Inflation and Real Estate Investments
23 Pages
Posted: 29 Nov 2011
Last revised: 18 Aug 2016
National Association of Real Estate Investment Trusts®
University of Pennsylvania - Wharton School, Department of Real Estate ; University of Pennsylvania - Accounting Department
Date Written: November 29, 2011
Abstract
This paper analyzes the inflation sensitivity of real estate investments, comparing them to other inflation-sensitive assets. The most transparent source of real estate investment returns comes from publicly traded stocks of real estate investment trusts (REITs). The authors examine the available return data, with an emphasis on their relationship to US inflation, although conclusions may apply elsewhere as well.
Keywords: Property, securities, real estate investment trusts, REIT, REITs, hedge effectiveness, illiquid assets, portfolio allocation, Sharpe ratio, inflation protection, inflation sensitivity
JEL Classification: E31, G11, G21
Suggested Citation:
Suggested Citation
Case, Bradford and Wachter, Susan M., Inflation and Real Estate Investments (November 29, 2011). U of Penn, Inst for Law & Econ Research Paper No. 11-33. Available at SSRN: https://ssrn.com/abstract=1966058 or http://dx.doi.org/10.2139/ssrn.1966058
