The Persistence of Distance: A Gravity Model of European Cross-Border Real Estate Development Flows

27 Pages Posted: 5 Apr 2014

See all articles by Catherine Bushnell

Catherine Bushnell

CBRE

Patrick McAllister

University College London - Bartlett School of Planning

Anupam Nanda

University of Reading - School of Real Estate & Planning, Henley Business School

Date Written: April 3, 2014

Abstract

This paper investigates the scale and drivers of cross-border real estate development in western Europe and central and eastern Europe. Placing cross-border real estate development within the framework of foreign direct investment, conceptual complexities in characterizing the notional real estate developer are emphasized. Drawing upon a transaction database, we find that western European markets tend to be dominated by domestic real estate developers. Much higher levels of market penetration by international real estate developers are found in the less mature markets of central and eastern Europe. We apply a range of gravity modeling approaches to investigate determinants of volume of development flows. Empirical modeling based a number of specifications revealed the importance of size of the economies, distance between countries and differences in capital market depth as significant determinants of cross-border real estate development flows.

Keywords: Real Estate development, Cross-border flows, Gravity model, Poisson Regression

JEL Classification: F14, O19, R12, C31

Suggested Citation

Bushnell, Catherine and McAllister, Patrick and Nanda, Anupam, The Persistence of Distance: A Gravity Model of European Cross-Border Real Estate Development Flows (April 3, 2014). Available at SSRN: https://ssrn.com/abstract=2419978 or http://dx.doi.org/10.2139/ssrn.2419978

Catherine Bushnell

CBRE ( email )

21 Bryanston Street
London, W1H 7PR
United Kingdom

Patrick McAllister

University College London - Bartlett School of Planning ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Anupam Nanda (Contact Author)

University of Reading - School of Real Estate & Planning, Henley Business School ( email )

Whiteknights
Reading, Berkshire RG6 6AH
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
84
Abstract Views
507
rank
322,610
PlumX Metrics