The Determinants of International Commercial Real Estate Investment

Posted: 23 Jun 2013

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: January 1, 2013


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 (January 1, 2013). Journal of Real Estate Finance and Economics, Forthcoming, Available at SSRN:

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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