Continental Factors in International Real Estate Returns

Posted: 8 Jul 1998

See all articles by Piet M. A. Eichholtz

Piet M. A. Eichholtz

University of Maastricht - Limburg Institute of Financial Economics (LIFE)

Ronald Huisman

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Kees C. G. Koedijk

Tilburg University - Department of Finance

Lisa Schuin

Maastricht University

Date Written: February 1996

Abstract

In this paper, we investigate whether real estate returns are driven by continental factors. This is especially relevant for determining the country allocation of international real estate portfolios. Strong continental factors imply that optimal diversification can only be achieved by investing inter-continentally. We find strong continental factors in Europe and North America. For the Asia/Pacific region, real estate returns were independent of continental influences. This implies that European, North American and Asian real estate investors can find the best diversification opportunities in the Asia/Pacific region.

JEL Classification: G15

Suggested Citation

Eichholtz, Piet M. A. and Huisman, Ronald and Koedijk, Kees G. and Schuin, Lisa, Continental Factors in International Real Estate Returns (February 1996 ). Available at SSRN: https://ssrn.com/abstract=9031

Piet M. A. Eichholtz (Contact Author)

University of Maastricht - Limburg Institute of Financial Economics (LIFE) ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
+31 43 3883648 (Phone)
+31 43 3258530 (Fax)

Ronald Huisman

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Kees G. Koedijk

Tilburg University - Department of Finance ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 4663048 (Phone)
+31 13 4662052 (Fax)

Lisa Schuin

Maastricht University

P.O. Box 616
Maastricht, 6200MD
Netherlands

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