Real Estate Price Indices and Price Dynamics: An Overview from an Investments Perspective

43 Pages Posted: 21 Dec 2014

See all articles by David Geltner

David Geltner

Massachusetts Institute of Technology (MIT); MIT Center for Real Estate

Multiple version iconThere are 2 versions of this paper

Date Written: December 19, 2014

Abstract

This article reviews the state of the art in real estate price indexing and, related to that, the current state of knowledge about real estate price dynamics, with a primary focus on investment property, income generating commercial properties. Such assets form a large component of the national wealth and of the capital markets, and represent a major investment asset class. They are characterized by heterogeneity of various types, among assets, markets, and data sources, making the study of real estate pricing uniquely challenging. Yet urban economists and econometricians have pioneered major new price indexing methodologies in recent decades which, combined with new types of data sources, are now shedding new light on the nature of commercial property price dynamics, revealing both important commonalities as well as unique differences compared with equities and fixed-income securities pricing.

Keywords: Commercial Property, Real Estate, Price Indexing, Price Dynamics, Asset Markets

JEL Classification: G11, G12

Suggested Citation

Geltner, David, Real Estate Price Indices and Price Dynamics: An Overview from an Investments Perspective (December 19, 2014). Available at SSRN: https://ssrn.com/abstract=2540742 or http://dx.doi.org/10.2139/ssrn.2540742

David Geltner (Contact Author)

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
Cambridge, MA 02139
United States

MIT Center for Real Estate ( email )

77 Massachusetts Avenue
Cambridge, MA 02139
United States

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