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

Posted: 11 Dec 2015

See all articles by David Geltner

David Geltner

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

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Date Written: December 2015

Abstract

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

Suggested Citation

Geltner, David, Real Estate Price Indices and Price Dynamics: An Overview from an Investments Perspective (December 2015). Annual Review of Financial Economics, Vol. 7, pp. 615-633, 2015, Available at SSRN: https://ssrn.com/abstract=2702342 or http://dx.doi.org/10.1146/annurev-financial-111914-041850

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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