative burdens of doing real estate business, socio-cultural challenges and political instabilities reduce international real estate allocations.

Keywords: Real Estate Investment Determinant; International Asset Allocation; Real Estate Market Attractiveness

JEL Classification: C33, C23, G11, G23, G24, O16, O18, P25, P52

Suggested Citation

Lieser, Karsten and Groh, Alexander Peter, The Determinants of International Commercial Real Estate Investment (July 1, 2011). Available at SSRN: or

Karsten Lieser (Contact Author)

eXapital Capital Advisors ( email )


Alexander Peter Groh

EMLYON Business School ( email )

23 Avenue Guy de Collongue
Ecully, 69132

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